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[–] Kleyno 2 points 1 point (+3|-2) ago 

I agree about crypto being a big part of future commerce. But as for Gold, it is valuable because of its rarity.

It can only be created in a supernova explosion, which makes it pretty damn special, as metals go.

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[–] Sakusha 1 point -1 points (+0|-1) ago 

When I go poo-poo, my unique turd isn't valued equal to the entire world's supply of gold just because it's one of a kind. Scarcity doesn't equal value. Demand equals value, and ordinary people no longer have a high demand for gold and silver. Bitcoin, however, is both scarce and in high demand.

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[–] Kleyno 0 points 1 point (+1|-0) ago 

A very poor example. Everyone can shit; everyone can keep their shit. It is not rare.

Also, scarcity does not equal unique either, so I am really not sure where you were going with the shit example.

Demand also does not equal value in and of itself. If supply of a resource is plentiful, then demand for that resource does little for its value, no matter its other qualities.

Gold is valuable because:

  1. The supply is finite.
  2. We cannot create more gold than what we already have.
  3. Extracting and processing what we do have is time consuming and expensive.
  4. It is a malleable, generally non reactive metal (won't rust), that was easy for ancient civilizations to make into long lasting jewellery and mint into coinage when that became a thing.

Demand for gold started from point 4 and the value increases because of the other points. Yes, humans had to collectively agree that gold had value, but demand does not exist in a vacuum. If gold were as plentiful as other metals, it would not be worth nearly as much as it is now.