Most individuals evaluating these property give attention to historical past or "really feel," however the one metric that really issues for a long-term hedge is provide elasticity. Gold and Silver have been the usual for hundreds of years, however they share a basic flaw: when the worth goes up, mining turns into extra worthwhile, which ultimately will increase the provision and dampens the worth. They’re comparatively scarce, however not completely scarce. Bitcoin is the primary and solely asset in human historical past with a superbly inelastic provide curve. The protocol doesn't care how excessive the worth goes or how a lot vitality is spent; the issuance stays fastened. This forces the worth to do 100% of the work to succeed in equilibrium when demand shifts. When you add the truth that $100M in BTC is auditable by a easy node and strikes immediately, whereas $100M in Gold is a logistical nightmare with excessive counterparty threat, the rotation from analog to digital turns into a mathematical certainty. Analog shortage was an awesome defensive software for the bodily period. Digital shortage is the offensive software for the present debt-based actuality. Curious to see if anybody right here nonetheless finds a logical motive to carry bodily metals, or if the transparency of the community has made that total mannequin out of date for you.
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