What difference does it make? Do you actually think that the physical nature of gold is what gives it value? Gold's value, despite partial demonetization, is still far higher today than it would be if it only had industrial uses. Do you think the digital units in your bank account don't have value? What do you use to buy things?
The only real problems with the digital units in your bank account is that someone can create them for free & third parties tend to control your access. If you could make them provably scarce & grant every individual soverign acess to what is rightfully theirs, then no other money would be needed.
The reason the shittier money beat gold is because the economic benefits of expanding our trade network globally & reducing transaction costs outweighed the drawbacks of the supply being less limited.
With bitcoin we get a further improvement in reach & an improvement over even gold in terms of scarcity.
The only real problems with the digital units in your bank account is that someone can create them for free & third parties tend to control your access. If you could make them provably scarce & grant every individual soverign acess to what is rightfully theirs, then no other money would be needed.
The reason the shittier money beat gold is because the economic benefits of expanding our trade network globally & reducing transaction costs outweighed the drawbacks of the supply being less limited.
With bitcoin we get a further improvement in reach & an improvement over even gold in terms of scarcity.
"What difference does it make?"
Ceci n'est pas une pipe
Ceci n'est pas une pipe
"Do you actually think that the physical nature of gold is what gives it value?"
Yes, absolutely. The physical nature of gold is 100% responsible for humanity selecting it (and not some other commodity) as money.
The only reason fiat "beat" gold is Gresham's law.
Bad "money" [when artificially valued at par by threat of force] drives out [of circulation and into hoards] the good.
"Do you think the digital units in your bank account don't have value?"
Correct, and every day that gold hits a new all-time high other people are realizing it too.
I think the only rational thing to do with fiat or pure credit instruments is to spend or invest the purchasing power in something else as quickly as possible. This includes the pure credit instrument called Bitcoin.
Yes, absolutely. The physical nature of gold is 100% responsible for humanity selecting it (and not some other commodity) as money.
The only reason fiat "beat" gold is Gresham's law.
Bad "money" [when artificially valued at par by threat of force] drives out [of circulation and into hoards] the good.
"Do you think the digital units in your bank account don't have value?"
Correct, and every day that gold hits a new all-time high other people are realizing it too.
I think the only rational thing to do with fiat or pure credit instruments is to spend or invest the purchasing power in something else as quickly as possible. This includes the pure credit instrument called Bitcoin.
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Bitcoin is not a credit instrument. Energy was invested in the unlocking of even the first of the available units. Now each additional unit requires the expendature of a significant amount if energy to unlock. Generally a pretty significant investment in tools/hardware is required too (much like gold mining).
The properties needed for something to be an ideal money do not include physicality. In fact pysicality increases transaction costs to such a degree that fiat tokens will always replace physical gold & the trust in said tokens will always eventually be violated.
Gresham's law is not some eternal absolute. It actually primarily applies to sound money vs cheap money with the same face value. People may always prefer to give away trash instead of good money, but producers are not always willing to accept it. Thier's law is the flip side of the coin. The growth of Bitcoin adoption & gradual increase in the transactional use of Bitcoin demonstrates this.
The properties needed for something to be an ideal money do not include physicality. In fact pysicality increases transaction costs to such a degree that fiat tokens will always replace physical gold & the trust in said tokens will always eventually be violated.
Gresham's law is not some eternal absolute. It actually primarily applies to sound money vs cheap money with the same face value. People may always prefer to give away trash instead of good money, but producers are not always willing to accept it. Thier's law is the flip side of the coin. The growth of Bitcoin adoption & gradual increase in the transactional use of Bitcoin demonstrates this.
