intrinsic value is not profit.
. . .
bitcoins value is:
the underlying cost below the price.
Please make up your mind.
Wouldn't the difference between cost and price BE "profit"?
It seems you first say that "intrinsic value is not profit", and then you turn around in the exact same post and say that bitcoin's value is it's profit. Or are you saying that "cost" and "value" are synonyms? If that's what you're trying to say, then you are obviously and clearly incorrect. It could easily cost someone $1000 to create something which has a value of much MUCH less than $1000.
such as gold mining cost of ~$900
. . .
gold value is over $1k
Ok, so now you are indicating that the "value" is the PRICE?
There are a lot of words here, and I don't think you've even decided for yourself yet what they mean to you, let alone what society as agreed as the standard definition of these things. Here are some terms to think about a bit in case you get involved in discussions like this one in the future:
- Intrinsic Value
- Market Value
- Personal Value
- Supply Curve
- Demand Curve
- Equilibrium Price
- Market Price
- Personal Price
- Opportunity Cost
- Use Cost
- Storage Cost
- Aquisition Cost
- Bid
- Ask
- Consumer Surplus
- Producer Surplus
.. if it was as simple as "supply.demand" then you should demand bags of dog poo..
You clearly have no understanding of how the terms supply and demand are used.
The fact that a supply of something exists NEVER means that an equal demand for that thing will exist at all prices.
Supply and demand are two separate curves. The equilibrium price for that thing is the point where the supply curve and the demand curve cross each other.
In the case of dog poo, the demand curve crosses the supply curve at a price very close to $0 (or perhaps somewhere below $0, since many people are willing to accept negative dollars in exchange for the poo that their dog creates, and there are quite a few people that are willing to pay negative dollars to acquire that dog poo).
.. oh wait. not interested. .. guess its not as simple as a supply=demand..
Nobody in this conversation (other than YOU) ever said (or even implied) that supply and demand are synonyms. Supply only equals demand when the price is at equilibrium.
grossed out at that thought.. ok lets take fruit farming..
if you think a banana is only valued for demand.
Not sure what you are trying to say here, but yes, Those that supply bananas only value it BECAUSE there is demand for it at a price that is higher than their costs.
then you have no clue about farming/shipping costs
Those are part of the supply costs. They play a part in how much supply will exist.
learn that things have TWO "prices"
Things have a lot more than just two "prices".
a value and a sale
A "value" may or may not be a price. A "sale" is an instantaneous price at a specific moment in time. There are many factors that can influence what that sale price is at that moment.
the value is BELOW the sale price.
All types of "value"? Always? Nah.
when you can learn price and value are 2 metrics and not the same thing. you can learn beyond grade school stuff
Most grade schooler's already understand that. It seems you may need to learn a bit beyond that though.
golds VALUE is over $900..
Depends a bit on what type of value you are talking about. I'd argue that its "intrinsic value" is FAR less than that. For me, it's "personal value" is probably closer to $500 per ounce.
gold PRICE is over $1600
when the PRICE is over valued by multiples. its deemed as inflated/bubble/speculated
its why gold struggles to stretch beyond a 2x price of value
never confuse value with price
Certainly, but you just pointed out that cost (which you keep calling "value" for some reason) does constrain price.
the PRICE is above the VALUE MINING COST because there is demand the demand at that price is equal to the supply at that price.
its the combination of supply and demand that makes it over $600 more than VALUE MINING COST
FTFY.
