of it of all of the goods and commodities in the world gold was the most relatively scarce commodity that's what gave it this monetary property that caused it to have market value as money but with bitcoin we have perfected that property of scarcity we have something that is digital and has a perfectly fixed supply and it's really hard to overstate how big of a deal this is because we've never had anything that we know with absolute certainty uh the supply is fixed at that amount and this in the case of bitcoin is NUMBER_TOKEN million so that's a nutshell answer the bitcoin is the best money we've ever had i think i guess the big thing to understand that a lot of people don't is that money is a technology we typically think money today we think it's a a product issued by government but that's not the case that's not the truth actually is money emerges on the marketplace as a technology people favoring those properties of money um and then i guess we could get into a bit of how we went from gold to paper money if you like actually that would be interesting but before i have one question before we get into that but gold to paper money sounds good um what about the fact that you can't use bitcoin physically for something so for gold you could turn it into jewelry or use it in computers or you could use it but for bitcoin you can't use it like that do you see that as a problem yeah so everything that trades in the marketplace it's value has two basically functions so one is utility value which is what you're describing you can use it for jewelry you can use gold in dentistry you can use it in computers this is the utility value of gold and then there's another component of demand for gold that it is its marketability or its monetary use case so when we look at gold's market cap today say it's around NUMBER_TOKEN trillion dollars approximately one or two trillion of that market cap which is the total value of gold worldwide is the demand configuration for its use it's you use as a utility right in dentistry and computer and all these things the other eight trillion dollars of gold's market cap is demand for gold as money to hold it as a store of value so this is actually another definition of money is like of every and everything exhibits a little bit of monetary premium um like anything because you would hold it in anticipation of trading it in the future so gold is just a thing that's held mostly for its marketability aspect of value so you could say the def another definition of money would be that commodity which exhibits the greatest marketability or monetary premium yes relative to its utility value so gold would say again eight to two like a four to one right bitcoin has perfected this again by perfecting the properties of money bitcoin's pure monetary premium there's no industrial use to it at all so you could argue that this is a defect but bitcoiners would actually take the position that this is an expression of bitcoin as a pure money it's like the first time we've discovered a pure money and this technology is only good as money it does nothing else whereas gold was just kind of this analog version of bitcoin we were just doing our best with what we had that's interesting so that's why it's referred to as gold NUMBER_TOKEN yeah digital gold which is a great analogy but you have to really understand gold and not many of us do yes this is true okay you're talking about gold into paper
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