/biz/ - Business & Finance

>>30334776
what value are you storing when you hold bitcoin? all you can do with bitcoin is to move it from point a to point b
you cannot do anything else with a bitcoin, you cannot refine the bitcoin or turn it into a useful product
what value are you storing when you hold dollars? all you can do with dollars is to move it from point a to point b
you cannot do anything else with a dollar, you cannot refine the dollar or turn it into a useful product

dollars == bitcoin

dollars and bitcoin are both worthless things that only have 'value' as long as people are willing to trade them for things that have actual value, like products and commodities
the problem is that people will only accept dollars and bitcoin in exchange for products and commodities so long as they have faith that they can later do the same thing
what happens when that faith breaks down? what happens when people realize that bitcoin and dollars are only PLACEHOLDERS of wealth and not real wealth? then everyone tries to convert their bitcoin/dollars into real wealth (products/commodities) which causes what we call 'hyperinflation'

holding dollars/bitcoin/euros/yens is a game of chairs where whoever holds papers/bits is in constant risk of being left with nothing while those who hold commodities/products are already comfortably sitting on their chairs

let me put it this way - if everyone on the planet dropped their dollars/bitcoins tomorrow, would there be any real consequences? no, we'd save massive amounts of electricity, overbearing debts would be wiped out and poorly allocated capital (zombie companies) would be wiped out
if everyone on the planet dropped their gold tomorrow, would there be any real consequences? yes, without gold we'd be going back to the cave man days, we need gold for all electronics

someone needs to make an app that tracks stock prices and dividends in grams of gold
you should be able to enter how many stocks you own and keep track of how much your portfolio is actually worth (in gold) + how many grams of gold you get in dividend and not how many worthless dollars/euros/yens/btc's you get