The one big difference between Bitcoin and Gold

Swa said:
Performance isn't the same as value.
Click to expand...

The underlying value of an asset class is only one of the things that affects its performance in the market. A lot of the things traded have no value at all.

In any case, while gold may have value, its value is subject to other market factors, including substitutes as a simple example. Just because gold has been useful in the past, does not mean that it is guaranteed to be useful in the future.
 
Ancalagon said:
The underlying value of an asset class is only one of the things that affects its performance in the market. A lot of the things traded have no value at all.

In any case, while gold may have value, its value is subject to other market factors, including substitutes as a simple example. Just because gold has been useful in the past, does not mean that it is guaranteed to be useful in the future.
Click to expand...
Ok fair point. Tomorrow someone may find a way to turn any substance into any substance. That isn't the case though yet so that would itself be speculation. Underlying value is the most important factor. Performance is derived through how in demand that asset is and how accurate it reflects its value.
 
Swa said:
Performance isn't the same as value.


Gold's value is entirely due to its industrial use.
Click to expand...
Nope


10% of gold production throughout the world is for industrial use. The rest is for hording and jewelry.

Silver sits at 50%
 
As far as I can tell, the difference is that there is a finite amount of gold in the world...
 
Park@82 said:
Stupid question perhaps but: What stops them from increasing the limit in future?
Click to expand...

Mathematics. Also, it isn't necessary to increase the limit. Bitcoin transactions are done in fractional denominations. If 1 btc was worth $100000, you could still transact in any amount you needed. The limit is a deliberate safeguard of the value. It's still debatable if there is any real value to btc, however; but it's unarguably grown in usefulness.
 
Park@82 said:
Stupid question perhaps but: What stops them from increasing the limit in future?
Click to expand...

Well, I suppose technically it is possible to change it (hard fork?) and increase the limit but because you'll be messing with the supply side of things and breaking the "promise" of it's scarcity you'll probably see a mass sell off and an exodus of people using it.
 
Swa said:
Then you don't know the history.
Click to expand...
What history? The value is still mainly what we attach to it. Gold's industrial use is very limited. If industrial application was the reason then other metals would be far more valuable.
 
cerebus said:
Mathematics. Also, it isn't necessary to increase the limit. Bitcoin transactions are done in fractional denominations. If 1 btc was worth $100000, you could still transact in any amount you needed. The limit is a deliberate safeguard of the value. It's still debatable if there is any real value to btc, however; but it's unarguably grown in usefulness.
Click to expand...
Any limit on the fractions?
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X