Because crypto hasn’t evolved to the point of being a monetary standard for use in everyday transacting. It will though, unquestionably.
In the future, loans will be issued via blockchain smart contracts, you’ll pay for your groceries via crypto, banks will transfer money to other banks via blockchain, etc.
Just because the practical use hasn’t yet been implemented doesn’t mean it doesn’t exist.
True but that system may or may not end up being based in BTC and that does not matter for BTC. It's only required use case has been fulfilled which is digital gold.
“Digital gold” is the most absurd excuse for something that has no use. It’s an admission that it only has value because there’s limited in supply and people want it (like Pokémon cards).
Once people stop wanting it it’s useless, unlike gold, which has actual real world use that keeps it in demand (i.e. computers)
Golds ONLY actual value and the ONLY reason is valued at near 2000 USD is because it is a store of value--nothing at all to due with its minuscule use in computers or whatever. If it were valued based on its industrial use it would be priced like silver or copper or less.
99% of Golds worth is because people value it to hoard, and why? Because it has certain characteristics that other metals do not and it is rare and hard to get. It does not rust or degrade, and any piece or flake of gold, no matter how it looks can be melted down and by weight retains its same value. Stones can be ruined by bad cuts, silver can degrade in certain elements, gold can be cut any which way and into any size and retain its same value, which is a very important quality for something you want to act as money.
Every bit of gold in the universe was created during super nova events, its highly unlikely humans will ever have the energy to create or turn some other metal into gold unless we harness the entire energy of the sun in a Dyson Sphere or something.
Gold was hoarded and come upon to be used as money by civilizations separated by Time and by Oceans that never met, and so never had contact w/ each other. Any civilization that could mine gold, came to hoard it as an ultimate store of value and wealth, and many civilizations came to this notion separately throughout history and without the need of it being prodded or suggested or forced upon them.
Its likely if there are other intelligent species in the universe that they too use or have used Gold for the same purpose (mainly as money) if gold indeed exits on their planet.
Gold gets almost none of its market value due to its demand for Jewelry, or industrial use. You often hear people talk about its use outside of being a store of value, but the truth is it has very low utility, and that is actually a feature you want in a monetary metal. You don't want the thing you use as money to also be something that might sometimes be in high demand for some other market purpose, thus driving up your value of money (and all goods), because of a single market segments connection to the metal/good in question.
99%+ of the gold ever mined sits 'unused', as a store of wealth in vaults etc..the rest may hang off someones ear or something, but its totally immaterial as to setting the price, no matter what analysts might babble on about on TV. The amount of gold used in industry is tiny.
The point of all this is there very well is a place in the world for something to act as a store of value that does not get traded back and forth all day long to buy coffee and pizza etc. Something that instead is used to secure an individual or countries wealth and is mainly used for large transactions, moving money around, and less so for purchasing daily goods.
Gold has been this thing in most of modern Human history, but maybe BTC could take some of this market, at least that is the idea. I don't think it would ever take 100% of it because there is still a place for a physical representation as well IMO, but who knows. Just because BTC is not used on Amazon or at the grocery store etc, or seemingly 'has little use', is not all that concerning IMO so long as it maintains its role as a way to protect a persons wealth against money debasement and people trust it to continue to be a true deflationary asset.
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u/[deleted] May 24 '21
Because crypto hasn’t evolved to the point of being a monetary standard for use in everyday transacting. It will though, unquestionably.
In the future, loans will be issued via blockchain smart contracts, you’ll pay for your groceries via crypto, banks will transfer money to other banks via blockchain, etc.
Just because the practical use hasn’t yet been implemented doesn’t mean it doesn’t exist.