- Jun 20, 2013
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That's the way everything works. If there's enough "chairs" for everyone who wants one, where's the value in holding a "chair"?
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?
I know, in a million years we'll be able to send a ship to outer space, fly to a huge asteroid, stop the asteroid while we mine it so it doesn't get too far away (or mine it instantly), gather the gold, then fly the ship back, melt and refine it for $.01 in 2016 USD. That my friend is called science fiction.
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.
Uh, no there's nothing in it. You can argue the technology is useful (cheap electronic transfers), but the bitcoin itself is an empty paper bag.
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.
Wrong, I only produce one turd a day (very scarce), but it's worth absolutely nothing. Or would you like to buy one of my scarce turds?
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.
Wrong again. The dirt is still cheap. I'm paying for labor and transportation costs. You talk as if you know something about economic theory but every time you open your mouth you say something wrong.
...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.
Wrong. Au/Ag are not just shiny paper weights. They're of great value in industry, in fact the computer that tracks your paper bag bitcoins requires Au/Ag. They are also of value for their use as decoration or jewelry.
Bitcoin has no value whatsoever except for the perception that another person will take them as money in the future. You can't build something with a bitcoin or look at a bitcoin. It is not a commodity like Ag/Au.
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.
It's universal and has been throughout history. It's ingrained in our DNA somehow. I could go to a tribe in a rain forest somewhere that has never been exposed to modern society or seen Au and I'll bet I could trade a gold coin for something such as a hut or food. It's in our DNA. Created to be money and valuable. It will always be money.
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?
People have tried that for thousands of years. It's called alchemy. It ain't ever gonna be cheaper to make it in a lab than it is to mine it.
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.
What are you talking about? It is already possible to short sell bitcoins. That's the very definition of a paper market. You're selling something you don't own. You don't know much about the very topic you're purporting to be an expert on.
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.
Let me tell you a secret, the reason there have been attempts to confiscate it, is because it's real money. It's readily available and legal to own in the US now, so that excuse is not applicable.
LOL that's "our only option" to create a empty digital paper bag and put our trust in it? I'd feel safer owning cans of food or ammo. No central control? Earlier in this thread there was evidence of big bank bitcoin manipulation exposed.