Ninjastic
PostEdited versionsQuotes to this post
Post
Topic
Board Economics
Re: Tulip Mania 2.0
by
Wind_FURY
on 30/09/2021, 12:23:50 UTC
Quote from: Betwrong on September 29, 2021, 10:43:43 AM
Quote from: TheGreatPython on September 27, 2021, 07:44:49 PM
Quote from: Betwrong on September 27, 2021, 08:22:21 AM
Quote from: jaysabi on September 23, 2021, 06:31:40 PM
But now you've given an example of gold's intrinsic value- use in jewelry.  The value comes from it's intrinsic properties; not people speculating on it's value, but actual use.  That's not where bitcoin's value comes from, nor NFTs.  In both cases, that value comes exclusively from speculation on the future value of them, based solely on a mass assumption of future worth.  To differentiate, gold as a store of value is completely arbitrary, just like bitcoin.  But gold still has a demand outside of store of value (the intrinsic value of gold) and bitcoin and NFTs do not.  That's the difference between bitcoin and gold and why there's no difference between bitcoin and NFTs.
And this time I'm really missing your point. Didn't I show that gold is considered valuable in jewelry only because many people believe so? Now, if many people believed that possessing  1 Bitcoin was necessary for your high status, the price of BTC could rise to hundreds of thousands USD only because of that. Why? Because there are more millionaires in this world than Bitcoin max supply. Wouldn't this be an intrinsic value of Bitcoin?
It all comes down to holding it in your hands and the community belief. Gold has been around as a symbol for 2000+ years minimum, probably longer but I am not really well versed in history so it is probably 3000 years or even more. So, that means gold has been around for millennia and we are talking about bitcoin which has been here for a little over one decade and it of course doesn't get to be as valuable as gold for now.

It may become one in the future but we just do not see it for right now. Do not compare things that are physical and digital because people will always say "but can I hold it" as an argument.

I know that never makes sense and something that you end up trusting more digitally could be more fragile physically so it is better digitally. However that doesn't mean that people will not keep saying the same thing over and over again.

They most likely will, but if we have good arguments we should provide them, and maybe one day they will be able to change their mind. I believe we are entering an era where digital things are gaining more value year by year, and many physical things, which were valued for centuries, are losing their value.

Look at the Inflation Adjusted Gold Price, for example:
Quote from: https://goldprice.org/inflation-adjusted-gold-price.html

It turns out that gold is actually losing its value since around 1980.



A link to an article explaining how to calculate Inflation Adjusted Gold Price.

https://seekingalpha.com/article/265225-determining-the-true-inflation-adjusted-gold-price

That chart is right, Gold value during the 1980’s does have more value and than Gold during 2015, but the article valued Gold at $8,194 during 1980’s and $3,604.22 during 2011, the year it was posted.