Yes See the *tremendous* amount of capital that constantly recycles through oil futures, that has no intention of *ever* accepting delivery It's called a Menger goodhttps://twitter.com/RyanSAdams/status/1029380024674275328 …
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Doesn't stop a shit load of people from storing their wealth in oil
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This is more so because we don’t have a good low entropy SoV. People are forced to concoct a ridiculously complex portfolio w. a myriad of different assets to diversify fiat currency risk. In a world of sound money a lot of this goes away
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Gold is pretty sound and yet people still store wealth in all kinds of non intuitive assets like oil
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The problem isn’t with gold but with the current landscape of monetary assets. Competing currencies is not a stable equilibrium. Either gold will go up a lot or down a lot. For the time being, it’s not a great vehicle to *store* all your savings in and close your eyes
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If an equilibrium emerges with a single dominant SoV (like gold was for much of history), the monetary premium of assets like oil, real estate, art and maybe even stocks will fall.
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Have you come across any data that shows this?
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It's trivial to cap the supply of a cryptocurrency as well. Just a few lines of code. I don't think fixed supply is quite the moat maximalists assume it to be.
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fixed supply isn't a moat in and of itself, but coupled with 9 years of maintaining originally set-in-stone supply curve, it increasingly strengthens. Every 10 mins Bitcoin MP becomes more trustworthy this is in contrast with ETH whose monetary policy, 4 years in, is still TBD.
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I am a big believer in Austrian Econ and Hard money and prefer BTC's hard cap, that being said, things don't always work as they should, USD has held up pretty well as an SoV without a hard cap, under constant inflation. Demand increasing over supply as other SoV's look worse.
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Not the right comparison. 1. USD is backed by guns. 2. All other fiats backed by guns have been managed worse, giving usd an edge 3. USD benefits from path dependency (historic US advantage of a free market system and hard money past). None apply to cryptos
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