3 ms·
that is exactly how markets work. > bitcoin has no intrinsic value, just a exchange rate with other things 1. It has proof-of-work, which gives it value 2. Su
by python-guy-vt 9y ago
that is exactly how markets work.
> bitcoin has no intrinsic value, just a exchange rate with other things
1. It has proof-of-work, which gives it value
2. Supply of the coin and demand for the coins determine the price.
The only thing that can vary widely is the demand, the supply cannot be fucked with (unlike fiat currency). It is impossible for whole bunch of new coins to suddenly appear out of thin air. There is no way to artificially inflate the supply.
- querulous 9y agowe're not talking about the number of bitcoins though, we're talking about it's value
- python-guy-vt 9y agoyou can't talk about value without talking about supply
- Nursie 9y agoProof of work doesn't give it value. That value (energy) is lost to heat, and the amount put in tends to rise with the market value. The value dictates the amount of PoW needed, not the other way round.
- FooHentai 9y ago>1. It has proof-of-work, which gives it value "I burned a bunch of electricity and created a cryptographically provable magic token". There is no value here beyond exchanges with the other bitcoin speculators around you. The value you describe is no different to the value of a pixel on the million dollar homepage. There will be a point where the emperor is revealed to have no clothes and when you try to extract actual value from the bitcoins that you are holding (i.e. sell them), you will find there is nobody who wants to buy. Although if you like, I'll trade for beanie babies. I've got rare ones, nobody else has these. They only made a few.