Post
Topic
Board Economics
Re: Gold vs bitcoin
by
5grainsilver
on 18/07/2011, 20:32:06 UTC
They are not comparable.

Gold has industrial and aesthetic use.  It has real world use outside of just being a store of value. 
Bitcoin is nothing.  It has one use, and that is to exist and be exchanged. 
 
Gold is unique.  There is not a system or method that can be used to create another metal that is like gold with its properties and scarcity.
Bitcoins themselves are unique, but they method used to create them can be duplicated by millions of computer savy people around the world.  Just change the name and start over.  IE Namecoins.

A good metaphor here is my feces.  Every time I produce one it is unique(scarce), but that by itself doesn't give it value.  It also takes me some good healthy food and nutrients to produce it.  But guess what?  That is my problem.  I can't convert that feces back to food so why would anyone care that it took me a $50 filet mignon to make it.  Doesn't matter to them.  That is kind of how I see bitcoins lol.   

Trying to compare bitcoins to gold is living in fantasy land.