Ah yes Gold. Thé resource with amazing intrinsic socially constructed value.
Oh the irony
If anything has a socially constructed value, it is a cryptocurrency. In this respect, it is very much like fiat. What is the actual value of an entry in this distributed ledger we call Bitcoin? It's anyone's guess.
Yeah, the practicability.
Contrary to gold, btc can be send anywhere from anywhere.
You'll tell me same thing for fiat if they're based on gold that means gold (through fiat) can do it too.
Yeah but btc is based not on simple arbitrary assets as gold but on Hashing power. Which means technology development and power! Much better that an arbitrary noble metal no?
They accomplish two completely different goals. Gold is a rare, malleable, corrosion proof metal that has been used as a store of value for as long as records have been kept by humans. It's value is readily assessed based on its rarity and physical characteristics. The only actual asset backing a particular cryptocurrency is the hardware which serves no other purpose but to complete totally arbitrary (and wasteful) hashing calculations. Furthermore, that hashing power could be directed at any number of competing cryptocurrencies. It's an infrastructure more than it is a currency.
The next real, game changing currency will be one based on energy, I believe. When battery technology improves so that several MWh worth of energy can be stored in a small cell, you'll see people exchange those instead of traditional currencies.
