Rarity and expense probably contribute to the price of gold.
Scarcity is front and centre when it comes to the price of gold. It's ludicrous to suggest otherwise. Look at any study that examines the essential characteristics of a store of value and scarcity is at the top of the list.
But it's appearance in jewelry and industry is very important.
As jewelry it is clearly being used for the most part as a store of value. The industrial use cases are peripheral. I've cited data from the World Gold Council (WGC) previously to back this up.
I wonder if people who compare BTC to gold have every seen gold jewelry or ornaments?
I wonder if the people who have gold gathering dust and stored professionally in vaults around the world have ever seen it either?
Your reasoning would have had you buying tulips during tulipmania.
Again, we've been over this. Like his Dukeness, you have never been objective enough to examine the facets of bitcoin that are positive in terms of use as a store of value and a medium of exchange. Tulipania is in no way relevant to this conversation as it doesn't fulfill any of those characteristics.
On the contrary, I love Bitcoin. If people are prepared to pay $15,000 for something which is worth nothing, I can make money out of it.
Thank you for your service Brendan. Because of the irrational stance that you and others take at the earlier stages of the adoption of digital assets, it allows opportunity for others to benefit and capitalise on that.
But if people didn't like gold in jewelry would it still be that expensive?
The price of gold is a construct of its use as a store of value - and not industrial uses. Its use as jewelry is that of a store of value for the most part also (as confirmed by the World Gold Council). If this wasn't the case, why would its price far, far exceed its production cost?
I think the most likely thing is Bitcoin is around in some form for good , its price stabilises and it becomes a more mainstream store of wealth . I absolutely do not foresee it going to zero or worthless . Therefore I'm going to take a stake in Bitcoin.
That price volatility dissipates over time as adoption and overall market capitalisation expands is entirely logical.
The thing is why try to compare Bitcoin to something else ?, it's not gold ,its not art , its not digital gold and its not tulips. So these debates end up comparing it to gold and they go around in circles about Gold having value and been used in industry or whatever. You can't compare Bitcoin to anything else its a new technology I do think it has a place and offers an alternative to government backed money.
If people are not prepared to compare the general characteristics point by point against FIAT money or Gold, there's little chance they will be open to identifying the value add in terms of its ability to be transferred digitally and uncensored on a peer to peer basis, it's superior divisibility and its locked in fixed supply.
52 week high 13,796 52 week low 4,106
This is meant to be a currency for heaven's sake, a store of value.
As well you know, this has been explained to you umpteen times. You don't roll out a brand new asset starting from ground zero without price volatility. That volatility declines as its overall market capitalisation increases and as the price discovery process and Bitcoin adoption progresses. To that very point, https://en.longhash.com/news/data-shows-bitcoins-price-volatility-has-been-declining-over-its-10-year-history (the data) shows that Bitcoin's price volatility continues to decrease over time. Meanwhile, a conventional asset that has been front and centre of the old economy over the past century (Oil) has been far more volatile than Bitcoin this year - yet you don't get in any way animated about that.
Its volatility doesn't negate it from being a good store of value unless the market participant has the lowest of time preferences. At the end of the day, it has been the best performing asset of 2019, of the entire last decade and it is currently the best performing asset of 2020.
As a means of exchange/currency use, volatility is a drawback - but volatility will decrease over time and usability will improve dramatically. At that point, its performance improves considerably as a currency.
But that comment suggests to me that you are trying to convince yourself to be part of the cult.
Again with the emotive and inflammatory 'cultist' jibe. This from a guy who - as part of these discussions has never once been objective enough to outline the aspects of Bitcoin which are positive and rarely explored the deficiencies in the FIAT money system.
That's what surprised me about Fella buying BTC. It's clearly worth nothing. And he has been taken in by the mania.
Once again with the 'mania'. Where is this 'mania' to be found? There was market over-exuberance in late 2017 but we're a couple of years on from that.
How exactly would Duke pay for these pints in Bitcoin?
In this instance, quite easily if Dukey agrees to it.