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December 18, 2013, 05:16:34 PM |
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I have been thinking about Bitcoins as I watch the real world price drop...
Do you realize that Bitcoins themselves have a value that at some point and time was placed on it by the first person to accept BTC as payment for something?
That one, singular person set the present and future commodity value of the coin.
Think of it like this...
(totally hypothetical) Let's say I got in early and mined 100 BTC. Now I want more, but what I want to do is sell something to someone to get more BTCs, hence the initial idea behind BTC. But I do not know what a BTC is worth, because no one has given it a value yet. So I sell this item to a guy for 10 BTC. BAM, I just set the precedence (value) for BTC.
From that point forward all transactions are based on his one transaction setting the value for BTC.
Any thoughts?
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