Topic: Does Bitcoin have any real value? - page 3. (Read 2310 times)

Sure, cost does affect the market value. All I'm saying is that the value of a product comes from the fact that it satisfies one's needs. The production of it does have a cost which is added in the price, but that's true until there's one who's willing to buy it. If nobody wants gold, no matter how expensive it is to mine it, the valuation won't be greater or equal with the cost.

Take oil barrels as an example. In 20th of April 2020, crude oil prices went negative. The cost was much greater than the market valuation, because the demand suddenly dropped.

You are confusing value with demand. Obviously depending on the situation, bread might be more valuable than 100 Bitcoin or 100 kg of Gold. But thats an apocalyptic scenario which most likely will not come true anytime soon. Hopefully.

But my point stands. Anything can drop or rise in value but there will always be inherent value in work and time. The work in this case being electricity, equipment and so on and the time being the amount of time you spend mining to create a single Bitcoin.

But then again your logic would also work for anything, given the circumstance. If aliens enslave all humankind and put in a system where money is based on some arbitrary resource, that resource will gain a speculative value due to its demand. Or if we discover gold cures cancer, price of gold goes up.

But the minimum value is not raised by demand. Its raised in the minimum effort put into it.

No, the costs are the costs. The value comes from the fact that there's a demand. If there's no demand for gold, it doesn't matter how much it costs you to extract it from the ground: It's simply valueless.

However, in Bitcoin there's something different. The costs are somewhat connected with the valuation, because of the difficulty, which is a parameter that does not exist in any other asset. If the demand rises by a lot, it brings more competition into mining which makes it, in consequence, more expensive to mine 1 BTC. Oppositely if the demand drops by a lot.

The canon is the canon, though. If there's no demand, there's no market value, despite of the costs.

But in that case, things would cost about the same, right? If things have the same functionality, why should they cost differently?

The price of bitcoin has been on a wild ride since its inception. According to industry site CoinDesk, 2017 alone saw massive gains, starting the year below $1,000 and at its peak, breaking $19,000. Then we saw a deep decline in 2018 and a stabilization in 2019. What it is worth and why a significant market still invests heavily in it is a question that unbelievers often ponder. This piece attempts to address this question and help us understand the value behind bitcoin or any cryptocurrency. We are looking at a time where payment methods are changing in a very short time.

What is an intrinsic value?


The intrinsic value of a commodity is the value that a product possesses. It does not require any additional sources to provide value. Eg: Sweetness is an intrinsic value of sugar. Every item earns its value if there is a price that people will pay to obtain it. Today, we accept any fiat currency in exchange for goods or services because we understand that fiat currency can be re-traded to receive other goods or services, in return.

What is a fiat currency?


Fiat money is government-issued currency that is not backed by a physical commodity, such as gold or silver, but by the government that issued it. The value of fiat money is derived from the relationship between supply and demand and the stability of the issuing government. It is important to understand here that this demand and supply is determined by the participants of the network who are using a fiat currency. For example, within a network, I trade a $100 note for a mobile phone, I'm essentially exchanging $100 worth for the phone. The store-keeper takes a $100 note and buys his food with it or invests it to create more value. Fiat currency or money establishes an exchange of value with the help of government backing

Here's the value!

Similar to fiat currency, bitcoin (or most cryptocurrencies) is also not backed by any gold or silver, so it has no intrinsic value. The value of any currency comes from the support of the state and people's trust in the government. Therefore, for any money to be established as an exchange of value within a network, it is important for the network to trust who (or what) is backing it.

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You are saying that we give value to the things that we require for living? ‘Cuz the examples you cited are important for survival.

I think, more than not being a physical asset, the problem with bitcoin is that it’s highly volatile. No one can clearly say how much a bitcoin will be worth aftex X years and that makes me doubt whether it will be safe to have high expectations from it in the long term. Though, it is great for traders.

This reminds me of Warren Buffet’s quote, price is what you pay, value is what you get. I don’t really think that the price of a particular asset necessarily reflects its value.

I think that the very meaning of "value" is and ways has been nothing more than a single word without a real physical meaning. Value is an abstract feeling. A feeling of desire. Biologically, our desires are wired into us and always come down to necessary human requirements like food, love, safety and so on. So value is whatever we feel like it is. However if you are talking about monetary value, electricity, miners, internet and rent is not free. So making Bitcoin costs money.

Those Bitcoin mining costs are the non speculative, translated value.

I had that thought years ago, like in 2017 and I was like, why I didn't know it years ago haha! This will be repeated again and again, despite the BTC is not backed up by gold or any fiat. This is insane but this is called crypto, I guess.

Bitcoin is fully decentralized and has many other advantages and this is what makes Bitcoin valuable and invested by many people. Here we know that Bitcoin is good for investment but it also depends on how to manage it. if you are not too sure and understand Bitcoin, it's better not to invest first. invest in bitcoin when you already have sufficient knowledge and understand Bitcoin. that's because not everyone can accept Bitcoin, therefore it is necessary to be aware of each if you want to invest in it so that we are also serious and careful in managing it.

Before you start investing in bitcoin, have you studied the conditions and how the bitcoin system works. If you already know it, of course you are no longer confused about how bitcoin actually is. I will give my understanding of bitcoin as far as I know. I learned bitcoin is digital money, meaning there is no tangible form like gold or other. Bitcoin has real value in terms of your assets. Bitcoin will be a visible object when you cash out. You use the money to buy your necessities.

If you don't keep Bitcoin which of the coins are keepable and can also be invest for long time with trust, Bitcoin is only coin you will build your trust on, because of it potential, since the introduction of cryptocurrency Bitcoin is the most reliable coin you can rest after investment for long time

long-term bitcoin investment attracts many choices to continue in the crypto world even though the value of bitcoin sometimes changes but the value of bitcoin will remain stable even though it is in the form of digital currency like we store something in a bank with nominal numbers that can also resemble a investing in the crypto world, the current value of bitcoin cannot be separated from cryptocurrencies that are starting to be accepted by various groups so as to make the digital currency stable again.

Do you think this ‘bitcoin as an inflation hedge’ theory is fairing well since the price of bitcoin fluctuates a lot?

Being a trader I definitely do not like missing out on an opportunity, jk. There’s no denying that bitcoin has a great profit potential, but I am not sure if it’s safe to keep it for a long span.

I am also looking for one such reason but I think most of the people are only investing because they don’t want to miss the train.

Bitcoin is a decentralized currency that is not control or manage by the government  before users can earn something good  from it. It pump and dump to help the users to know when to buy bitcoin and when to sell bitcoin to make a passive income at the moment. Bitcoin has helped many people to eliminate poverty from their investment by purchasing bitcoin when the price is low and hold until the price increase higher before you can sell to make a potential income.

btc is valuable & doesn’t need to backed by any physical assest. Its enough for itself. people set its value depending on how it is. It has ups and down but has real use too, companies investment making it more valuable. Even so many countries recognised it as valuable. More and more people keep involving, even  it was reached $66k ATH, what else you want? Now its your choice how you want to use your fund

The bitcoin coin does not have any real value. Because there is no inertia in its value and its value always has a change. It works like a stock market which always has rises and falls. Stock Market's share rate always has changed they never stay still. So bitcoin is also a cryptocurrency which continuously involves in business and trade. So its prices and value Be in constant circulation and do not stay in some specific position So bitcoin does not have any real value.