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"they have no basic underlying value" is not true. Bitcoin themselves are value - intrinsic value. The time it took to mine the Bitcoin is what gives it the val
by PuDDin_Face 12y ago
"they have no basic underlying value" is not true. Bitcoin themselves are value - intrinsic value. The time it took to mine the Bitcoin is what gives it the value. I think this is a much better measure than we have of actual currency where no one, even the reserve really understands where the value of a dollar is.
- icebraining 12y agoLTV¹ applied to Bitcoin? I had never seen that :D I disagree with your reasoning for the same reason I disagree with LTV. That time is just sunk cost - there's no value to it, and certainly no market value. ¹ http://en.wikipedia.org/wiki/Labor_theory_of_value http://en.wikipedia.org/wiki/Labor_theory_of_value
- orbifold 12y agoI was under the impression LTV applies to human labor, so applied to bitcoin it would imply that they should have close to no value, whereas fiat currencies derive value from the efforts of the tax payers.
- lectrick 12y agoLTV as applied to Bitcoin uses the many many kilowatts of electricity used to verify transactions as the "labor".
- pjc50 12y agoThe time it took to mine the Bitcoin is what gives it the value That's a cost, not a value, and it's a purely wasteful activity.
- sz4kerto 12y agoIf I dig a large hole today in my garden and fill up tomorrow, then does this work have value just because of the time I invested in it? Not at all. (By the way, us tech people are in a lucky situation exactly because you are not right: we don't work very hard compared to many factory workers in the world but still get very high salaries.)