This is a valid point. Another valid point is that #bitcoin has no intrinsic value. In other words, Bitcoin is fiat, just democratic fiat. A huge improvement over government fiat, but still fiat. So how do we bridge the gap? I don't have a solution, bit I have some ideas. 1. A stock exchange where #monero /or another Privacy Respecting Blockchain Token) is used as a payment to handle the transaction. The PRBT will be the equivalent of ether gas payments. The value of the PRBT will quickly be linked to the value of a transaction on the exchange. 2. Gold will be an easier way to start this stock exchange. It is protected under the constitution and some states are in the process of making it money again. 4. Gold storages will put some gold in a special on site custodial and that gold OWNERSHIP will be exchaned. Using smart contracts Gold can be given in exchange for gold bonds. Gold investors will first buy gold in the Blockchain, exchange them for gold bonds and gain intrest. Each such exchange will require some "gas" in PRBT. 5. Redeeming the gold will be subjected to the laws where the gold is stored. 6. Brokers can swap gold from storage a to gold from storage b. Creating a Universal Gold Token. 7. This is basically a dual / multi currency proposal. Gold as the intrinsic value and a PRBT as a derivative value of the exchange

If someone has to be in charge of the peg, the peg will fail.

Bitcoin solves the oracle problem

bro just tokenize it 💩

only for money

indeed, intrinsic value does not exist.

Put my house on "The blockchain"

Sure, the only thing you get is "don't trust, verify that this is truly yours". If you dig deep enough (ecdsa, hash functions etc..) it actually becomes quite difficult to verify, so we are no free of axioms 🤣

It does not, it just picked the only real world thing we had a pre-existing consensus on, namely time, which mitigates the oracle problem. We get away with it, but as such it still exists.

#deepsnek on a plane

"pig & elephant DNA just won't splice." -Chef

Oh well. Just as well, otherwise Justin Sun would eat all the bananas on the block chain! 😜

Distributed Automation and enshrined oracles solve for this

Does this mean excess block space has no value? Wonder what Bob Burnett would say…?

@Gigi knows what's up. Check your Oracle at the door.

It already happen and had a few fails. gold and silver warrants tied to physical in comex vault had some issues. It’s very rare but they do loose bars from time to time. Each bar has a serial registered to a paper warrant. Gold bars are relatively easy to audit but silver is a nightmare as it’s just piled on pallets in vault/warehouse.

Whoever enforces ownership of the bananas is the source of truth. Once this is established, they will assert their authority and use a database instead.

Fun story time. Back when Facebook was still a thing, you could select your face in an image you or someone else posted and tag it with your Facebook id. If it was someone else's pic, they had to approve it. This was used to generate their massive facial recognition database. In order to prevent myself being easily identified by their db, I made a habit of tagging random objects and famous people as myself. No one ever contradicted me. The moral is: no one cares about data integrity and many people will actively work against it to protect their privacy or even just because it's funny.

Actually, it does. Gold has intrinsic value. Value that is derived from it's intrinsic properties. So does an iphone

That’s not how distributed networks work but sure… apply the concept of mining nodes to distributed voluntary ownership

Let me know when your local government recognizes the owner of an ordinal as the owner of your house.

Does tokenizing assets and commodities require any more trust than placing an online order with Amazon and expecting delivery? Tokenized commodities will become a significant economic force on the coming years. Those countries that manage this well will even see tokenized commodities compete with Bitcoin for use as medium of exchange and unit of account. Those countries that don't will have to rely on more trust less protocols like Bitcoin.

No “tokenization” needed. Just like there isn’t any tokenization needed with placing an order with Amazon.

There is of you want to create currencies from baskets of commodities (flatcoins). I think those are destined to become units of account, which I don't think Bitcoin is useful for the until after the price stabilizes. And even then, bitcoin is one commodity among many. Would you be willing to hire someone for a fixed amount of Bitcoin as their yearly salary?

Commodities markets work just fine without any tokenization.

an iphone in the jungle? after a couple of days it's intrinsic value is that of a rock. I would say value is dependant on the utility of the thing and the need of the person that is analysing it. which makes it subjective.

They work just fine in terms of satisfying demand for commodities efficiently. They don't work just fine in terms of being usable as a form of money. Which they could if they were tokenized.

Value is subjective. The question is on what a person bases the value. Bitcoin is valuable. You can buy a house with it. But the subjective value of bitcoin is not based on any objective property of bitcoin. There is no difference between Bitcoin or any other so called shit coin. Actually there is no intrinsic feature of bitcoin that you can objectively base anu value on. It has no intrinsic value. Gold value is also subjective, but it is based on it's objective properties. For instance an electronic manufacturing company might buy gold because it's high resistance to corrosion and high electrical conductivity. Anyone who isn't trying to manufacture electronics won't care about electrical conductivity. Therefore the value of this objective property is subjective.

correct, the "thing" has intrinsic properties and that is a reality. How one values that property depends on the individual. copper is conductive but gold is more conductive, hence if is conductivity you are looking for gold is better than copper. the theoretical characteristics of money for exemple are durability, portability, divisibility, uniformity, limited supply, and acceptability. The more you have of each the better the money. Acceptability for example is very subjective and geographically dependant. even money by definition has no intrinsic value, gold and bitcoin included. I do personally value both, so if you want to give me some I won't say no.

For something to become money it needs to have all the characteristics you mentioned on top of the foundation, which is that it already has value. That is why I doubt Bitcoin will ever become money. We need some sort of mashup between the two. Gold and Blockchain. As I described in my previous comment.

yes, also bitcoin is not recognizable at a global scale (ask my mom, she has no idea). I see only two problems with the gold+blockchain solution: 1. gold is mined at a 2% every year, meaning supply is not fix and it compounds to a devaluation of 50% in 34 years or so. 2. the oracle problem, how do we keep the peg between the gold vault and the blockchain? if someone steals a kg or the germans invade, the people of indonesia trade with an empty token. I would say point 1 is weak, since technology makes everything cheaper but I still struggle with point 2. let me know if you have thought about viable solutions

The first point isn't much of an issue since the population also grows. Relative to human population size the amount of gold hasn't grown much. Regarding the second point I think the best thing is not to pef the PRBT to Gold, but to the value of a gold transaction. The PRBT will be the gas price to create a transaction. It's value will fluctuate with the demand to do trade. How does that sound?

a little bit beyond me, let me google a couple of terms and read it again :)

It would be great as the worlds „digital ledger “ though, if we get represented enough information as in proof of ownership of physical things. Non-fungible ledgers would be something in the better part of tje world where politics make for very insecure ownership.