How to explain the value of bitcoin

[hercules006]

The attacks in bitcoin are mostly headed in to the argument that bitcoin has no value. Though there are a lot of argument to throw, I will share some point to invalidate their argument. Because it's really invalid.

In the field of economics, it says that, there are characteristic to determine if an object has value.

First, scarcity, if X (E.g. Bitcoin) has LIMITED supply then MAYBE it has value. Same in the nature of gold, gas and other minerals, one of the reason why its very expensive and it's getting more expensive as the time pass because it has limited supply.

If you read it carefully I use the word "maybe" because scarcity dont mean value, It's a factor that affects the value. If X is scarce but it has no use or not needed, it wont matter. X must have viable use, that would lead us to the second principle of economics.

The "intrinsic value" can we use bitcoin? will it ease our life? Does it have a viable use? Guest what? Its a YES! With bitcoin we can send money around the world, fast and secure without any intermediary. Directly! Anytime! anywhere! online.

Without bitcoin or other crypto those characteristic of money that is present in bitcoin (e.g divisible into millidecimal, fast, secure etc) is imposible to find on FIAT! Stop on that. IT'S IMPOSSIBLE! Tell them.

To sum up, according to the principle of economics, to know if X has value it must posses some characteristics which is

1. Scarcity
2. Intrinsic value

Does bitcoin had those kind of characteristics? Yes! Its scarce and has intrinsic value. So according to economics, BITCOIN HAS VALUE! Tell it to them, then leave.

If you find this valueable dont forget to merit me! Yaaay!  

[hot_ads]

Although the scarcity is very important, it is mainly hype. Although bitcoin is known by many people, its practicability and applicability are still very low, and it is very speculative.

[franky1]

In the field of economics, it says that, there are characteristic to determine if an object has value.

First, scarcity, if X (E.g. Bitcoin) has LIMITED supply then MAYBE it has value. Same in the nature of gold, gas and other minerals, one of the reason why its very expensive and it's getting more expensive as the time pass because it has limited supply.

If you read it carefully I use the word "maybe" because scarcity dont mean value, It's a factor that affects the value. If X is scarce but it has no use or not needed, it wont matter.

my analogy for this is:

my dog does 2 poop a day. for the first 4 years thats a total of 2920. poops
for the next 4 years, my dog only does 1 poop a day. thats 1460 poops
then for the last 4 years of life. only 1 poop every 2 days. thats 730 poops

my dogs poop is scarce, only 5110 poops will be available... want some?.. its more scarce than bitcoin
.. reply. nope

[wasta]

In the field of economics, it says that, there are characteristic to determine if an object has value.

First, scarcity, if X (E.g. Bitcoin) has LIMITED supply then MAYBE it has value. Same in the nature of gold, gas and other minerals, one of the reason why its very expensive and it's getting more expensive as the time pass because it has limited supply.

If you read it carefully I use the word "maybe" because scarcity dont mean value, It's a factor that affects the value. If X is scarce but it has no use or not needed, it wont matter.

my analogy for this is:

my dog does 2 poop a day. for the first 4 years thats a total of 2920. poops
for the next 4 years, my dog only does 1 poop a day. thats 1460 poops
then for the last 4 years of life. only 1 poop every 2 days. thats 730 poops

my dogs poop is scarce, only 5110 poops will be available... want some?.. its more scarce than bitcoin
.. reply. nope

If you have 4000 poops or 4 nobody wants dogshit.
Above you an other calling it a hype.
Hype or not it triggers demand and high prices.
Scarcity has nothing to do with demand or supply.

We have no Koala in zoo's in Europe or the USA, so no koala poop.
No demand for koala poop either so it has no value although scarce.

You need demand.
Demand is the only thing that adds value to a item or commodity.



 

[hercules006]

In the field of economics, it says that, there are characteristic to determine if an object has value.

First, scarcity, if X (E.g. Bitcoin) has LIMITED supply then MAYBE it has value. Same in the nature of gold, gas and other minerals, one of the reason why its very expensive and it's getting more expensive as the time pass because it has limited supply.

If you read it carefully I use the word "maybe" because scarcity dont mean value, It's a factor that affects the value. If X is scarce but it has no use or not needed, it wont matter.

my analogy for this is:

my dog does 2 poop a day. for the first 4 years thats a total of 2920. poops
for the next 4 years, my dog only does 1 poop a day. thats 1460 poops
then for the last 4 years of life. only 1 poop every 2 days. thats 730 poops

my dogs poop is scarce, only 5110 poops will be available... want some?.. its more scarce than bitcoin
.. reply. nope

If you have 4000 poops or 4 nobody wants dogshit.
Above you an other calling it a hype.
Hype or not it triggers demand and high prices.
Scarcity has nothing to do with demand or supply.

We have no Koala in zoo's in Europe or the USA, so no koala poop.
No demand for koala poop either so it has no value although scarce.

You need demand.
Demand is the only thing that adds value to a item or commodity.



 

I dont get your point, why does poop was use? And why seems scarce is a main point you consider and not the whole idea? I dont see any relevant argument you have? Seems like you had suffer from major dip so your dumping here your emotion

[Carmen01]

It's so conveniece to use even it's have volatile price,i think it's create to use best in transaction even we can't earn here still it's so good to use another this is like a good past time like you play basketball with sure earnings and we can learn anything here,bitcoin is knowledge about everything so it's like life that so valuable and if your here you will become a better person.

[hercules006]

In the field of economics, it says that, there are characteristic to determine if an object has value.

First, scarcity, if X (E.g. Bitcoin) has LIMITED supply then MAYBE it has value. Same in the nature of gold, gas and other minerals, one of the reason why its very expensive and it's getting more expensive as the time pass because it has limited supply.

If you read it carefully I use the word "maybe" because scarcity dont mean value, It's a factor that affects the value. If X is scarce but it has no use or not needed, it wont matter.

my analogy for this is:

my dog does 2 poop a day. for the first 4 years thats a total of 2920. poops
for the next 4 years, my dog only does 1 poop a day. thats 1460 poops
then for the last 4 years of life. only 1 poop every 2 days. thats 730 poops

my dogs poop is scarce, only 5110 poops will be available... want some?.. its more scarce than bitcoin
.. reply. nope

If you have 4000 poops or 4 nobody wants dogshit.
Above you an other calling it a hype.
Hype or not it triggers demand and high prices.
Scarcity has nothing to do with demand or supply.

We have no Koala in zoo's in Europe or the USA, so no koala poop.
No demand for koala poop either so it has no value although scarce.

You need demand.
Demand is the only thing that adds value to a item or commodity.



 

You have good point there, demand is very important thats why, as I said you have to also consider #2 the intrinsic value. Anything wont have demand if it has no intrinsic value

[Ethan Becker]

Miners are in charge of making sure bitcoin transactions made by users are recorded and legit. Simply put, they do this by grouping every new bitcoin transaction made during a set time frame into a block. Once a block is made, it is added to the chain, which is linked together with a complex cryptography. This chain of blocks is the public ledger, and its extreme complexity is what currently protects transactions.

[Shrinath]

Bitcoin is a different kind of asset that can be difficult for people to understand. New things usually are. And while Bitcoin is nearly nine years old, it represents a completely new type of asset. As investors near the Bitcoin iceberg, the first thing they see is payments. True, Bitcoin is certainly used for payments, and this is an important part of its value. However, it’s not widely used for payments and, while it may be increasingly important over time, it isn’t the most important component of Bitcoin’s value today. However, people don’t generally use Bitcoin for payments because goods aren’t broadly priced in BTC terms. Goods aren’t broadly priced in BTC terms because, if they were, the price would have to update several times each minute just to maintain a consistent revenue for the seller. In short, the major advantage to using Bitcoin for payments is that it is volatile, which is neither a great ingredient for payments (medium of exchange) nor the pricing of goods (unit of account). While payments are the first thing that people think of for Bitcoin, the reason that most people buy today is its utility as “digital gold”—this is the center of buoyancy for the Bitcoin iceberg. People are attracted to an asset that is provably scarce, nearly impossible to seize or censor, and part of a decentralized and permission-less network that anyone can participate in.

Lets talk about two early examples within Bitcoin: multi-signature transactions and time-locked transactions. The former allows me to send Bitcoin to an address and specify that the value cannot be moved. Similarly, time-locked transactions allow me to send Bitcoin to an address and specify that it can’t be moved until some specific point in the future. Both of these examples are things I could hack onto legacy financial infrastructure. I could create a trust, for example. But these things require hours of legal cost and logistics time. In Bitcoin, that cost and effort has been reduced to a few lines of code. These are two early examples of what I believe will eventually be dozens and then hundreds of unique capabilities. Most encouragingly, young developers are picking up these puzzle pieces and assembling them in novel ways that could fundamentally change the fabric of finance and the way we transact.

Ultimately, Bitcoin’s value as a programmable asset is the most viable path to mass adoption: People will adopt Bitcoin because it’s the easiest (or only) way to complete tasks