The value of bitcoin?

[smokeydog]

Adams Smith wrote that the price of all things are equivalent to the human labor involved in their exploitation.   The price of gold is determined by the cost in human labor to mine it.  It can then be exchanged for another commodity which takes an equal amount of labor to create it.

Over time I have been able to find ways to place a price on stocks which I can use to evaluate what their value is to me.   I can then buy and sell based on what I determine as value at any time.   

I’m not a currency speculator but I also believe the US dollar is being killed.   I don’t like having much of a cash position but would rather be fully invested.   At this time what I see is a highly inflated value of the S&P 500.  Any bonds other the very short term bonds come with too much risk tied to the Feds low interest rate policy and the increasing money supply along with quantitative easing which is placing too much fake money on the Feds balance sheet.

After many years I have developed a feel or intuition to tell me when prices are out of line.   When it comes to bitcoin I am at a loss.   I like the core concept of bitcoin and long term it seem like it will all work out but it’s value is another issue.   I just don’t have a feel for what it’s worth in exchange for food, a house, a car, gold equivalent.  It seem that it should be relatively close in value to the cost incurred by the bitcoin miners.   How do I find out what the current cost is to mine bitcoins.  It cost to mine a well know number kind of like the PE for a stork or index?

I have started to buy small amounts which I plan to hold but I really don’t like the volatility.  It is also difficult to invest in something when I don’t really have any history to give me a clue of somethings value.  I doubt I would hold if bitcoin went over 5000.  It seems to be moving a bit too fast.

[1714859412]

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[albertvert]

Adams Smith wrote that the price of all things are equivalent to the human labor involved in their exploitation.   The price of gold is determined by the cost in human labor to mine it.  It can then be exchanged for another commodity which takes an equal amount of labor to create it.

Over time I have been able to find ways to place a price on stocks which I can use to evaluate what their value is to me.   I can then buy and sell based on what I determine as value at any time.   

I’m not a currency speculator but I also believe the US dollar is being killed.   I don’t like having much of a cash position but would rather be fully invested.   At this time what I see is a highly inflated value of the S&P 500.  Any bonds other the very short term bonds come with too much risk tied to the Feds low interest rate policy and the increasing money supply along with quantitative easing which is placing too much fake money on the Feds balance sheet.

After many years I have developed a feel or intuition to tell me when prices are out of line.   When it comes to bitcoin I am at a loss.   I like the core concept of bitcoin and long term it seem like it will all work out but it’s value is another issue.   I just don’t have a feel for what it’s worth in exchange for food, a house, a car, gold equivalent.  It seem that it should be relatively close in value to the cost incurred by the bitcoin miners.   How do I find out what the current cost is to mine bitcoins.  It cost to mine a well know number kind of like the PE for a stork or index?

I have started to buy small amounts which I plan to hold but I really don’t like the volatility.  It is also difficult to invest in something when I don’t really have any history to give me a clue of somethings value.  I doubt I would hold if bitcoin went over 5000.  It seems to be moving a bit too fast.

Today the value of the bitcoin is $4212 and day by day it will increase only . The price of gold is determined by the cost in human labor to mine it.  It can then be exchanged for another commodity which takes an equal amount of labor to creaissue . I like the core concept of bitcoin and long term it seem like it will all work out but it’s value is another issue and this are the value of bitcoin

[h0lybyte]

If you would have analyzed the market frequently,it was more than $4400 price of BTC. Due to volatility,it can't stay at any fixed value.
Do not look on the dark sides of bitcoin market,the ups and downs will happen always as this process designates its importance more than before.
So yes this is the right moment to make your dreams come true by holding bitcoins.

[Hydrogen]

I like the concept of monetary value being a function of #1 time, #2 innovation and #3 productivity(nearly the same thing as labor).

Example the value of bitcoin might be expressed in terms of the #1 time it took to mine all existing coins in millions of hash hours. The relative degree of #2 innovation bitcoin represents as a store of value, as a currency, as a traded commodity on exchanges, etcetera. And the economic/social/financial #3 productivity which occurs as a result of bitcoin's existence.

Of course this is an overly simplistic way of attempting to define value. There are many different facets to bitcoin and crypto's success. It is unfair to overgeneralize only 3 aspects of what is a long list of contributing variables.

[LeGaulois]

If the gold value was based on what it takes to mine it then the price wouldn't be so high. After all, they use slave children to mine and pay the families peanuts. There are several but the most significant parameter is the quotation established by the "fixing".

If the volatility is not something that people can handle then the cryptocurrency market is certainly not for them. Because there is not a lot much more volatile than cryptos

[bozo333]

If the gold value was based on what it takes to mine it then the price wouldn't be so high. After all, they use slave children to mine and pay the families peanuts. There are several but the most significant parameter is the quotation established by the "fixing".

If the volatility is not something that people can handle then the cryptocurrency market is certainly not for them. Because there is not a lot much more volatile than cryptos

Bitcoin is not stoppable so that the reason for bitcoin process value chance every time and every day it will give more information and get the profitable one bitcoin is the value is must check before sell bacon is the booster to the get profit income process and development bitcoin is the analysis to the improve the price spices and it will use full to get the growth and business process bitcoin value is the must for the process.

[Koadharber]

If the gold value was based on what it takes to mine it then the price wouldn't be so high. After all, they use slave children to mine and pay the families peanuts. There are several but the most significant parameter is the quotation established by the "fixing".

If the volatility is not something that people can handle then the cryptocurrency market is certainly not for them. Because there is not a lot much more volatile than cryptos

Agree on what you are saying here. When it comes to volatility i would hands down on cryptocurrencies because nothing on this world would able to equal when it comes to price movements.This is the risk and this is the golden way to make money.This is why bitcoin and other altcoins do gain popularity because of this characteristics.

[Don Pedro Dinero]

If the gold value was based on what it takes to mine it then the price wouldn't be so high. After all, they use slave children to mine and pay the families peanuts. There are several but the most significant parameter is the quotation established by the "fixing".

If the volatility is not something that people can handle then the cryptocurrency market is certainly not for them. Because there is not a lot much more volatile than cryptos

I agree. The problem here is that we can see what the price is whereas value is more of a concept that we don’t have an algorism to calculate. Anyway, if we don’t take into account offer and demand we can’t explain the value of bitcoin as well as many other assets and goods.

Adam Smith was right in some of his opinions and wrong in others, but we can’t take his opinions as dogmas of the Church.

What is the cost of labor involved in making a 100$ note? It is more or less the same as the cost of labor involved in making a 1$ note.

[pitham1]

After many years I have developed a feel or intuition to tell me when prices are out of line.   When it comes to bitcoin I am at a loss.   I like the core concept of bitcoin and long term it seem like it will all work out but it’s value is another issue.   I just don’t have a feel for what it’s worth in exchange for food, a house, a car, gold equivalent.  It seem that it should be relatively close in value to the cost incurred by the bitcoin miners.   How do I find out what the current cost is to mine bitcoins.  It cost to mine a well know number kind of like the PE for a stork or index?

Actually you have got it the other way around. The cost of mining doesn't determine the value. The price (indirectly) decides the cost of mining.
Price increases --> More miners rush in --> Difficulty increases --> Cost of mining increases.

[odolvlobo]

The production and the monetary supply of Bitcoin are invariant, so the only long-term variable determining the price is demand. It doesn't matter what it costs miners to mine it.

In fact, the price determines the aggregate cost of mining, and not the other way around. That is because the cost of mining only determines who mines. It does not determine how much is mined.

[cybersofts]

Yes, bitcoin doesn't have long history to look in to but I think is the technology that people are waiting for because it provides freedom and privacy to people. Bitcoin is decentralized and bitcoin volatility happens as a result of market correction as you may already know that might happen to gold or stock as well. Bitcoin value go up and down but at high range sometimes unlike USD, Gold or Stock. Perhaps bitcoin volatility will stabilize more in years to come when more people invested in to it guess.

[Razick]

Adams Smith wrote that the price of all things are equivalent to the human labor involved in their exploitation.   The price of gold is determined by the cost in human labor to mine it.  It can then be exchanged for another commodity which takes an equal amount of labor to create it.

Over time I have been able to find ways to place a price on stocks which I can use to evaluate what their value is to me.   I can then buy and sell based on what I determine as value at any time.   

I’m not a currency speculator but I also believe the US dollar is being killed.   I don’t like having much of a cash position but would rather be fully invested.   At this time what I see is a highly inflated value of the S&P 500.  Any bonds other the very short term bonds come with too much risk tied to the Feds low interest rate policy and the increasing money supply along with quantitative easing which is placing too much fake money on the Feds balance sheet.

After many years I have developed a feel or intuition to tell me when prices are out of line.   When it comes to bitcoin I am at a loss.   I like the core concept of bitcoin and long term it seem like it will all work out but it’s value is another issue.   I just don’t have a feel for what it’s worth in exchange for food, a house, a car, gold equivalent.  It seem that it should be relatively close in value to the cost incurred by the bitcoin miners.   How do I find out what the current cost is to mine bitcoins.  It cost to mine a well know number kind of like the PE for a stork or index?

I have started to buy small amounts which I plan to hold but I really don’t like the volatility.  It is also difficult to invest in something when I don’t really have any history to give me a clue of somethings value.  I doubt I would hold if bitcoin went over 5000.  It seems to be moving a bit too fast.

Right off the bat I can tell you you are partially wrong, at least. The only thing used to value stuff is NOT the amount of work put into producing something. It is the QUALITY in doing so. And there are tons of other factors at play also. For example, why is gold 100x the price of silver? They both take a similar amount of time and effort to mine, yet one is vastly more valuable than the other. It is because of rarity. Silver is available in much greater quantities, and thus is not as valuable as its far rarer counterpart in gold.

[Altero]

As we take look back of bitcoin history from its existence, we truly amazed and totally a fast movement of price in the market. Since from the start, only few numbers of person who are trying to invest with bitcoin. But now, we can't imagine how many are they? Because they  want to take advantage from its promising price. This things signifies that it will take a big role in the community as it gives opportunity for us to have big chances of winning.

[Quantex]

As we take look back of bitcoin history from its existence, we truly amazed and totally a fast movement of price in the market. Since from the start, only few numbers of person who are trying to invest with bitcoin. But now, we can't imagine how many are they? Because they  want to take advantage from its promising price. This things signifies that it will take a big role in the community as it gives opportunity for us to have big chances of winning.

The role of the community now is at its highest point. Because, as you said, we have a big player pool for bitcoin. In the past, the number was really small compared to now.

The curve of demand and liquiditation will determine the future of bitcoin.

[Hexah]

As we take look back of bitcoin history from its existence, we truly amazed and totally a fast movement of price in the market. Since from the start, only few numbers of person who are trying to invest with bitcoin. But now, we can't imagine how many are they? Because they  want to take advantage from its promising price. This things signifies that it will take a big role in the community as it gives opportunity for us to have big chances of winning.

The role of the community now is at its highest point. Because, as you said, we have a big player pool for bitcoin. In the past, the number was really small compared to now.

The curve of demand and liquiditation will determine the future of bitcoin.

Exactly, the role of every bitcoin enthusiast has huge impact on the value of bitcoin right now unlike in the past that's why the value of bitcoin increased rapidly in this year because it is also in this year that many were engage to the world of bitcoin. And that's explains the volatility of bitcoin, it really has no fixed value that's why many huge investors don't like it because it's too risky if the price of bitcoin will decrease rapidly.

[shuhei]

Adams Smith wrote that the price of all things are equivalent to the human labor involved in their exploitation.   The price of gold is determined by the cost in human labor to mine it.  It can then be exchanged for another commodity which takes an equal amount of labor to create it.

Over time I have been able to find ways to place a price on stocks which I can use to evaluate what their value is to me.   I can then buy and sell based on what I determine as value at any time.   

I’m not a currency speculator but I also believe the US dollar is being killed.   I don’t like having much of a cash position but would rather be fully invested.   At this time what I see is a highly inflated value of the S&P 500.  Any bonds other the very short term bonds come with too much risk tied to the Feds low interest rate policy and the increasing money supply along with quantitative easing which is placing too much fake money on the Feds balance sheet.

After many years I have developed a feel or intuition to tell me when prices are out of line.   When it comes to bitcoin I am at a loss.   I like the core concept of bitcoin and long term it seem like it will all work out but it’s value is another issue.   I just don’t have a feel for what it’s worth in exchange for food, a house, a car, gold equivalent.  It seem that it should be relatively close in value to the cost incurred by the bitcoin miners.   How do I find out what the current cost is to mine bitcoins.  It cost to mine a well know number kind of like the PE for a stork or index?

I have started to buy small amounts which I plan to hold but I really don’t like the volatility.  It is also difficult to invest in something when I don’t really have any history to give me a clue of somethings value.  I doubt I would hold if bitcoin went over 5000.  It seems to be moving a bit too fast.

Bit coin　is very difficult to measure.
Although the price is determined once in terms of supply and demand, bitcoin is priced with very ambiguous indicators, unlike stock prices.

[Funeral Wreaths]

Adams Smith wrote that the price of all things are equivalent to the human labor involved in their exploitation.   The price of gold is determined by the cost in human labor to mine it.  It can then be exchanged for another commodity which takes an equal amount of labor to create it.

Over time I have been able to find ways to place a price on stocks which I can use to evaluate what their value is to me.   I can then buy and sell based on what I determine as value at any time.   

I’m not a currency speculator but I also believe the US dollar is being killed.   I don’t like having much of a cash position but would rather be fully invested.   At this time what I see is a highly inflated value of the S&P 500.  Any bonds other the very short term bonds come with too much risk tied to the Feds low interest rate policy and the increasing money supply along with quantitative easing which is placing too much fake money on the Feds balance sheet.

After many years I have developed a feel or intuition to tell me when prices are out of line.   When it comes to bitcoin I am at a loss.   I like the core concept of bitcoin and long term it seem like it will all work out but it’s value is another issue.   I just don’t have a feel for what it’s worth in exchange for food, a house, a car, gold equivalent.  It seem that it should be relatively close in value to the cost incurred by the bitcoin miners.   How do I find out what the current cost is to mine bitcoins.  It cost to mine a well know number kind of like the PE for a stork or index?

I have started to buy small amounts which I plan to hold but I really don’t like the volatility.  It is also difficult to invest in something when I don’t really have any history to give me a clue of somethings value.  I doubt I would hold if bitcoin went over 5000.  It seems to be moving a bit too fast.

Right off the bat I can tell you you are partially wrong, at least. The only thing used to value stuff is NOT the amount of work put into producing something. It is the QUALITY in doing so. And there are tons of other factors at play also. For example, why is gold 100x the price of silver? They both take a similar amount of time and effort to mine, yet one is vastly more valuable than the other. It is because of rarity. Silver is available in much greater quantities, and thus is not as valuable as its far rarer counterpart in gold.

as much as i agree with what you were saying. so it is just that we are saying, it is all because of supply and demand, so just like your example why is that gold is more valuable than silver? Of course the supply also matters, just like what you are pointing out, there is almost enough quanitity to supply the needs of people or even more, rather than in gold, or as we speak bitcoin that has only limited supply and almost everybody would strive to get one, so as expected that too many will bid until the price was higher.

[atc1-REAL]

There was this saying in 2014-15 when the price had dropped quite a bit that 1 btc=1 btc. Apart from that, btc has no intrinsic value. While some argue that it is the PoW concept that lends btc its value, that is being challenged right now as the price has shot up multifold without any difference in the way that it is being mined except the difficulty. So, value is now being define by market forces alone.

[konco_kenthel]

Adams Smith wrote that the price of all things are equivalent to the human labor involved in their exploitation.   The price of gold is determined by the cost in human labor to mine it.  It can then be exchanged for another commodity which takes an equal amount of labor to create it.

Over time I have been able to find ways to place a price on stocks which I can use to evaluate what their value is to me.   I can then buy and sell based on what I determine as value at any time.   

I’m not a currency speculator but I also believe the US dollar is being killed.   I don’t like having much of a cash position but would rather be fully invested.   At this time what I see is a highly inflated value of the S&P 500.  Any bonds other the very short term bonds come with too much risk tied to the Feds low interest rate policy and the increasing money supply along with quantitative easing which is placing too much fake money on the Feds balance sheet.

After many years I have developed a feel or intuition to tell me when prices are out of line.   When it comes to bitcoin I am at a loss.   I like the core concept of bitcoin and long term it seem like it will all work out but it’s value is another issue.   I just don’t have a feel for what it’s worth in exchange for food, a house, a car, gold equivalent.  It seem that it should be relatively close in value to the cost incurred by the bitcoin miners.   How do I find out what the current cost is to mine bitcoins.  It cost to mine a well know number kind of like the PE for a stork or index?

I have started to buy small amounts which I plan to hold but I really don’t like the volatility.  It is also difficult to invest in something when I don’t really have any history to give me a clue of somethings value.  I doubt I would hold if bitcoin went over 5000.  It seems to be moving a bit too fast.

I think if you have a large capital to invest try to run the first because just need longanimity to investors can get the most out later but if you don't have the attitude of better do not insist to try investment because it will be the obstacles are very large when you are in the presence of the second choice advantage that could gain or loss.

[BillCoin]

I don't agree with Adam Smith.
Bitcoin price is being determined by the free market, it worth what people are willing to pay for it.

The more the bitcoin price goes up, the more it becomes profitable to mine, which makes more miners to join the circulation, which increases the difficulty of mining a bitcoin, and makes it cost more to mine.

I think that the price of something is only related to how much people want it and are willing to pay for it.