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> Economic theory says that (assuming a competitive market) the selling price of the object should converge upon the incremental cost to produce the object. Th
by RealityVoid 5y ago
> Economic theory says that (assuming a competitive market) the selling price of the object should converge upon the incremental cost to produce the object.
This does not need to apply always. Does money have the value equal to production cost?
- kolinko 5y agoDitto land and art.
- onlyrealcuzzo 5y agoYou can't produce more land, so there is no marginal cost - and art is literally not competitive - what makes art "art" is that it's unique.
- otterley 5y ago... or, more commonly, that art is protected by copyright.
- deleted 5y ago[deleted]
- otterley 5y agoVery few things apply always. Obviously money doesn't, but money is not your garden-variety competitive market like carrots or coal. The only legal suppliers of money are the nation-states that issue it. If you tried to print "money" yourself, it'd most likely be worthless because either nobody would use it (ok, maybe some cryptocurrencies excepted, but for reasons that have more to do with anonymity and a desire to stash illicit savings with a potentially lower probability of forfeiture than anything else), or you'd get in trouble for counterfeiting.
- RealityVoid 5y agoMy point is that this is not a hard rule, and using it to prove something about PoW is on shaky ground.