well in this context i thought we were narrowing down the focus to something that takes alot of energy and that's what supposedly gives it "value" which i disagree. you can expend alot of energy on something but does that automatically give it value?
you are yet again forgetting the layering affect. and the different wording
something that people find desirable and useful (their sentiment(values)).. turns a liability(cost) into a asset(value)
values(sentiment)+value(cost)=valuable
combining the values and value = something "becomes valuable"
valuable=able to have value
costing alot doesnt "give value" on its own
but its that underlying cost thats the financial value amount underlying the price of an item that has values
EG bitcoin jan2009-feb2010 had values(sentiment desire/need) but didnt have a value(economic number)
bitcoin did not become valuable until ~march 2010
just concentrating on the words "backed by value" (not values/valuable))
is the backed by a underlying cost no one wants to sell below thus its backed by a minimal amount everyone refuses to go below. backing a minimal amount(value)
bitcoins is backed by a value of $15k. no one wants to sell below this right now. thus its backed and supported.
the price is higher due to the speculative part of sentiments of individuals
but underlying the random whims of individuals. is the ultimate bottom cost no one sells below buy everyone is willing to pay that or more.. thus backed by that value
You mean these? I'd say bitcoin meets most of them pretty well but not all of them sufficiently for example .. the "storability" one is also a bit suspect since to get to the point of being able to store your own bitcoin, most people are going to be relying upon banks and financial institutions
banks ?
no bank has offered a bank account to put your bitcoins in
if you mean exchanges used as custodians.
you dont store your own bitcoin in a custodian. .. once you transfer your coin to a custodian address, they are no longer "your own"
How do you think most people obtain bitcoin? They transfer fiat from their bank to a centralized exchange and hope the exchange gives them some bitcoin
banks dont store/offer bitcoin.BANKS ill repeat BANKS do not. they offer FIAT services
people can use banks to service their FIAT transfers. but BANKS dont service bitcoin custody.
as for other businesses (exchanges) well if the bitcoin is not on your key the coin is not yours. you have no legal rights to the coin, you are stuck with whatever rights the service whichs to offer in its terms and coditions to privilige of access to balance at whatever rate they may decide..
yes good honourable exchanges do offer 1:1 but thats something you need to check a businesses terms and conditions for.
exchanges. under their business practice and service T&C may decide to allow users to do things with balance the business stores in its databases. where the business decides to honour a 1:1 swap of their mysql balance for a coins deposit/withdrawal. but that can easily change by them change their business terms and conditions..
do not confuse a crypto exchange for the BITCOIN protocol/rules
you see this happen with fiat. banks change there terms of service about fiat. its where they change interest rates or monthly charges, or rates, or fee's or other messy things where people dont always get back what they handed to a bank
do not confuse a bank with a bank note. once you hand abank note to a bank. you lose rights over the bank note. they can and do limit your access to the bank notes you deposited(handed to them)
do not confuse the bitcoin networks storage.. with businesses terms and conditions of users membership of balance on their database..
do not trust a exchange.. use them by all means for quick activity. but dont think of exchanges as wallets or the bitcoin network rules
