Quote:
Originally Posted by GGG
Gold is Gold because it is gold. Gold could be rendered worthless by a loss of faith. These are the exact same arguments made thousands of years ago when gold became gold. Why would anyone want gold. People want gold because it is gold. Gold is the skin of the Gods not a holder of value.
The question is can Bitcoin replace gold. The answer is yes it could. To say never just misunderstands what Bitcoin is.
Your suit argument is also true regardless of the price of gold happens to be. Because the definition of nice suit gets to change to make your point and you get to cherry pick years. In 2000 Gold was $400 per ounce, $2000 in 2012 and $1100 in 2016. I was not aware the price of a suit changed that dramatically this century. $100 in 1900 is 3100 today gold was $20 an ounce making it worth about $600 today. So if I bought gold in 1900 I would have a have made 90-100x return vs 30x for inflation. By your argument that is not an inflation hedge.
It is certainly questionable whether in the next 25 years it stabilizes or not or is replaced. It’s kind of funny that the threats like hacking and being replaced with technology have similar analogs to gold in theft and mining tech resulting in cheaper extraction.
I think it’s weird that people are so keen to dismiss Bitcoin with absolute statements
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The reason Gold is gold is because nothing else can be gold, other metals have different properties but only gold is tarnish free, infinitely maleable, conducts electricity, reflects heat etc, any and all bitcoins can perform exactly the same function as bitcoin, I suppose the equivalent would be if all metal on earth was exactly the same as gold.
Of course there is always the obvious other difference that Gold has a purpose beyond its ability as a store of wealth, almost all of the worlds Gold is performing a function seperate to storing wealth, jewelry, electronics etc while at the same time also storing wealth.
I also wouldn't underestimate the inherent psychological value in owning something that actually exists,