|
|
|
|
|
|
by audunw
1918 days ago
|
|
|
Why do people still claim Bitcoin is a store of value? It has none of the properties of a good store of value IMO. - Boom/bust cycles means you’re at high risk of not being able to withdraw without losing most of your value
- There’s no regulation of reserves in other more tangible values behind the currency
- Bitcoin has no value to others not holding Bitcoin. Gold and art still has value to others not holding it. That is, I’d be willing to buy gold or art at a certain price for their practical or esthetical use, not just as an investment scheme. This puts a more solid barrier for how low the price of these assets can go.
- The future regulation of cryptocurrencies is highly uncertain. Just look at India. I have no doubt that other countries will follow. Most likely there will be regulations requiring reserves behind cryptocurrencies. There’s not much reason to think that governments will be cool with printing money with zero reserves in the long term just because they’re printed by algorithms. It’s not allowed for banks, why should cryptocurrencies be treated differently? Bitcoin is a high-risk high-reward investment scheme. A pretty good one so far. Nothing wrong with that. It’s absolutely not a store of value. |
|
|
For esthetical use, wouldn't an inexpensive fake gold work just as well, as long as its appearance was substantially the same? Not many people are interested in buying fake gold, of course, but I think that's a matter of wealth/status rather than aesthetics.
I think the demand for white gold and rose gold also suggests that interest in gold jewelry is largely about wealth/status. Even "gold gold" jewelry is usually mixed with lighter metals in order to intentionally change its appearance. (Of course it's also to strengthen the material, but that could be done while maintaining the approximate color if people truly liked the color.)