Thousands of words have been written on the subject, and many more will be written in the future. Unfortunately, very few of them will help us to answer that simple question. In any case, we already know the answer, and it has nothing to do with Bitcoin itself, but rather with the way in which we consider things valuable. Let me explain…
The concept of “value” is defined, in theory, as “the regard that something is held to deserve; the importance, worth, or usefulness of something.” This definition would seem, on a first glance, to contain all what we need to know about value, except that this definition is incomplete when we talk about some specific objects or financial constructs.
In financial instruments of any kind –and Bitcoin could be considered one of those- value is increased by scarcity, desirability and an inability to duplicate whatever makes said instrument valuable. The equation that results in the value assigned to a given thing is more complex than it would seem, and it includes concepts related to physical limitations that prevent the duplication of the object, and the ability of this object to connect with our emotional nature as human beings.
Read the full story here:
http://www.cryptocoinsnews.com/2013/12/03/bitcoin-hold-intrinsic-value-overvalued/What do you think?
