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0 pointswyager9y ago0 comments

> You can quantify how much the value of gold is through actual physical use value

Yes, and it's very very small.

https://www.quora.com/If-gold-werent-used-as-a-store-of-valu...

The vast majority of gold's value comes from its utility as a fungible, divisible, verifiable value store.

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matt_wulfeck9y ago· 2 in thread

People have been desiring gold for longer than documented history. It's beautiful to look at. It has inherent value, which is evident in the fact of it's desirable beauty and long history.

Even in worst case scenario that it's comparable in value to dull, metallic gray Rhenium for its industrial applications: $42 an ounce is better than BTC's worst case $0. You'll always be able to exchange gold for bread.

wyagerOP9y ago

> People have been desiring gold for longer than documented history.

Yes, it's been around longer than Bitcoin. Not really sure what you're trying to indicate there.

> It's beautiful to look at.

Which is responsible for a very small fraction of its value. Most gold is not used in jewelry.

> It has inherent value

There is no such thing as "inherent value". Humans assign value to things. Most of the reasons that humans assign a high value to gold (fungibility, divisibility, unforgeability) also apply to Bitcoin, only more so.

matt_wulfeck9y ago

I find a lot of engineers approach this topic so objectively. "Beautiful to look at? Pfffah! That doesn't compute, therefore it's incorrect."

Here's some additional benefits of gold:

* gold requires minimal knowledge to protect. To steal it you have to physically break into their home. They may be armed and they may kill you in the process. (My father can't protect his computer to save his life, but Lord save the poor soul who breaks into his home!)

* it's historically been very easy to trade gold for food.

* gold is worn on the body to show status and to look good. (Of course a software engineer is above such lofty extravagances which simply don't make sense)

* gold has industrial applications.

* you can look at gold and hold it in your hand. It's quite shiny and surprisingly shiny.

None of these things apply to BTC. Gold has inherent value because people inherently want it. Isn't 10,000 years of people digging it out of the ground evidence of that?

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