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https://en.macromicro.me/charts/29435/bitcoin-production-total-cost https://en.macromicro.me/charts/29435/bitcoin-production-tot... If electricity and computin

by xaduha 4y ago

https://en.macromicro.me/charts/29435/bitcoin-production-total-cost https://en.macromicro.me/charts/29435/bitcoin-production-tot... If electricity and computing power has a price, then so does bitcoin. Whether that's a waste or not is another question.

georgyo 4y ago
> If electricity and computing power has a price, then so does bitcoin. If bitcoin was worthless, electricity and computing power would still have a price. People just wouldn't use electricity and computing power to mine bitcoin. There are lots of other coins that can be mined and yet are worthless.
elysian-breeze 4y ago
what something costs to produce != worth
- taolegal 4y ago
  Yes, LTV is wrong.
strix_varius 4y ago
"price" != "worth"
- xaduha 4y ago
  If someone is willing to pay that price, then that's what it is worth to them, simple as that. That's what market is there for.
  - strix_varius 4y ago
    As hinted by "price" != "worth," price and value ("worth") have specific economic meanings. A quick search will give you the Econ 101 explanation of these terms, so you can understand the difference: - https://www.forbes.com/sites/forbesfinancecouncil/2018/01/04/the-important-differences-between-price-and-value/?sh=19875e564237 https://www.forbes.com/sites/forbesfinancecouncil/2018/01/04... - https://www.investopedia.com/ask/answers/061615/what-difference-between-economic-value-and-market-value.asp https://www.investopedia.com/ask/answers/061615/what-differe... - https://keydifferences.com/difference-between-price-cost-and-value.html https://keydifferences.com/difference-between-price-cost-and...
    - deleted 4y ago
      [deleted]
    - xaduha 4y ago
      I'm not going to argue terms with you, I'm not an economist. But I do hope that rwaksmunski also harumphs the term "net worth" when used by more respectable publications than cited cryptoslate.com, because I would argue "worth" of bitcoin is closer to money in whichever sense of the word than "net worth" is when usually mentioned.

by xaduha 4y ago

georgyo 4y ago

> If electricity and computing power has a price, then so does bitcoin. If bitcoin was worthless, electricity and computing power would still have a price. People just wouldn't use electricity and computing power to mine bitcoin. There are lots of other coins that can be mined and yet are worthless.

elysian-breeze 4y ago

what something costs to produce != worth

taolegal 4y ago
Yes, LTV is wrong.

strix_varius 4y ago

"price" != "worth"

xaduha 4y ago
If someone is willing to pay that price, then that's what it is worth to them, simple as that. That's what market is there for.
- strix_varius 4y ago
  As hinted by "price" != "worth," price and value ("worth") have specific economic meanings. A quick search will give you the Econ 101 explanation of these terms, so you can understand the difference: - https://www.forbes.com/sites/forbesfinancecouncil/2018/01/04/the-important-differences-between-price-and-value/?sh=19875e564237 https://www.forbes.com/sites/forbesfinancecouncil/2018/01/04... - https://www.investopedia.com/ask/answers/061615/what-difference-between-economic-value-and-market-value.asp https://www.investopedia.com/ask/answers/061615/what-differe... - https://keydifferences.com/difference-between-price-cost-and-value.html https://keydifferences.com/difference-between-price-cost-and...
  - deleted 4y ago
    [deleted]
  - xaduha 4y ago
    I'm not going to argue terms with you, I'm not an economist. But I do hope that rwaksmunski also harumphs the term "net worth" when used by more respectable publications than cited cryptoslate.com, because I would argue "worth" of bitcoin is closer to money in whichever sense of the word than "net worth" is when usually mentioned.