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RE: Crypto Dives AGAIN? Trading and Some Warnings

in #cryptocurrency7 years ago

Nice comment and rationale behind your ideas.

I too have my doubts about the "Bitcoin is the gold standard of cryptocurrencies" argument... While Bitcoin and gold both have a finite amount in existence, what makes gold different and in my opinion more valuable in the sense of scarcity, is that it can't be recreated (i.e. Bitcoin hard forks or other alts that use the same underlying code with added benefits or improvements). Gold is valuable because there is a limited supply— yes—but it is also valuable because the elements that comprise it are rare in the universe and is incredibly hard to create due to the extreme energy-intensive process. If you create something with the same chemical characteristics as gold you aren't making something different, you are making gold... that is why it cannot be replaced and deserves its status as a backing of fiat currencies.

While I have no idea if Bitcoin is going to $1,000,000 or $1,000 in the future, in my opinion, it won't be the gold standard forever. At the end of the day, it's technology and tech always improves, while precious metals do not.

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"Bitcoin is a store of value". An excuse which holds no value.

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