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By the same token, what value does gold mining have beyond "creating" gold?
by NateDad 13y ago
By the same token, what value does gold mining have beyond "creating" gold?
- graeham 13y agoGold has value and use aside from as a currency.
- NateDad 13y agoIt has some very niche uses, but they're incredibly limited and would not put gold's value at even 0.1% of its current value. The bitcoin protocol has quite a lot of potential uses (see master coin and colored coins), even if actual bitcoins were worth nothing monetarily.
- XorNot 13y agoA Bitcoin is not anything useful by itself. You can't melt that hash down and plate electronics with it. But you have hit on an important point, because throughout history almost every empire bankrupted itself at one point or another when it made a big find of gold, and quickly mined and spent a lot of it presuming it was rich...and instead, tanked its currency valuations and found itself much worse off because not only had they inflated the hell out of their currency, they'd not adjusted any of their tax rates to match.