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Economic value is always subjective. Dump the "intrinsic value" talk. Gold doesn't have intrinsic value, but it has certain intrinsic properties (and a relatively limited supply) that *therefore* make it valuable to humans. Bitcoin is the same in that respect: it has certain intrinsic properties (and a mathematically fixed supply) that *therefore* make it valuable to humans, and therefore it useful as money.

Side note, I don't think we should talk about moral "values" as if they too are subjective, dynamic, and situational. They aren't. Nature is normative, morality too is normative -- "essence precedes existence." IMO, we should speak about "virtues" in the moral sphere, and reserve "value" for the economic sphere. Someone speaking about "their values" it's awfully similar to my mind as them speaking about "their truth," and it's po-mo nonsense.

#economics #virtue #SometimesCurmudgeonly

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MapleTreeFarmstead 2y ago

I would argue that gold has less intrinsic value than almost every other metal, even the other shiny metal rocks.

It has a lot fewer uses than most other metals. But really this is precisely why it made good money for so long. If it was useful you'd, you know, use it.

freeborn | ἐλεύθερος | 8r0gwg 2y ago

As a former GoldBug, I'd have to challenge that 😁 a bit. Unlike nearly all other *metals* (it's not a rock, though rocks can contain gold), gold does not corrode. That makes it extremely unique in our environment. (Silver is similar in this respect.) Gold is highly conductive and malleable so has many industrial uses. But, perhaps more so, its unique color + weight + luster have always made it attractive to humans for ornamental (or even religious) purposes. (I'm still a proponent of Mises' "regression theorem" of the origin of money...at least up until bitcoin...haven't quite figured that one out yet, but Robert Murphy [I believe] has done some writing on it at Mises.org). 🤙🏻🤙🏻

MapleTreeFarmstead 2y ago

Ok so it was a busy day in the fiat mines but wanted to circle back around to this.

I didn't necessarily mean it has no uses whatsoever, just fewer uses than most other metals, while still retaining the values that you listed which means also that you can store it almost indefinitely and it will still not degrade. This means you can rely on it holding its value. This is also another aspect of what made good such good currency for so long.

Also when you list things like it was useful for aesthetically pleasing/cosmetic or religious purposes that's not really what I'm talking about, I'm taking more specifically about using the metal practically as a way to gain capital by putting it to use in business purposes.

Religious iconography or great works of art might be comparable because the world has regarded those things as fitting the aesthetically pleasing/religious category but they don't exactly make good money or builders of capital which is why I would discount those two categories as being helpful in determining the usefulness of someone. (Not trying to necessarily discount importance, merely raw economic potential).