Just want to point out that Proof of Work is not the same as "created out of thin air". All bitcoins were produced from consuming energy. There is an actual cost (in electricity) to mine and produce new BTC.
Some other cryptos did away with Proof of Work because they said it's wasteful. Okay. But the alternative is trusting a central authority to manage the ledger honestly, or trusting an elite class who already owns most of the supply to be benevolent, and we know how that goes.
It works for as long as the authority maintains the power to be a credible threat. And even when that breaks down there very quickly arises another authority.
No, it isn't.because it is not made of, or backed by, any physical commodity. Gold is hard money. Prior to some time in 1968 US Silver Certificates were also hard money, because the paper certificate could be redeemed for silver.
It's the hardest money on the planet. It can't be diluted or over produced. It takes work to produce it. Look at the amount of energy, info and time it takes to mine it. It's a store of value.
What makes gold a store of value? It's bc we agree it has value. Think about it.
You used a very specific term initially which was hard money. Bitcoin is not hard money because it isn't made of a physical commodity and there is no physical commodity backing it. It is digital and has zero intrinsic value because it's just bits that make up a digital ledger.
The US dollar is also a store of value and billions of people agree it has value, but it isn't really hard money, unless we're talking metal coins because those are actually made out of commodities.
There are some cryptocurrencies that are backed by gold. These would be hard money.
Bitcoin BAD, Federal Reserve fake money GOOD, both created out of thin air, WTF
There are limited supply of Bitcoins. The limited supply fulfills the Supply/Demand of economics.
The Fed Reserve prints money, to pay off loans. If I attempt to do the same thing, I go to jail.
"both created out of thin air"
it's unfortunate that people don't understand what money is or can be. real money is not 'declared' (US Constitution), it is 'agreed upon'.
Just want to point out that Proof of Work is not the same as "created out of thin air". All bitcoins were produced from consuming energy. There is an actual cost (in electricity) to mine and produce new BTC.
Some other cryptos did away with Proof of Work because they said it's wasteful. Okay. But the alternative is trusting a central authority to manage the ledger honestly, or trusting an elite class who already owns most of the supply to be benevolent, and we know how that goes.
Declaration by armed authority is a good way to get a lot of people to agree upon something.
That only works for so long.
It works for as long as the authority maintains the power to be a credible threat. And even when that breaks down there very quickly arises another authority.
Bitcoin is hard money, it is not produced out of thin air.
No, it isn't.because it is not made of, or backed by, any physical commodity. Gold is hard money. Prior to some time in 1968 US Silver Certificates were also hard money, because the paper certificate could be redeemed for silver.
It's the hardest money on the planet. It can't be diluted or over produced. It takes work to produce it. Look at the amount of energy, info and time it takes to mine it. It's a store of value.
What makes gold a store of value? It's bc we agree it has value. Think about it.
You used a very specific term initially which was hard money. Bitcoin is not hard money because it isn't made of a physical commodity and there is no physical commodity backing it. It is digital and has zero intrinsic value because it's just bits that make up a digital ledger.
The US dollar is also a store of value and billions of people agree it has value, but it isn't really hard money, unless we're talking metal coins because those are actually made out of commodities.
There are some cryptocurrencies that are backed by gold. These would be hard money.