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Comment by freedom123 | Hacker News Reader

Bitcoin, no matter how you word it or rationalize it will always have a root problem and inherent risk...it is backed by nothing. Users today think its usage gives it market value and it can but to a limit. Money (USD) originally (the dollar bill) worked because it was back by gold. A metal that worked because everyone on the planet wants it. That dollar bill was a "check" or agreement stating, this dollar bill represents this much gold thus the value of money. The USA today does not have gold backing its money-- so as you can see we already have a bitcoin and the USA will not allow you to complete with its money - enjoy

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Gold, for all intents and purposes, is also "backed by nothing".

Aluminum was more expensive than gold until a cheap way to purify it was developed. Now we wrap our food in it. Gold is only valuable until the first metallic asteroid is placed into high Earth orbit. Not tomorrow, but probably sooner than you think. reply << Has nothing to do with Bitcoin being back by nothing. Even if gold did lessen in value other forms of metals/currency can take golds place. Gold is specifically a variable for anything however it is "some thing". (the root point).

If gold wasn't used as a store of value its value would be very maybe a hundredth of what it is now: Gold-plated jewelry in our modern era is essentially indistinguishable (even at the level of a physics lab using scales/xrays/etc if need be) from solid gold jewelry. Gold, for all intents and purposes, is also "backed by nothing". << again has almost nothing to do with Bitcoin being back by nothing. Gold is the item of value it doesn't need to be backed, it is the back'er.

Exactly. My point was that "the things people want" is true wealth, gold is just another measuring stick for converting billable hours of work into diapers (or whatever). If Bitcoin is perceived as a superior measuring stick it will be preferred.

I suggest you return to your economic and history books. Gold has no intrinsic value as you would probably call it. It is only because of some VERY distinctive properties that are not found in other metals that gold was ultimately selected as the better store of value available. Its only value comes from a market agreement.

Bitcoin is essentially the same as it replicates the same properties of gold while having a more predictable supply and features that allow it to be used more commonly as a currency, unlike gold.

Gold has intrinsic value because 1: Its rare 2: Its tangible 3: People want it. Look at history and you will see gold wrapped around everyone's neck and fingers. As mentioned before, a currency has to be back by something. Bitcoin is backed by nothing - nothing cannot be something - no matter how much you exclaim - that is the risk of investing any time with Bitcoin. Just because you like the utility of of bitcoin almost has nothing to do with it being a currency. Example - You can have 50 coins of solid gold or 50 zeros on a computer.

Also, unlike Bitcoin, gold remains gold without the need for a constant supply of electricity or technology. It's an element, and part of the reason it worked as a store of value was because "ooh shiny" and zero upkeep.

You are going in an infinite loop trying to equate something (gold) to nothing (bitcoins). Typing zeros into a screen will not equate to a hand full of gold coins. The value of gold or any other metal is not a relevant argument because in a free market you can have competing currencies. Bitcoin could compete if the USA was a free market (its not) and if it was backed by something (its not). Thus the reason why investing in Bitcoin in any manner has risk. The argument with the asteroid doesn't support simply bc the metals will still be around after it hits earth. Your hard drives with stored zeros will be annihilated (much like your premise).

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