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August 07, 2018, 02:30:32 PM |
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There is no such thing as intrinsic value. Value is, and always will be a completely subjective and situational term. If value was measurable, there would be no profit. Every trade would be of equal value. I would not trade the dollar for the cookie if the cookie had an intrinsic value equal to $1.20. I’d lose .20 on the trade and you’d gain. We’d only ever trade if we were indifferent. Thanks to subjective value, both parties to a trade profit. We know this because the trade was made.
So the reason a dollar, an ounce of gold, a cookie, or a Bitcoin have any value at all is because people want them. If there was some changes in society, like a collapse of the US government, the discovery of a new precious metal, changes in dietary attitudes, or a new altcoin, all the above mentioned objects would could have no value to anyone at all.
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