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by Ma8ee 1792 days ago
What, that they have 6 million active users per month? Is that supposed to be a high number? And those are the number of people who trade with bitcoins, not people actually “using” them for anything.

Gold is also volatile, but not nearly as bad as cryptocurrencies. And since gold actually has uses, it exists at least some kind of backstop for its value. I expect Bitcoins value to eventually become zero.

So how is Bitcoin doing better what gold is doing?
1 comments
coralreef 1792 days ago
- Bitcoin has a better stock to flow ratio

- Bitcoin is cheaper to custodially secure than gold (no warehouses, security)

- Bitcoin is nearly impossible to counterfeit

- Bitcoin is cheaper to transfer (try flying gold to another country)

- Bitcoin travels magnitudes faster

- Bitcoin is more transparent, can prove its existence via proof of reserve.

These are the advantages of being digital. But only since the blockchain structure and decentralization have we ever had a provably scarce asset, it always previously depended on a trusted party.

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freemint 1790 days ago
Yeah but Bitcoins expected value is 0 as Nassim Taleb recently argued here https://www.youtube.com/watch?v=HDnwT5h472c . Gold has uses in industry, art which give it a positive value.

And BitCoin also has a often unacknowledged effect of planetary centralisation making crypto mining on other planets in our solar system infeasible.

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coralreef 1789 days ago
The market for gold's practical use pales in comparison to the market for its monetary use. Remember that central banks still hoard billions of dollars of gold bars in safes guarded by soldiers. Gold is a $12 trillion dollar market cap, and not because people love using it in electronics or showing off bracelets.

All value is human made. A painting is not worth $800m until someone decides to pay that much for it. Fiat dollars are only worth anything because we trust that other humans will take it from us in exchange for stuff we want. When we stop trusting this system, it ceases to have value. This happens for example in hyperinflation events where whole currencies die.

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