- Mar 31, 2010
- Instant Gratification Land
My only point is that bit coins are like musical chairs. As long as you get a chair then great, you can sell the empty bag to another "investor" and all is good.
If more Au than anyone could ever want is readily available in newly mined supplies, what would that mean for the value of your Au holdings? The only reason a scrap/refining market exists is because we can't get enough of the new stuff.
...and even in bitcoins case there is in fact something in the bag. BTC is comprised of code and even just code is something.
All I'm sayin' is if you ever want to make money on anything, you better hope there's not enough "chairs" when you need to sell yours.
...be it Au, Ag, a house a car or a bitcoin or even your own labor. Scarcity is what drives the value of something. Lack of scarcity kills that value. BTC is designed with scarcity at its root.
Remember, everything has a value based upon supply and demand. Even dirt's cheap or even free....until you need a truck to deliver it.
...and the only things that have true intrinsic value are things you can eat, live in, or otherwise directly use and/or consume. After that comes things that can be used to get those things. Like money, Au/Ag or even bitcoin.
The fact others also place value in something does not mean that value is intrinsic. Only that a sufficient quantity of people agree it has value to them.
BTW, I'm looking at Au here. Beyond its direct industrial uses, it only holds value as money because people generally agree that it does.
If, for example, a method is ever devised to fabricate Au in large quantity, do you really think its history of being used as money will preserve its so-called "intrinsic" value?
Also, why do think there is a paper Au market? There can never be a paper BTC market. If one wants it, one must actually acquire it. A paper Au/Ag market allows more to be bought/sold than exists and is what many here greatly complain about. BTC, while not perfect, is the Peoples answer to the rigged system.
The People tried making Au/Ag coins to be used as honest money but were shut down, prosecuted and vilified. Unfortunately the only option is create something digital instead that does not have a central control that can be targeted for attack by the PTB.