Does Bitcoin have any real value? - page 15.

velhoti

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Quote from: mk4 on October 01, 2021, 11:20:31 AM

Quote from: velhoti on October 01, 2021, 11:10:56 AM

Gold

Scarce - The annual production is known, the supply grows slowly and in predictable way. There are few available, is scarce.

Wait, is it really? If a gold mining company/entity manages to mine X amounts of gold, is it even broadcasted to a certain entity(probably besides the government for taxes)? Do we even have an official "X amounts of gold mined this year" metric? We don't even know how much gold is left on earth.

First, bitcoin have stronger scarcity properties than gold.

I've heard that the annual production is correlated with the price, and is know, don't have the source.

There are huge amounts of gold in the center of the earth, and possibly in some asteroids and planets. But until now they are inacessible.

mk4

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Quote from: velhoti on October 01, 2021, 11:10:56 AM

Gold

Scarce - The annual production is known, the supply grows slowly and in predictable way. There are few available, is scarce.

Wait, is it really? If a gold mining company/entity manages to mine X amounts of gold, is it even broadcasted to a certain entity(probably besides the government for taxes)? Do we even have an official "X amounts of gold mined this year" metric? We don't even know how much gold is left on earth.

velhoti

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Gold

Scarce - The annual production is known, the supply grows slowly and in predictable way. There are few available, is scarce.
Falsability - gold have the bigest density in nature, any thing mixed to it decrease its weigh, it is not falseable
Durability - virtualy infinity
divisibility - High if greater than 1 gram
backed by physical laws

Bitcoin

Scarce - The mining reward is constante, there are a max supply of 21 milion. There are few available, is scarce.
Falsability - not falseable if the network is healtly, possible with 51% atack but improbable
Durability - infinity unless a catastrofic event of turn off the majorities of computer or the internet in the world, istill possible to restore the network with stored blockchains.
divisibility - High, until 1 satoshi (0.00000001BTC)
backed by crypto and math laws

See, bitcoin have very close properties and values than gold, but can be more easily transacted and transported, and is insensurable. The same way due to those propertyes the humanity valuate gold, may valuate BTC equaly.

ref:
https://fasam.edu.br/wp-content/uploads/2020/07/Bitcoin-A-Moeda-na-Era-Digital.pdf

Sterbens

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Duelbits.com

If I say that Bitcoin has a real output, would you invest money in Bitcoin immediately? Don't be afraid of the lack of physical value that you see with the naked eye, but the level of benefits can be felt and even we are left far behind by big investors who don't think long about the value and essence of Bitcoin. Why are they so convinced that they spend millions of dollars just to own Bitcoin? Well you have to think that far.

We don't even realize that Bitcoin has survived for so many years, why are there still people who doubt its existence? That's because they think a lot but there is no concrete evidence that can explain the physical value of Bitcoin. You just have to think about whether everything must have a physical value? when all alternatives that have physical value are always fully controlled by the government. Don't you want to have your own asset freedom?

Bitcoin does not have physical value, but there is a great value of trust in each one. How much you believe in Bitcoin, means that the value of Bitcoin cannot be made physically.

Leviathan.007

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Leading Crypto Sports Betting & Casino Platform

Supply and demand are what give value to gold, bitcoin, or any other asset. Without supply and demand, gold would be worthless imagine you have 1m of any asset but there is none to buy it, that's why people say supply and demand is giving value to any asset and the source of supply and demand is the interest of buyers are sellers, if any asset is useful enough for the buyers there will be more demand and this can give that asset more price level. We have the same story for any other asset, besides that, the p2p feature you can get while using bitcoin can be the value and actual benefit of it.

Jawhead999

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If Bitcoin is backed with gold or fiat, it's no more Bitcoin but digital gold or digital fiat. Bitcoin stand by his own value, same like gold or fiat stand by his own value too.

The real value of Bitcoin is 1 Bitcoin = 1 Bitcoin, it will never change and always 1 BTC = 1 BTC.

Kelvinid

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win lambo...

Quote from: numberslacey on October 01, 2021, 08:06:23 AM

Bitcoin is not backed by any physical asset like Gold nor by any fiat currency. It makes me wonder if I should invest/trade in Bitcoin or not?

If you just wonder if you want to invest or not, then don't make yourself do it. But before leaving and wondering about Bitcoin, maybe you have to take a look at what happens to this stuff, from $0 to $60k, might you also have to wonder why it goes like that if there is market value. That price will imply that it was really useful to the community.

That you are right saying it was not backed by any physical asset but it was not how we measure the value of Bitcoin. And in fact, we valued Bitcoin more than Gold and Fiat money as this was very usefull in the current era. I think you have to consider that somehow.

RapTarX

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What does back fiat? Can you explain? We have to trust that fiat have value just because govt told it has value. There's nothing else. Bitcoin has real value because it breaks all this centralize control over the monetary system.

Quote from: numberslacey on October 01, 2021, 08:06:23 AM

Bitcoin is not backed by any physical asset like Gold nor by any fiat currency. It makes me wonder if I should invest/trade in Bitcoin or not?

If you wonder why should you invest, don’t, please.

ChiBitCTy

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Quote from: numberslacey on October 01, 2021, 08:06:23 AM

Bitcoin is not backed by any physical asset like Gold nor by any fiat currency. It makes me wonder if I should invest/trade in Bitcoin or not?

The worlds reserve currency is the dollar, it is not backed by anything other than the "good faith of the United States government". People need to get past the "it's not backed by anything" argument. It's value lies within it's breakthrough technologies (blockchain, available to all, easy/cheap transfers etc). Things have value because people believe they do, and that is no different for bitcoin.

hatshepsut93

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There's no such thing as real value. Value is entirely psychological phenomenon, it doesn't exist in nature independently from humans or some hypothetical other intelligent life forms. The number you see on Bitcoin exchanges is as real as the numbers that you see on stock markets, foreign currency exchanges, etc.

bittraffic

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Dont invest on something you don't understand. The internet is available for.you to do.some learning.

If you still dont understand BTC why its value is high after that, maybe you need to learn why or find another investment that you understand more like real properties. Or simply gold, it does sound like you understand it more than BTC.

DannyHamilton

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Quote from: numberslacey on October 01, 2021, 08:06:23 AM

Bitcoin is not backed by any physical asset like Gold nor by any fiat currency. It makes me wonder if I should invest/trade in Bitcoin or not?

Gold is not backed by any asset like Bitcoin, nor by any fiat currency. It makes me wonder if I should invest/trade in gold or not?

Fiat currency is not backed by any physical asset like Gold or Bitcoin. It makes me wonder if I should invest/trade in fiat or not?

Bitcoin doesn't need to be "backed" by anything. It is an asset. It has use. It has value. It has demand. It has supply.

nullama

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Quote from: numberslacey on October 01, 2021, 08:06:23 AM

Bitcoin is not backed by any physical asset like Gold nor by any fiat currency. It makes me wonder if I should invest/trade in Bitcoin or not?

Read this:

https://www.bitcoinisdead.org/well-actually/it-has-no-intrinsic-value-its-not-backed-by-anything

mk4

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Whether you think bitcoin has "real value" or not, the fact is, people do; hence why it's worth $47,000 at this time of writing.

And if you're asking us if you should "invest" in bitcoin or literally anything, then you probably shouldn't if you're not willing to do the research yourself.

jackg

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Quote from: lumierre on October 01, 2021, 09:18:59 AM

First of all, I want to ask you if Gold is backed by anything, or why do many people think that it is one of the best investment?

Most people say gold has historic significance to it, it's also used in industry quite a bit and is used a jewellry as well as other stuff.

The main thing increasing the price of gold is the miners profiting off it though by producing a scarcity, most industries can use platiumum better than gold too so there's less of a reason for its uses.

On the what is bitcoin backed by, what is currency backed by? There has been a lot of studies on the economy and many have found that the largest investments are in derivative assets (often people buying portions of assets or buying assets against other people selling them - while neither hold the asset - which does seem quite odd).

I've generally considered an investment in Bitcoin to be an investment in its: name, developer community and infrastructure at least.

lumierre

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Quote from: numberslacey on October 01, 2021, 08:06:23 AM

Bitcoin is not backed by any physical asset like Gold nor by any fiat currency. It makes me wonder if I should invest/trade in Bitcoin or not?

This issue is as old as hills. I used to think that Bitcoin is just a toy or a Ponzi scheme. But now I am getting crypto and economic education at the university, and I have completely changed my opinion. First of all, I want to ask you if Gold is backed by anything, or why do many people think that it is one of the best investment? What is more, as Bitcoin is adopted by many companies and even whole countries, it become supported by their ecnomics.

Kong Hey Pakboy

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I don't think there's no definite answer to that, for me there's really no physical value to bitcoin, it's kind of the same as fiat, it's the people that makes the value for those things and I don't see anything wrong with that because to be honest, almost anything valuable have the same scheme like gold and platinum, they're just metals and they're shiny.

numberslacey

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Bitcoin is not backed by any physical asset like Gold nor by any fiat currency. It makes me wonder if I should invest/trade in Bitcoin or not?

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