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Well, isn't all this gold/bitcoin has value thing a mass illusion anyhow?
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No. There's very little else that has the same properties as gold (a handful of other precious metals, really), and nothing else that has the property-set of bitcoin. The value/utility is due to those properties. I feel like you're kind of alluding to the fact that gold and bitcoin are not commodity money (ie, you can't eat them, burn them, whatever), and therefore lack fundamental value. The commodity-money folks miss the boat, in my opinion. Money should have properties that make it good money....being useful in industry or whatever is a totally different concern. Stuff with traditional 'good-money' properties (eg, divisibility/unit-of-account, limited supply, durability, etc, etc) have utility because of those properties - they make commerce more liquid - and bitcoin does it all better than gold while adding a bunch of really nice modern-transactional properties.