Design defects.
Gold
Heavy, robbers rob, gradual dilution, gets lost by accident or forgetting where where stashed, cost of protecting it in vaults, can't post it safely and cheaply, a 10 cent payment means a minuscule coin, fake gold hard to detect.
USD
Dilution dilution dilution. Cost of transmission, delays in transmission, confiscation by kleptocrats, exchange rate costs, third party needed to store it and move it. If used in foreign countries the dilution is a tax on those countries = no taxation without representation (declaration of independence). Risk of sudden Zimbabwe effect due to political process of dilution and mass abandonment.
Bitcoin
Energy cost to run the blockchain = $2000 per mined bitcoin (or thereabouts), delay in transmission, secret code gets lost, or stolen by stealth, or inadvertent disclosure, panic to zero when competing payment method supersedes it, government attack risk because USD owners will kill it and maybe anyone using it, quantum computing disruption, can't remember secret code.
Mq's digital masterpiece
No problems. Except that I haven't completed it yet so it's unobtainium for now. So I'm using USD and NZD and shares and houses.
Why is bitcoin worth more than ethereum and the many other options?
Mqurice |
