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I think bitcoin would need to be valued based on it's replacement value. The transaction fees other networks charge to transfer assets. intercontinentalexchang
by sharemywin 9y ago
I think bitcoin would need to be valued based on it's replacement value. The transaction fees other networks charge to transfer assets.
intercontinentalexchange has a value. visa has a value. etc.
- sharemywin 9y agoNo company has an intrinsic value either. If I fired all the employees, sold all the assets it would be worth nothing. The transactions are the value. The network has value. If I add up all the times people buy something with bitcoin and sell something for bitcoin and compare that against the fees the would incur it's generated some kind of value. It's just dispersed to the people using it not a central company. Is it a good way to buy and hold...of course not.
- mateo411 9y agoNo, that's called the book value of the company. At the end of that process you would have an amount of money worth the book value.
- sharemywin 9y agoAnd if you sold a book in bitcoin and bought something with it there must have be some value transfer.
- smt88 9y agoI don't understand your point. If you have a functioning company making something and sell it, your company is worth almost nothing. That's true. But those people and assets are still useful to someone else. They have a value. Bitcoin can't be consumed the way assets and labor can.
- sharemywin 9y agoThe transactions are the value. The network has value.
- tim333 9y agoIntrinsic value in the Buffett sense is the discounted future cashflows produced by the business. Visa Inc has cashflows.