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mk · 5145 days ago · link · · parent · post: Bitcoin: a distributed digital currency that does not rely on a central issuer.
>This currency could change value rapidly if it became more popular, and would probably fluctuate a lot in sync with the financial cycles.
As it is a finite resource, wouldn't bitcoin's value behave in a way similar to a precious metal?
I just did a little bit of looking into digital gold. According to Wikipedia, all issuers of DG keep actual bullion on hand that is equal to the amount of DG they 'print'. However, the big difference I see between BTC and DG, is that DG could be issued without the gold to back it if the providers decided to change their scheme. New BTCs (aside from the ~21M) can't be issued by their very nature. For that reason alone, I'm not sure which I trust more. -Which is pretty funny, considering how arbitrary BTCs creation was.