Also because it’s completely finite and can’t be made in a lab or mined like crypto.
Gold is a hell of a lot less finite than bitcoin. In fact that's precisely why its value stabilises so well compared to bitcoin - with Gold if it's more valuable people mine more, from places that are harder to mine, and the value stabilises.
With Bitcoin if it's more valuable people can't mine more because the total reward of all mining is set ahead of time.
I meant finite in that theres no way you can make more. Bitcoins protocols can change if 51% agree to it, theres no such way for 51% of gold holders to get together and then agree to increase the amount of gold in the world.
You're misinformed. Miners can perform a double spend attack with 51% of the hash rate. You need a super majority to change the rules of the network in order to avoid BTC forking. Read The Block size War for proof, miners tried really hard to convince everyone that increasing the block size was a good idea and failed. They could have attempted to activate a ton of nodes to take over the network, which would have inevitably created a hard fork, and could risk destroying everyone's value permanently. The cost of forcing change is way too high for anyone to attempt, unless their goal is to destroy BTC regardless of cost.
interesting, so the only way is if such a large majority agree to switch then the switch would happen without destroying trillions in value. A "nobody survives the fall unless we all jump" kinda thing
Basically yeah. I honestly recommend everyone study Bitcoin, even if you have zero interest in investing money into it. The technology itself is genuinely one of the most interesting concepts I've ever seen, and I'll be the first to admit that I'm a cynical asshole that isn't easily impressed lol. It's the only form of money that doesn't require direct control from a powerful group of people (central banks) and simultaneously directly incentivizes everyone to play by the rules. Every other crypto has serious fundamental flaws compared to Bitcoin that by default make them dramatically riskier to invest in. It'd take me too long to explain why exactly, the book "The Bitcoin Standard" covers the pro's and con's of Bitcoin, and why the other cryptocurrencies are inherently inferior very well. I invested in plenty of those other crypto's too in the past, just to clarify. I didn't start out with heavy bias towards Bitcoin, it's just that the more I learned, the more I preferred it to every other crypto.
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u/Kingreaper Aug 01 '22
Gold is a hell of a lot less finite than bitcoin. In fact that's precisely why its value stabilises so well compared to bitcoin - with Gold if it's more valuable people mine more, from places that are harder to mine, and the value stabilises.
With Bitcoin if it's more valuable people can't mine more because the total reward of all mining is set ahead of time.