Comment: Gold/silver acts as a unit of

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Gold/silver acts as a unit of

Gold/silver acts as a unit of account, a store of value, and a medium of exchange.

Name me one thing that couldn't serve those three purposes...
You can't because ANYTHING can serve those three purposes.

Cows, yams, grain, gold, silver, beads, paper money, etc, etc; all of these have been used in the past.
The question is which things have properties which make them better suited for functioning in those capacities.

I already alluded above to the reasons why bitcoin is a viable currency, let me be more spceific.

Gold and silver are just commodities, but they were used as the currency of choice for hundreds and hundreds of years. Why?!

Gold won't die after a few years.
Gold won't go rotten.
Gold's value won't diminish if you forget to feed it.
Making change with a smaller coin is easier than making change with a smaller cow or half a cow.
It has a reasonably predictable inflation rate, or at the very least one divorced from politics.
Its more convenient to carry coins in your pocket than cows.
Its not easily traced by the government.

Lets take a look at Bitcoins:
Won't die after a few years.
Won't go rotten.
Won't diminish in value due to neglect.

Why they're better than gold:
You can subdivide them into insanely tiny fractions so making change is not an issue.
Its inflation rate is completely divorced from politics. In fact there can only be 21 million of them in existence at any time. And it will naturally begin to deflate within the next 50 years or so.
Its more convenient to carry in your pocket than gold (it weighs nothing).
Its not traceable by the government.
You can send it to people over the internet. IE you can carry out online transactions without having to mail gold to someone or use a bank to transfer the money.

Why they're worse:
They don't have a few thousand years of history of acceptance behind them.
Some people like you won't accept them.

Those last two facts can change. It only takes time.

You use dollars despite the fact you don't want to because the market and government have dictated that you need to use them for most transactions. The government can't force you to use bitcoin but you will use bitcoins if the market dictates that transactions in bitcoins are preferred.

So in summary:
Bit coins can be used to purchase things. So they're clearly a medium of exchange.
To purchase things with them... goods clearly have to be priced in them so they're clearly a unit of account.
They inflate predictably, and will eventually deflate, they clearly have the makings of a good store of value.


if the government declares it illegal to own gold and silver, does that mean that I won't keep holding it? Does that mean I can't trade it for real estate or food or guns/ammunition when your dollars and bitcoins are worthless?

Gold is physical. It can be confiscated. You need to transport it to someone you want to do business with. You have to do that by physically moving it. The government can catch you doing that and take it.
Bitcoin is not physical you can hide it more easily, and the transactions are impossible to intercept and trace. In summary if gold is outlawed (as it has been in the past) it CAN and WILL be taken, and I, and the majority of the players in the marketplace, won't do business in it as the risks are too great. Bitcoin alleviates the risks and is more convenient.


Look up Mike Maloney, Peter Schiff and and listen to them.

Go read Hayek, Mises, Milton, skip the modern day guys go straight to the source.
I'd recommend a monetary history of the united states.