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"...it is superior to gold is almost every way" Except for the part where you can actually make things with gold: it is shiny, easy to work with and highly con

by a_c_s 12y ago

"...it is superior to gold is almost every way" Except for the part where you can actually make things with gold: it is shiny, easy to work with and highly conductive. So worst case, if the value of gold plummeted you could still make some awesome jewelry, electronics, dental fillings, etc. While it may not be proportional to the current price, gold does have intrinsic value: Bitcoin has none.

vijayboyapati 12y ago
Gold's use value is much, much lower than the current price reflects. Most of the price of gold is explained by its reservation demand - i.e., monetary demand, both by individuals and central banks. And you're incorrect that bitcoin has no "intrisic value". As this author explains: http://blog.oleganza.com/post/42262765318/direct-use-value-of-bitcoin http://blog.oleganza.com/post/42262765318/direct-use-value-o... ------ Bitcoin network has very interesting properties that allow you to use it not only as a currency. For example, the block chain (decentralized transaction history) is designed to be extremely hard to forge and very easy to verify. This, with some crypto features, allows it to be used for secure time-stamping, proving ownership of tangible property, decentralized DNS and new ways to sign contracts without having to fully trust any one party. Some of these things are already possible using existing software, some require already planned and compatible modifications. -------- There are a great many things that are now possible with the creation of bitcoin and the solving of the Byzantine Generals' problem that were previously impossible. If that's not "intrinsic value" then nothing is.
- a_c_s 12y ago
  If somebody has a single bitcoin they can't sell, there is nothing else they can do with it. Therefore, the bitcoin itself has zero intrinsic value. The value of the idea of the blockchain is not relevant to the value of an individual bitcoin, just as the value of the patents behind autonomous mining trucks (these really exist) has no bearing on the price of an ounce of gold.

by a_c_s 12y ago

vijayboyapati 12y ago

Gold's use value is much, much lower than the current price reflects. Most of the price of gold is explained by its reservation demand - i.e., monetary demand, both by individuals and central banks. And you're incorrect that bitcoin has no "intrisic value". As this author explains: http://blog.oleganza.com/post/42262765318/direct-use-value-of-bitcoin http://blog.oleganza.com/post/42262765318/direct-use-value-o... ------ Bitcoin network has very interesting properties that allow you to use it not only as a currency. For example, the block chain (decentralized transaction history) is designed to be extremely hard to forge and very easy to verify. This, with some crypto features, allows it to be used for secure time-stamping, proving ownership of tangible property, decentralized DNS and new ways to sign contracts without having to fully trust any one party. Some of these things are already possible using existing software, some require already planned and compatible modifications. -------- There are a great many things that are now possible with the creation of bitcoin and the solving of the Byzantine Generals' problem that were previously impossible. If that's not "intrinsic value" then nothing is.

a_c_s 12y ago
If somebody has a single bitcoin they can't sell, there is nothing else they can do with it. Therefore, the bitcoin itself has zero intrinsic value. The value of the idea of the blockchain is not relevant to the value of an individual bitcoin, just as the value of the patents behind autonomous mining trucks (these really exist) has no bearing on the price of an ounce of gold.