kensai7 (OP)
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August 11, 2017, 10:27:51 AM |
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How many times have we heard that currencies should have intrinsic value? Truth is, the value of something (be it Bitcoin or a wheel of premium cheese) is eventually set by the persons that are willing to recognize and trade it. And that's a good thing!  https://www.greatbigstory.com/stories/banking-on-cheese |
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buwaytress
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August 11, 2017, 12:48:28 PM |
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Indeed, the willingness to trade is the crucial factor here. Something that collectors of very expensive luxury items would know. They all agree among themselves that the value of their holdings are slowly but surely rising. What they might have spent a fortune on years ago is worth a lot more today, with increasing rarity and uniqueness. But the real problem, which many recognise, is finding someone willing to trade for it for its perceived value. Saw a show recently about a guy who spent $2million worth on special edition Nike shoes, enough to fill up an entire warehouse, all on display in immaculate condition. He tried selling it for $1 million, HALF of what he invested, insisting it was worth much more. He wasn't wrong, and Nike enthusiasts might agree... but the rest of the world wouldn't think so. So you might bank on cheese, and hope more and more people agree that cheese is valuable and can be convinced to trade for it. The same way we're all banking on Bitcoin |
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Route69
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August 11, 2017, 02:34:13 PM |
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Indeed, the willingness to trade is the crucial factor here. Something that collectors of very expensive luxury items would know. They all agree among themselves that the value of their holdings are slowly but surely rising. What they might have spent a fortune on years ago is worth a lot more today, with increasing rarity and uniqueness. But the real problem, which many recognise, is finding someone willing to trade for it for its perceived value. Saw a show recently about a guy who spent $2million worth on special edition Nike shoes, enough to fill up an entire warehouse, all on display in immaculate condition. He tried selling it for $1 million, HALF of what he invested, insisting it was worth much more. He wasn't wrong, and Nike enthusiasts might agree... but the rest of the world wouldn't think so. So you might bank on cheese, and hope more and more people agree that cheese is valuable and can be convinced to trade for it. The same way we're all banking on Bitcoin That's true! |
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iamTom123
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August 11, 2017, 02:44:13 PM |
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How many times have we heard that currencies should have intrinsic value? Truth is, the value of something (be it Bitcoin or a wheel of premium cheese) is eventually set by the persons that are willing to recognize and trade it. And that's a good thing! https://www.greatbigstory.com/stories/banking-on-cheeseThe concept of intrinsic value remains to be dependent on people and how they perceive a certain thing or object. It is always the market which would determine whether something has value or not and how that value would rise or fall. Rather than depend on anybody for the valuation, we should let the whole marketplace determined its value. I would be happy if Bitcoin can be rising as the way is already cleared for this King of the Cryptos. |
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Lieldoryn
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August 11, 2017, 02:47:17 PM |
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Many banks take money in the national Bank using their connection. They untwist inflation and ultimately pay for everything people. It's a Scam. The value of cash is determined by government. Banks are just parasites on it. The value of bitcoin determines the demand and in this they differ. No domestic prices should not be.
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Clutch_Jones
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August 11, 2017, 03:21:37 PM |
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Indeed, the willingness to trade is the crucial factor here. Something that collectors of very expensive luxury items would know. They all agree among themselves that the value of their holdings are slowly but surely rising. What they might have spent a fortune on years ago is worth a lot more today, with increasing rarity and uniqueness. But the real problem, which many recognise, is finding someone willing to trade for it for its perceived value. Saw a show recently about a guy who spent $2million worth on special edition Nike shoes, enough to fill up an entire warehouse, all on display in immaculate condition. He tried selling it for $1 million, HALF of what he invested, insisting it was worth much more. He wasn't wrong, and Nike enthusiasts might agree... but the rest of the world wouldn't think so. So you might bank on cheese, and hope more and more people agree that cheese is valuable and can be convinced to trade for it. The same way we're all banking on Bitcoin Yes. We have to remember that, at one time in the not so distant past, things like certain spices (salt, for instance) were far more valuable than shiny, pliable metals such as gold, silver, etc. Salt was needed for daily life, way moreso than a golden bauble. Fast forward to today where we post on here using a phone that costs a few bucks to make but we "value" at upwards of $800 or more and we will spill a gallon of salt and not even pick a single grain up. |
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Mormyr
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August 11, 2017, 03:22:53 PM |
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Some premium cheese here in Europe can be sold to up to 1000$ a wheel. What makes them worth that much is however rather the rarity of them more than fan people pay to pay that much.
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Clutch_Jones
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Activity: 392
Merit: 101
Ⓚ KORE PROJECTS - S. Media Director Ⓚ
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August 11, 2017, 04:30:45 PM |
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Some premium cheese here in Europe can be sold to up to 1000$ a wheel. What makes them worth that much is however rather the rarity of them more than fan people pay to pay that much. Rarity definitely makes things worth more...as long as people are actually looking for said rare item. Supply & Demand. If the supply is low, but demand is high, it will be "worth" more. If supply is low, but so is demand, that isn't true. It's not only the rarity that drives the price, but peoples' desire to still obtain it at that price. |
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erre
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Merit: 1205
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August 11, 2017, 04:40:13 PM |
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Some premium cheese here in Europe can be sold to up to 1000$ a wheel. What makes them worth that much is however rather the rarity of them more than fan people pay to pay that much. Yes, this is the law: bids and offers make the price. By the way, a good parmesan will be priced even more when seasoned for 24/48 months, so it's a very good collateral for a 1/2 years loan. I think it's unlikely that the world demand for italian dop parmesan will drop quickly, so i did not find strange using it as a collateral. Rarity definitely makes things worth more...as long as people are actually looking for said rare item. Supply & Demand. If the supply is low, but demand is high, it will be "worth" more. If supply is low, but so is demand, that isn't true. It's not only the rarity that drives the price, but peoples' desire to still obtain it at that price. |
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