And to the posts about who still argue that BTC should not be held as an investment because it has no calculatable intrinsic value, whereas gold as "real value" allow me to explain, (again...)
Bitcoin has no intrinsic value as such, but its value is derived because it’s so difficult to take away.
There are three ways our money can be confiscated:
1. Through monetary inflation, which confiscates the real value of our wealth by stealth.
2. Through the failure of banks and other financial institutions that have custody of our wealth.
3. Through the outright expropriation of our wealth as, (for example, as was suffered by European Jews in the 1930s or in the US when they confiscated gold).
Bitcoin cannot be confiscated by any of these methods. This is one of many reasons why it is superior even to gold, which is immune to inflation and bank runs but can be physically stolen (as Jews and gypsies found out during Nazi Germany and as Americans found out at one point in time when owning gold as a store of value was made illegal, and seized at boarders as many Russian's and Chinese found out when trying leave Russia and China recently.
There are theoretical ways someone could steal your Bitcoin, such as capturing you and then torturing you holding until you surrendered the keys for your digital wallet, but this would be hard work for a government to do on any scale, and in any case there are methods you can do to literally make it impossible for you to be able to provide the keys under duress.
Gold does have uses in industry, but as it no longer backs currencies, the most of its value has come from its role as a hard to seize defense against devaluation from money printing. We can see that during times of inflation (basically a means of effective confiscation of value) became a real risk, the gold price really took off.
Assuming a price of about $500 per ounce, if there were no liquid market and central banks didn’t hold it, gold’s monetary value ($2,000 per ounce) would exceed its intrinsic value for industrial use by four times. Favoring gold over Bitcoin because of its lack of intrinsic value is therefore a mistake because it only factors in 25% of the investment. The rest of gold’s value comes from its network.
The market for non-confiscatability assets is currently worth around $15 trillion and it will continue to grow. Bitcoin will displace gold for this function, because among its many superior qualities, it is harder to confiscate, and this will lead to an increasing and self-fulfilling adoption cycle, which is what we have seen play out ever since BTC's inception.
Now that I have dealt with you all, I still just need to get back to MayDay on the (mis)understanding that money printing leads to growth GDP. I will do that a little later, but am now going to chill for a bit.
