This is another common misconception: that the value of Bitcoin/gold is *purely* social. A big part of it is social, but to get there, the monetary asset needs to have the required properties first. Most importantly, unforgeable costliness. Other reqs exist such as portability.https://twitter.com/belowsearcher/status/1046486502954463237 …
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Assets who meet the required properties compete to become money, and over time tend to reduce to one single standard, due to strong feedback loops & network effects. cc
@real_vijay who has written a lot on the subject.Show this thread -
> I don’t get the gold comparison; gold is scarce, but energy isn’t. The scarcity of Bitcoin comes from the high energy requirement to break the 21-million-bitcoins limit. The same way gold is scarce because it would take a tremendous amount of energy to synthesize gold.
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