Gold is built on a collective belief in its value. There is nothing fundamentally “inherent” other than an agreed-upon value. The same is true with Bitcoin and, it’s fair to say that all asset prices are fundamentally based on the collective belief about value regardless of some perceived “inherent” value.

Game Theory contends that there is a “focal point” around which people coordinate their actions, and it is how value is determined in a market. This explains gold’s value for over 6000 years, and it appears to explain bitcoin’s value today.

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