Comment: The value of gold

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The value of gold

is not because it actually has a value, but because people use it to store wealth. Gold is pretty much useless except for making some pretty jewellery and few technical applications. If no one used it to store wealth, the value would be much lower. Same as bitcoin, because it's a reliable form to store wealth, it has as much intrinsic value as anything else. It's based on it's scarcity and how easy it is to use as a currency. Nothing has value except the value of it's demand and supply. Dollars have value because people demand them and use them to store wealth. However, you have to trust a central bank to trust the dollar system, to have faith in this institution much believing in the institution of organised religion- you have to give away your power. However, with bitcoin there is no institution to believe in, you have certainty that the supply will increase at a set rate and then stop and no one can change that. You don't have to believe in any central banks. You also don't have to feel guilty that children in africa are being exploited to mine your gold. Sure it's not physical, but that doesn't mean it's not real.