Exactly! People talk about gold having some sort of intrinsic value. It only has value because we humans like shiny objects for whatever reason and the fact that it has the scarcity of a limited supply. Scarcity+ demand creates value. Is it intrinsic necessarily? No. But "intrinsic value" really just translates to human demand or desire for it.
In my view something doesn't necessarily have to be limited in supply to be scarce, the demand for it makes it scarce. Imagine a scenario where someone is buying up all the newly issued coins, then you effectively have a limited supply too. Programmable money is going to change everything we think we knew about money, for example the concept that inflation is bad is going to go away, if inflation of a tokens benefits all holders of that token then its not bad, inflation in our current economy is bad because it benefits only a few individuals.
Well said. Something is only “bad” if it decreases the well-being of conscious creatures.
Gold does have a 5000+ year history as money .. something to keep in mind. I think crypto is great in all sorts of ways (crypto-gold being super exciting), but central banks, royalty, multi-generational dynasties, and any "mega buck" type people or institutions all collect and covet gold. It is also used in electronics and all sorts of other applications, silver even moreso. I believe proper portfolio includes both crypto and pm's, for different reasons.
Yes, but do you agree it’s still just a proxy (though an historically reliable one) for what human beings generally decide (in the moment of transaction) is valuable?
I could link to Mark Dice videos where he offers people a bar of silver or a candy bar and they chose the candy bar, but I wont.
Yes,I agree with this. Know the video too - classic.
Actually gold and certain other metals do have intrinsic value based on their use in materials/products/tech...for example gold has special electrical properties and is used in many areas in the electronics & semiconductor industries where it provides superior performance (same goes for platinum)
Yeah I guess that's what I'm trying to say, it has value because we use it and therefore give value to it. It's kindof a semantic point, but my point was just that "intrinsic value" isn't really a thing, although value certainly is.
It has industrial use, sure, which means others have a higher likelyhood of saying, “Yes, that’s valuable to me so I’ll pay X for it.”
To me, it’s still just a proxy for how others will decide financial value in the moment of transaction.
I will vote for you sir @lukestokes
Thanks!