Lexicus
Deity
Something something, Karl Marx, exchange value and use value, something something
Cryptocurrencies have no use value whatsoever
Cryptocurrencies have no use value whatsoever
*sigh*Like I said, it's best compared to a drawing. Both bitcoins and drawings can have owners. They're both potentially pretty. They can be transferred. Bitcoin contains a history of its transactions.
As more contracts are written in bitcoin, the more its intrinsic value will be. The fewer contracts? Well, it becomes more like the drawings on your fridge.
*sigh*
It isn't possible for Bitcoin to have intrinsic value.
I think you're over thinking it, food has intrinsic value because you can eat it. Yes you can run into problems with spoilage, but that doesn't mean that food doesn't have value (once it spoils it does become worthless)But lots of stuff works like that? Food actually works very much like that, it has its own supply/demand/price curves. It roughly follows a normalish supply/demand curve when there is adequate supply. However, when there isn't enough, it's worth everything. When there is so much that you can't eat it all before it spoils, it's worth nothing. Less than nothing, in fact, because you have to figure out what to do with too much of it after it spoils. If you can't figure out a way to usefully compost it, it becomes a detriment.
If something can have value because it enables a useful action, does not commerce have to be an action? It's why coins are. It's why currency is. It's why cash is valuable in ways that digital currency cannot duplicate. Otherwise, my dog is intrinsically worth ~30 lbs of protein.
I am sure we are talking past each other somehow. From my economic intrinsic value link, for example paypal has intrinsic value. However it does not produce anything that "you'd have at the end of your purchase", nothing that "you could see yourself never selling or trading", no "final-link in the purchase chain". However it has value because it facilitates commerce.I think you're over thinking it, food has intrinsic value because you can eat it. Yes you can run into problems with spoilage, but that doesn't mean that food doesn't have value (once it spoils it does become worthless)
Think of it this way: is it something you'd have at the end of your purchase? Is it something you could see yourself never selling or trading? And I'm not talking about could-you-possibly-be-a-wholesaler or something, I mean is there theoretically a final-link in the purchase chain kind of thing for it?
Currency can never be your "end purchase," because the entire point of getting currency (of any type) is to later trade it for something else. Currency has trade value, but it doesn't have any value for itself as an end product.
@El_Machinae I think you're still having difficulty with this concept ... a deadbolt does have intrinsic value, because like you said it physically protects your property, it does something itself. It doesn't matter if you personally need a lock at this time, you're still confusing market value (your need to own one decides how much you'll pay, if you don't need one at all then its market value is completely worthless to you) But a lock is still something that can be used for something other than trade, which is what intrinsic means. A contract is nothing more than a promissory note, again you're only using your currency there as a trade value.
I think the big thing here is you're confusing terms, you seem to be describing market/trade value, which is different than intrinsic value (which is something having value for its own sake outside of trade) Using something as collateral isn't intrinsic value, that's market value.
Hmmmn, it's protecting collateral, like a deadbolt does. Or, more like how taping your name to the tupperware in the company fridge protects your property. But if you're distinguishing 'social utility' from 'intrinsic value', I'll grant you. A deadbolt will protect property regardless of the underlying laws, though a bitcoin cannot.Using something as collateral isn't intrinsic value, that's market value.
PayPal does have value, it generates revenue. You can "buy" PayPal by purchasing shares in that company. You'd never have to sell your shares and simply collect your share of profit, because as a company PayPal has value and earnings.I am sure we are talking past each other somehow. From my economic intrinsic value link, for example paypal has intrinsic value. However it does not produce anything that "you'd have at the end of your purchase", nothing that "you could see yourself never selling or trading", no "final-link in the purchase chain". However it has value because it facilitates commerce.
I would agree that paypal does not have any value in a philosophical point of view, it may well be pointless in a post-scarcity economy for example. But in the world we live it paypal shares have intrinsic value.
You're still confused about market value versus intrinsic value. I don't think you're really reading what I'm saying? Your caveman analogy is nonsensical to what I said previously: I said you don't personally have to need a deadbolt lock to mean it has value. You're explaining market value: something can have intrinsic value but no market value, or vice versa.Hmmmn, it's protecting collateral, like a deadbolt does. Or, more like how taping your name to the tupperware in the company fridge protects your property. But if you're distinguishing 'social utility' from 'intrinsic value', I'll grant you. A deadbolt will protect property regardless of the underlying laws, though a bitcoin cannot.
I'm not sure you doing much other than using the caveman test: A naked caveman couldn't use a bitcoin for anything, though he'd be able to use a deadbolt as a hammer or something. But once you're in a society, things have value based on how society uses them. Once you have a contract in bitcoin, they become the easiest way to protect your property. Sure, the value depends on the existence of contracts, but the value of hugs also depends on the existence of other people.
You mentioned how the intrinsic value of food depended on a combination of your need to eat and its spoilage. The value of bitcoins grows as contracts are written and decreases as they shrink. That's the more 'real' value of bitcoin, separate from what it's actually trading at today.
I don't think we're arguing about anything. I am just pointing out what the underlying source of value for Bitcoin would be outside of simple demand.
You're still confused about market value versus intrinsic value.
Umm, intrinsic value does exist in reality. Commodities for example have intrinsic value, you don't know what you're talking about. Again, you're talking about market/trade value.
To me your dog is not worth anything, but IWhen trying to figure out what my dog is worth, I've always kind of wondered how many calories I'd get from eating him.
Evaluating the value of a company is usually related to some kind of market value connected to buying or selling it. An asset purchase simply looks at the value of company assets; a stock purchase (if public) looks at earnings and other things; a stock purchase (private) will often focus on cash flow. A valuation is tightly tied to the context at hand.Surely the point is that when evaluating the value of a company, you consider how much profit it can make by continuing to function, rather than the value of the physical things it owns. In the same way you could evaluate bitcoins value you consider how much commerce it allows, rather than just the value of the bits it is composed of.