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To follow the logic of this article, it could just as easily be titled "the fair price of gold is zero." Gold billion has no value as a monetary instrument. Bu
by morgante 13y ago
To follow the logic of this article, it could just as easily be titled "the fair price of gold is zero."
Gold billion has no value as a monetary instrument. But obviously it, like Bitcoin, has value as a unit of account because it is scarce.
- schmichael 13y agoYou're correct which is why he compares bitcoins to commodities instead of currency and declares it a "purely speculative asset." Note that saying it has no fair price as a currency by no means implies it's worthless. It's just that its worth is purely speculative like any intangible asset like art, intellectual property (e.g.: patents), wine (or at least "valuable" wine whose cost bears no resemblance to how much it cost to produce). Think of it this way: bitcoin isn't a currency you buy goods with; bitcoin is a commodity you barter with. It's just a far more convenient commodity than chunks of gold or pieces of art.