Aluminum costs ~$0.05 / ounce while gold costs ~$1.2K / ounce. The disparity is caused not by differences in inherent utility, but by “blind faith,” i.e., people consider gold valuable so it is.
If people can will gold into being worth ~24,000x more than aluminum, why can’t people will Bitcoin into becoming digital gold? And then a global currency? They can, but like tulips, the risk is this blind faith one day evaporates.
The difference between Bitcoin and tulips is Bitcoin may get integrated into digital products the same way gold was integrated into physical products like jewelry.
Is this guaranteed? Of course not, especially since Bitcoin might get surpassed by superior product/technology like Friendster did with Facebook.
Is this not a fair way to reason about Bitcoin’s risk/reward?
