Re:Bitcoin’s Wild Ride Shows the Truth: It Is Probably Worth...
by phyller on Tuesday September 19, 2017 @02:37PM
(#15287532)
I think this is exactly right, but it also shows why bitcoin is actually a very good candidate for a currency. It has every characteristic that makes gold a good currency, and additional ones as well. In the ways that gold is convenient, bitcoin is more convenient. As far as currencies go, I think that the less intrinsic value it has the better it fulfills its purpose. It is not meant to be hoarded but serve as lubrication for the exchange of goods and services. I could go on, but basically I think bitcoin could be seen as superior to gold as a currency, if its value was as globally accepted. But still, I think it is inferior to the dollar. For a truly stable economy we need to be able to control the value of our currency.
It's also worth noting that the volatility of gold production has historically played against its function as a store of value, as fluctuations in its price have had impacts on the larger economy.
All of this is to say that the only reason gold has extrinsic value as money - why so many societies have seen it as money - is because it has natural properties that map reasonably well into the needed functions of a currency. It's not unique among natural currencies, rather just a first among equals.