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Author Topic: Bitcoin's value in a nutshell.  (Read 1381 times)
Anonymous
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August 24, 2011, 06:29:01 PM
 #1

I've heard too many people claim that Bitcoins are fallible because they are virtual and backed by nothing. I just explain the following facts:

- Bitcoin holds it value.

- Bitcoin has little overhead of exchange.

Therefore its only limit how people perceive it and desire it. If people want Bitcoin to be valuable, it will be and it has proven to be valuable thus far. If its production remains scarce (which it is by design), its value will be consistently above zero and reliably liquid.

It's really that simple. The backing is human desire and human desire dictates value to be stored in scarce objects as it has for over 6000 years.
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August 24, 2011, 06:46:58 PM
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There is a good concise summary in a recent Bitcoin article http://www.gadgetking.com/2011/08/23/mining-bitcoin-for-fun-and-profit/
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For the people who slept through their Economics – assets can be tangible and intangible, and while the value of an asset can fluctuate based on supply and demand, the market value of an asset represents what someone is willing to pay for it– not the value it is offered for or intrinsically worth.  Much has been written on the Bitcoin by people much smarter than me and if you chose to steep yourself in the academics if it – feel free to do so here.  For the people preaching superiority of government backed financial systems please refer to the freaking Zimbabwe or the epic beating received by the United Kingdom from George Soros during the Black Wednesday.
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August 24, 2011, 06:50:43 PM
 #3

Bitcoin - Can't touch this

Bitcoin - As solid as love

Play Bitcoin Poker at sealswithclubs.eu. We're active and open to everyone.
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August 24, 2011, 11:37:46 PM
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The value of Bitcoin is equal to the amount you would loose doing the transaction by other means.
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August 25, 2011, 12:48:31 AM
 #5

The value of Bitcoin is equal to the amount you would loose doing the transaction by other means.

Not quite though. Suppose there is task X that is worth 100 units to you. Without Bitcoin it would cost you 200 units to accomplish, so you don't do it. With Bitcoin it only costs you 60 units so you do it and profit by 40 units, not 100 or 200. Bitcoin makes you 40 units better off and likely makes your partner better off by some amount as well.

Play Bitcoin Poker at sealswithclubs.eu. We're active and open to everyone.
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August 25, 2011, 01:37:13 AM
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A time will soon come when capital controls will be imposed on the citizens of the U.S. and probably other western countries in concert (due to their obeisance and fear of the U.S. financial mafia).  Victims of this new regulation who have not already structured their assets into friendlier jurisdictions will realize that precious metals are difficult to transport across well scrutinized nation state borders.  It is at this moment in their lives that something like bitcoin will be attractive to them.
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August 25, 2011, 02:03:10 AM
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Victims of this new regulation who have not already structured their assets into friendlier jurisdictions will realize that precious metals are difficult to transport across well scrutinized nation state borders.  It is at this moment in their lives that something like bitcoin will be attractive to them.

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