Quote:
Originally Posted by GGG
The thing is though there is finite amount of utility being done in the world. So regardless of if you print dollars, mine gold, or create new coins you are at some point constrained by the utility of the world.
So adding more currencies into the crypto space dilutes the value of bitcoin in the same way all precious metals are linked in value through varying multiples.
So the bitcoin supply being limited matters only so far as alt-coins are trusted.
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I don't think I'm understanding the first part. Are you saying the value of bitcoin is limited by what people and/or whole societal economies are willing and able to pay for it among all the other available stores of value?
The second part about how adding more cryptos to the space dilutes the value of bitcoin, in some ways this is true and that's not necessarily a bad thing. Maybe the new crypto has some neat innovative utility that uses blockchain ideas to solve a problem or make something better. Maybe the new crypto is a ridiculous rug pull and if that's the case, hopefully it fails miserably. Using your precious metals analogy where all metals can be valued by its worth in gold, if I just invented a new precious metal and said it's value is 1 GGG Metal = 10 Gold or whatever, it wont effect the price of gold at all. The market will decide if GGG Metal is any good and value it appropriately while the big institutional money stays away from this new metal for years, if ever.