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by jimbob21 735 days ago
How can gold exist without a state to insure its value?

Simple: demand.

2 comments

The value of Gold is based on scarcity dictated by the laws of Physics, and on people believing it has value. The fascination with that yellow gleam goes as far back as recorded time. The fact that it's easy to work with (malleability, ductility, etc.) probably played a part as well.

The value of Crypto products is based on scarcity dictated by the computationally intensive nature of certain algorithms, and on people believing those products have value.

> dictated by the computationally intensive nature of certain algorithms

You mean math?

Gold isn't a currency. Gold coins can be, but then you either have to trust the mint or you carry around a scale. The key is being fungible and it's the state that promises that a dollar bill is equal to any other dollar bill.