AquaticBob (OP)
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June 22, 2013, 07:55:34 PM |
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So, how is an online cryptographic currency worth, for example, over $100 US dollars?
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the joint
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June 22, 2013, 07:56:55 PM |
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So, how is an online cryptographic currency worth, for example, over $100 US dollars?
Belief. |
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nobbynobbynoob
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June 22, 2013, 07:58:12 PM |
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So, how is an online cryptographic currency worth, for example, over $100 US dollars?
Belief. ...which underlies the value or price of basically anything. |
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xxjs
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June 22, 2013, 07:58:35 PM |
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The market decides. Ready to aquire some? - the value goes up. Sell? Price goes down. There is nothing more.
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ktttn
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Capitalism is the crisis.
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June 22, 2013, 07:59:27 PM |
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Even more bafflingly,
How is a federal reserve note worth BTC0.01?
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Wit all my solidarities, -ktttn Ever see a gutterpunk spanging for cryptocoins?
LfkJXVy8DanHm6aKegnmzvY8ZJuw8Dp4Qc |
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jackjack
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May Bitcoin be touched by his Noodly Appendage
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June 22, 2013, 08:00:07 PM |
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Even more bafflingly,
How is a federal reserve note worth BTC0.001?
That's indeed a better question |
Own address: 19QkqAza7BHFTuoz9N8UQkryP4E9jHo4N3 - Pywallet support: 1AQDfx22pKGgXnUZFL1e4UKos3QqvRzNh5 - Bitcointalk++ script support: 1Pxeccscj1ygseTdSV1qUqQCanp2B2NMM2 Pywallet: instructions. Encrypted wallet support, export/import keys/addresses, backup wallets, export/import CSV data from/into wallet, merge wallets, delete/import addresses and transactions, recover altcoins sent to bitcoin addresses, sign/verify messages and files with Bitcoin addresses, recover deleted wallets, etc. |
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BitcoinBoss
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June 22, 2013, 08:59:23 PM |
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Even more bafflingly,
How is a federal reserve note worth BTC0.01?
+1  |
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MarcusBTC
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June 22, 2013, 09:06:59 PM |
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It has value because it is useful and scarce |
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pepe
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June 23, 2013, 02:23:24 AM |
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Because it's useful, and many people think so.
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ChazM
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June 23, 2013, 02:32:53 AM |
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How is anything worth anything? Because we want it, and we're willing to give stuff away for things we want. It could be Bitcoins, dollars, or just our old junk. If somebody else wants what I'm giving away, that is value.
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MstCoin
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June 23, 2013, 02:53:51 AM |
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I hear, some people have started buying it up, to store wealth, because its safer than a bank/ I myself, I mine it for extra beer money lol
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xxjs
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June 23, 2013, 08:48:12 AM |
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I hear, some people have started buying it up, to store wealth, because its safer than a bank/ I myself, I mine it for extra beer money lol
Yes, the tendency towards saveing is strongly individual. |
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mprep
Global Moderator
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In a world of peaches, don't ask for apple sauce
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June 23, 2013, 09:51:08 AM |
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I hear, some people have started buying it up, to store wealth, because its safer than a bank/ I myself, I mine it for extra beer money lol
Yes, the tendency towards saveing is strongly individual. Actually taking bitcoin as sort of a savings account is kind of risky. |
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herzmeister
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June 23, 2013, 10:03:57 AM |
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Even more bafflingly,
How is a federal reserve note worth BTC0.01?
Force. So, how is an online cryptographic currency worth, for example, over $100 US dollars?
Utility. |
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xxjs
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June 23, 2013, 10:58:20 AM |
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I hear, some people have started buying it up, to store wealth, because its safer than a bank/ I myself, I mine it for extra beer money lol
Yes, the tendency towards saveing is strongly individual. Actually taking bitcoin as sort of a savings account is kind of risky. Yes, kind of. In my opinion, the reward/risk ratio is far better than bank deposits, or house investment, or any other saving option currently available. |
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xxjs
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June 23, 2013, 11:13:46 AM |
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The future value of bitcoins can be stipulated by number of users and their bitcoin holding preferences. Say there will be a billion users, each prefer to hold say 2 month's wages in bitcoin (because it will be the most stable and useful money). You do the math, it will be a hughe number in 2013-dollar equivalents.
Correspondingly we can compute the value now. I believe there are 10000 Silk road users, each holding 100 dollars worth in bitcoins, and only for the duration of a trade, say one week. That means a total value of 10000*100/50 =5000 USD total. Divide by 10 million existing coins, and you get 0.0005 USD per coin.
The difference is that some people, the entrepreneurs, see the former calculation, and drives up the price prematurely by saving in coins.
Call it speculation, but it is necessary to get the system up and going. Besides, everybody speculates. If you go to Argentina these days on vacation, you would convert your dollars in small portions during the stay, but an argentinian visitor to USA would convert his pesos in one lump at the beginning of the stay. That is speculation on both parties. There are uncountable other examples.
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DannyHamilton
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June 23, 2013, 08:26:24 PM |
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So, how is an online cryptographic currency worth, for example, over $100 US dollars?
I'm sorry, I don't understand your question. Perhaps you could re-phrase it? The best I can make out of what you've asked is that you are asking: "So, how can something that is worth something be worth, for example, something?" I could ask you a similar question: "So, why would an online cryptographic currency be worth, for example, less than $1000 US dollars? |
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