lack of inherit value. Gold for instance is a substance that can be utilized in the real world and has unique properties. Granted though its value is most in theoretical money uses. It does have a floor value though in its physical nature.
I’m no Bitcoin fan, but the notion that currency has to have inherent value has been dead for almost a century.
Currency as used by any modern state has no connection to any particular commodity, including gold. And gold’s “inherent” value, rather tautologically, is whatever the market might pay for it right now. When the Spaniards looted America in the 1500s, the value of Spain’s gold-based currency crashed due to oversupply and left Spain in a state of hyperinflation. There was (and is) no floor value for gold, or for anything else.
The whole idea of intrinsic value is flawed. In economic terms, the only value anything has is what someone will pay for it.
lack of inherit value. Gold for instance is a substance that can be utilized in the real world and has unique properties. Granted though its value is most in theoretical money uses. It does have a floor value though in its physical nature.
I’m no Bitcoin fan, but the notion that currency has to have inherent value has been dead for almost a century.
Currency as used by any modern state has no connection to any particular commodity, including gold. And gold’s “inherent” value, rather tautologically, is whatever the market might pay for it right now. When the Spaniards looted America in the 1500s, the value of Spain’s gold-based currency crashed due to oversupply and left Spain in a state of hyperinflation. There was (and is) no floor value for gold, or for anything else.
The whole idea of intrinsic value is flawed. In economic terms, the only value anything has is what someone will pay for it.