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> I have the theory, that the value of a cryptocurrency is equal to the sum of transaction fees people will spend in the future, discounted for inflation. How
by jstanley 9y ago
> I have the theory, that the value of a cryptocurrency is equal to the sum of transaction fees people will spend in the future, discounted for inflation.
How does that follow, at all?
Is the total value of all the USD in the world equivalent to the total transaction fees paid on USD in the future, discounted for inflation?
- Changu 9y agoThe approach I use here is to not see Bitcoin as a currency, but as a money sending service like Visa. The incentive to buy BTC is that one wants to use the system. How much is the usage of the system worth? It is the transaction fees. They reflect what people are willing to pay to use the system.