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Paper doesn't have much value either, and precious metal values are also inflated thanks to hoarding/speculation.

• damian2000 14y ago
  Exactly OPs point. I think they meant that in the event of a crash, you won't be left with much. Same as for the case of hyper-inflation of a currency, or a devaluation in precious metals.
  • zanny 14y ago
    Go figure : when you are using a trust relationship between parties to negotiate value instead of just trading in raw goods, you are vulnerable to the destruction of that exchange-trust system. It is why all the people aruging gold is such a better investment than BTC are nuts. If gold dropped its market value overnight by 90%, you would still lose 90% of your potential fiat exchanged currency as if BTC dropped 90%. All gold has going for it is less volitility. If gold ever stopped being a reserve resource rather than a useful metal, you would not get a fraction of what you spent on your gold selling it to industrial plants to make conductive cable out of.