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RE: My defence of 'The guy that spent 10,000btc on two pizzas', in honour of the anniversary
Although I do see it as possible that bitcoin's use cases may be something other than a day to day currency like what is used to buy pizza.
But what is the purpose of Bitcoin if not p2p cash? Why would it have any value as "digital gold"? What's so unique about it? There are hundreds of better crypto currencies. Why cant they serve as digital gold AND payment, AND utility?
What about the protocol coins like eth, eos, aion, steem etc. Now these are digital gold. they even pay divided, give airdrops etc. Thats what you want to hold.
Sure, we need a crypto for payment..and that was supposed to Bitcoin. Right now, it is not.
why is gold more valuable than silver etc? Via side chains can bitcoin mimic the utility on eth and other cryptos?
As I said it is 'possible' that bitcoin's use cases may be something other than a day to day currency. I didn't say how likely it was. personally my bet is on ethereum.
Gold is more valuable because of scarcity. There is about 17 times more gold than silver, therefore the famous gold silver ratio of 1:15-1:17 throughout history. Unfortunately silver is not valued as high anymore, and the ratio is more like 1:50 today.
Then there is the color of gold. it does not oxidate in the same way and give patina. Silver darkens in color over time. Gold does not.
Also some psychological and historical factors, but most of the reason is golds scarcity vs silver.
Bitcoin is not scarce. Because anyone can make it better, fork it, or just make another crypto currency that is scarcer.
Its the usecase that is important with these things. Sure, we need cryptos to be a store of value as well..but if there is a crypto that has way more utility than bitcoin why not use that as a store of value?
A store of value of what? What is the value that you are storing, is what you must ask.
After the introduction of Fiat currency gold became a store of value because you could keep it out of the hands of the government. And if you had to flee you could bring gold and silver with you to another country and therefore also your some of your wealth.
So it has to have that kind of utility. Nothing is just a store of value because. Its a store of value because reasons. :)
Good point.