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BTC does actually have a baseline value: the cost of the electricity spent to mine it. Of course, whether that value is $1 or $1000 depends on the number of pe
by ch4ch4 10y ago
BTC does actually have a baseline value: the cost of the electricity spent to mine it.
Of course, whether that value is $1 or $1000 depends on the number of people who believe in the currency enough to pay for the power to mine it.
- marcell 10y agoThat's not a baseline value, that's a baseline cost. It costs money to mine a bitcoin, but that doesn't mean anyone will want to buy it. Gold is a bit different since it has some baseline value from practical uses, but the store of value use case dominates those.
- eru 10y agoAnd the baseline cost of bitcoin even goes down, when nobody's mining.