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RE: Gold continues to strengthen its hold as the best store of wealth as creation of more and more cryptocurrencies saturate market

in #money7 years ago

Well, no. When you buy a share in a company, you're buying something that creates value and return to you the shareholder. When you buy crypto, you just buy an asset that's supposed to have value for the exchange of goods and services.

Crypto can create value in some of the more advanced applications (e.g. smart contracts) but even there it's minimal.. value comes from the creater of the contract and the services behind it.

Crypto itself, as far as I see it, is more analogous to gold or fiat currency. The difference is that the former has thousands of years of history being a unit of value for transactions and the latter the backing of every major state in the world. There are lots of other things I could get into too (e.g. scarcity of gold providing some stability to it's price) but won't.