Comparing cryptocurrency to precious metals is just outright stupidity in play!
Comparison tends to be a hard pass for people in the crypto space, most especially ones that do not understand what is being built or why it’s being built in the first place.
We see this all the time but people just really do not know how to categorize assets. I mean, if someone says NFTs will replace digital arts, I would reckon the person is right and dumb at the same time.
The rather suitable assertion should be that the nature of NFTs will cause a shift in how digital arts are monetized. No art can be an NFT if it wasn’t digital in the first place, get it? This is how we throw flawed comments at every little thing because we want our opinions out there.
I stumbled on an article that was talking about 1inch co-founder saying that blockchain developers don’t see how relevant bitcoin is to the system, this idea is coming from a point of “utility structure” which from a mere looking in, one can’t tell the role of the cryptocurrency.
Sorry unable to dig up the article now for proper referencing, anyways, oh wait just found it.
Bitcoin is all about security, specifically designed to serve as a secure medium to transact value across the globe without the need for intermediaries thus giving every transaction immunity to centralization. Over the years this has been developed upon and many blockchains have advanced this technology and many have sacrificed security in the process of building a much scalable framework, this outrightly makes the bitcoin network stand out for security.
However, the share fact that it’s incapable of rendering smart contracts and thus unfit for development as technology advances, the assertion hits a rare view. Bitcoin is well enough to become the unit of account for the entire ecosystem, matter of fact, it already is and most protocols and tools like price feeds have adopted the idea of showing price values in units of bitcoin.
Cryptocurrencies are digital utility assets
With other cryptocurrencies, much specifically smart contract enabled digital assets with their blockchains, utility frameworks are what make them a relevant piece of the ecosystem.
This is why it’s only stupid to compare cryptocurrencies with gold or silver, I mean, what technology is being built on precious metals?
We know they have some use cases like the deployment in electronics as the likes conduct electricity right? But this is an absolutely different field of building structures.
Cryptocurrencies are financial products with structures that promote financial incentives. The world is dead trippin comparing two different assets class as an attempt to tell what has “intrinsic value” and what doesn’t. As a commodity, precious metals are considered a different field of an asset as cryptocurrencies are digital assets that can contain any value built into their underlying structures.
With the look of things, most of the real world stuff will rely on cryptocurrencies one way or the other, and this is specifically because these assets are a computation that can be integrated into anything, thus, that directly places an influence on the overall economy.
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