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0 pointssprafa8y ago0 comments

one word: gold

no reason it stores value outside of the fact that we all agree that it does, and we all accept it for curreny. Bitcoin is at that point. It's turning into digital gold.

I agree with the original commenter. Looking at Bitcoin as a currency with terrible UX kept me from investing for the past years. Now it's going past inflection point - it's a store of value that will be acceptable everywhere soon.

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wpietri8y ago

You'd do better to spend a minute Googling before saying something so definitive. The use of gold for jewelry and industrial applications outweighs the investment use of it:

https://www.statista.com/statistics/274684/global-demand-for...

Gold has been valued from time immemorial for its unique aesthetic and practical properties entirely aside from its value as a currency.

That's clearly distinct from, say, paper dollars, which indeed have value only because we agree that they do (and because they're backed by the robust efforts of a government, of course).

monort8y ago

You are looking at the wrong metric, it seems like they count only transactions, not holdings. Only Fort Knox holds over 4000 of metric tons of gold.

wpietri8y ago

Sorry, I'm not following. The thing that makes a store of value useful is stable demand. This metric demonstrates stable demand. Holdings are irrelevant.

As an example of the difference, look at oil or bananas. Demand for those is significant, but because storage is inconvenient, holdings are low compared with total commodity flow.

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0 pointssprafa8y ago0 comments

one word: gold

no reason it stores value outside of the fact that we all agree that it does, and we all accept it for curreny. Bitcoin is at that point. It's turning into digital gold.

0 comments

wpietri8y ago

You'd do better to spend a minute Googling before saying something so definitive. The use of gold for jewelry and industrial applications outweighs the investment use of it:

https://www.statista.com/statistics/274684/global-demand-for...

Gold has been valued from time immemorial for its unique aesthetic and practical properties entirely aside from its value as a currency.

That's clearly distinct from, say, paper dollars, which indeed have value only because we agree that they do (and because they're backed by the robust efforts of a government, of course).

monort8y ago

You are looking at the wrong metric, it seems like they count only transactions, not holdings. Only Fort Knox holds over 4000 of metric tons of gold.

wpietri8y ago

Sorry, I'm not following. The thing that makes a store of value useful is stable demand. This metric demonstrates stable demand. Holdings are irrelevant.

As an example of the difference, look at oil or bananas. Demand for those is significant, but because storage is inconvenient, holdings are low compared with total commodity flow.

1 more reply

j / k navigate · click thread line to collapse