Bitcoins and Johnny Walker

[BitcoinWalker]

How do you set a Bitcoin price?  How do you know if the price is fair?  Could you set some type of gold standard, but without the hassle of holding gold?

In my recollection, money has taken the form of commodities at various points in history.  Such as a barrel of whiskey or tobacco during Colonial Times.  Commodities would be good, because they don't change, or don't change much.

You really want prices to be stable.  How do you know that you receive value if prices aren't stable?

Let's say you can buy one black Jonnie for 1 Bitcoin. Then, you may be in business.  

[Source: https://twitter.com/BootsandOilBlog]

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[odolvlobo]

How do you set a Bitcoin price?

You don't.

How do you know if the price is fair?

There is no such thing as a fair price, so you know that the price, whatever it is, can never be fair.

Could you set some type of gold standard, but without the hassle of holding gold?

No.

There. I answered all of your questions. Do I get a prize?

[BitcoinWalker]

How do you set a Bitcoin price?

Do I get a prize?

No. Your answers were not adequate and sufficient.

[Elwar]

Bitcoin is priced at about 5g of gold right now.

[coretechs]

Do I get a prize?

[mogrith]

How do you set a Bitcoin price?
Open an exchange and let the market decide

How do you know if the price is fair?
Because you snd the person you trade with think it is. If you think $200.00/BTC is unfair don't buy/sell. If no one buys your 1BTC for $852.38 it probably unfair. Also if you see it was $200 5 min ago and you offer to sell it at $50 go ahead be happy you sold for a 'fair' price.

Could you set some type of gold standard, but without the hassle of holding gold?
Not unless you run your own country and set laws and punish people for not following it. USA used to do it but they held gold

In my recollection, money has taken the form of commodities at various points in history.  Such as a barrel of whiskey or tobacco during Colonial Times.  Commodities would be good, because they don't change, or don't change much.

That's not money that's barter.  Can you save commodities? is a 1yr old barrel of whisky worth the same as a 25yr old one.

[hayek]

Welcome to the free market.

If you stick around a while the fear you are feeling goes away.

[AndrewWilliams]

I get what he is trying to say.

In the mining days out West, traders would be able to trade items like whiskey or cigars instead of dollars.

The commodity value of items like that formed a baseline for the dollar value, or something like that. But I'm pretty sure it had more to do with the lack of availability of buying whiskey and tabacco due to lack of stores...

[franky1]

going with the gold scenario of the old west..

gold miners would never sell the average amount of gold they get per day for anything less then a day's works costs + a little extra for pleasure costs

EG if they only get 1gram of gold a day then they would price that gold at enough to cover their days worth of food, drink, materials etc. and would never sell less then that price. if they ever did, they might aswell give up..

so true value prices (the LOW price) will always be around the minimal cost of living and working on creating gold/bitcoin.

at the moment the last 6 months have shown $70 is the low point in july and with new asics causing miners to get less coins, means its costing them more to mine, which has caused the LOW of september being $109..

anyone willing to sell less then $109 in september is either not a miner and would sell for anything in a panic.. or more simply, dont care about bitcoins in the first place.

they key when trying to track true value is to always look at the monthly LOW's. anything else is just speculation and profiteering

[odolvlobo]

going with the gold scenario of the old west..
gold miners would never sell the average amount of gold they get per day for anything less then a day's works costs + a little extra for pleasure costs
EG if they only get 1gram of gold a day then they would price that gold at enough to cover their days worth of food, drink, materials etc. and would never sell less then that price. if they ever did, they might aswell give up..
so true value prices (the LOW price) will always be around the minimal cost of living and working on creating gold/bitcoin.
at the moment the last 6 months have shown $70 is the low point in july and with new asics causing miners to get less coins, means its costing them more to mine, which has caused the LOW of september being $109..
anyone willing to sell less then $109 in september is either not a miner and would sell for anything in a panic.. or more simply, dont care about bitcoins in the first place.
they key when trying to track true value is to always look at the monthly LOW's. anything else is just speculation and profiteering

Your argument assumes that the only people selling bitcoins/gold are the miners. That is not the case, so fewer miners does not mean less gold/bitcoin for sale, and whether miners can make a profit or not has no effect on the price.

[balanghai]

Just make sure when you have the gold in hand, pay taxes.

[franky1]

going with the gold scenario of the old west..
gold miners would never sell the average amount of gold they get per day for anything less then a day's works costs + a little extra for pleasure costs
EG if they only get 1gram of gold a day then they would price that gold at enough to cover their days worth of food, drink, materials etc. and would never sell less then that price. if they ever did, they might aswell give up..
so true value prices (the LOW price) will always be around the minimal cost of living and working on creating gold/bitcoin.
at the moment the last 6 months have shown $70 is the low point in july and with new asics causing miners to get less coins, means its costing them more to mine, which has caused the LOW of september being $109..
anyone willing to sell less then $109 in september is either not a miner and would sell for anything in a panic.. or more simply, dont care about bitcoins in the first place.
they key when trying to track true value is to always look at the monthly LOW's. anything else is just speculation and profiteering

Your argument assumes that the only people selling bitcoins/gold are the miners. That is not the case, so fewer miners does not mean less gold/bitcoin for sale, and whether miners can make a profit or not has no effect on the price.

my argument assumes there is a tail off of a large amount of people willing to sell, and then there are smaller amount of people that would sell cheaper because to them they dont see bitcoin as having a cost value to them, the way a miner would.. and so theses non miners would still sell at a silly lower then average price, purely due to panic.

but due to the majority having the smarts to know the average miner costs etc, they collectively refuse to sell lower.. thus the price didnt tank to 2c in the last year..