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#2494·Erik OrrjeOP, 6 days agoThanks for the criticism. New argument: Utility (besides usefulness as money) is not strictly necessary, although it may be nice to have. The value of a currency is set by supply and demand.
Supply: A limited supply (scarcity) may increase the value.
Demand: Demand is set determined by how well people percieve the currency's features as a store of value, medium of exchange and unit of account. Important factors include: Durability, Portability, Divisibility, Fungibility, and Stability. Gold has had most of these features (importantly scarcity, only 2% inflation from mining). However, it severely lacks in portability due to being a metal, compared to hard digital assets.
So the value of a currency is mostly determined by its perceived usefulness as money, not its utility for other things.
New arguments may not belong at the bottom of the criticism chain. Depending on context, it may need to be either a new sibling at the top of the chain or a completely new standalone idea.
I didn’t check this exchange in detail to say for sure. But I recommend checking, so I’m marking this as a criticism. If you think the new argument can remain as is, leave a counter-criticism to neutralize my criticism.