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    Author Topic: The intrinsic value of a bitcoin  (Read 4899 times)
    johnyj
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    June 02, 2013, 07:12:01 PM
     #21

    franky1 you are confusing 'value' with 'cost'.
    Value (economics), a measure of the benefit that an economic actor can gain from either a good or service

    Bitcoins does not provide a gain based on the effort that is taken to create them. A bitcoin on it's own does not even provide any benefit, only the properties of the network can provide one.

    addendum: You can also not imply that the value must always be larger than the cost, it is normally true under sound economical conditions, but this is not always the case. Certain "renewable" energy sources for example, like alcoholic fossil fuel substitutes take more energy to create than they provide historically. This is possible because of irrational market participants like politicians who provide subvention for these technologies.


    Value, to its root, is a psychological phenomenon: "I like it, I want it", just because people like it, want it, it has value


    Why bitcoin will appreciate forever: https://bt.irlbtc.com/view/277275.msg3244038#msg3244038
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