Re:Goldman Sachs Report Explores Use of Bitcoin as Currency
by sethgecko on Tuesday January 16, 2018 @09:31AM
(#16158392)
Gold's intrinsic value is perhaps 10% of it's current value. You are not holding gold because you want to make jewelry, you are holding because of it's perceived value and it's scarcity.
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Re:Goldman Sachs Report Explores Use of Bitcoin as Currency
by dsacco on Tuesday January 16, 2018 @11:51AM
(#16159598)
Absolutely, I agree with you. The speculation around gold pushes significantly higher extrinsic value onto it. I'm just making a point that it has a floor of intrinsic value as well, even if that's smaller than the speculative activity.
Re:Goldman Sachs Report Explores Use of Bitcoin as Currency
by ThomPete on Tuesday January 16, 2018 @12:04PM
(#16159742)
No it has no floor that can't go away (just like it have no ceiling)
The only way to determine it's value is to see if people want to pay for it. Just because they want to pay for it right now doesn't mean they want to do it tomorrow.
And thats exactly why the idea of intrinsic value should die. It doesn't exist. There isn't an absolute floor only a market determined one .... just like with bitcoin.