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How Is Bitcoin’s Intrinsic Value Beyond the Fiat Price Tag?
118 sats \ 14 comments \ @Coinsreporter 14 Mar bitcoin_beginners
If something is immune to debasement, resistant to censorship, easy to transport, and impossible to seize, how do you put a price on that? The answer is you can’t—because Bitcoin’s true value transcends price.
The world need not go Ga Ga Gi Gawk when there's a any movement in the irrelevant price tags put on Bitcoin.
The fiat price tags are a myth. They are unnatural, they don't show the intrinsic value of anything. There's simple math to it but governments don't want us to realise it.
Scarcity is what gives the intrinsic value to anything. Just think how valuable water could be where it's scarce. However the world doesn't have anything more than water. And suppose if we're limited to a 10k gallons of water, what could be the value? Can we even imagine?
So, what I've got that scarcity is Bitcoin's true intrinsic value and its beyond the fiat price tag.
Pease correct me if I'm wrong.
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20 sats \ 1 reply \ @SimpleStacker 14 Mar
Just a minor quibble: the fiat price does represent something meaningful--it represents the amount of goods and services that a bitcoin can buy today.
You're right that it may not have any meaningful signal about what it might be worth in the future... but it does measure something in the present.
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0 sats \ 0 replies \ @Coinsreporter OP 14 Mar
it does measure something in the present.
It measures incorrectly. For a simple reasoning why should it cost so much more to live in USA than in India? And it's not that US has some sort of scarcity for things or the demand is so much higher.
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20 sats \ 11 replies \ @Undisciplined 14 Mar
Lot's of stuff is scarce that no one cares about.
Value comes from people wanting it for some reason (doesn't matter what). Prices come from value plus scarcity (think purchasing power for BTC, not fiat exchange rates).
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42 sats \ 10 replies \ @Coinsreporter OP 14 Mar
Lot's of stuff is scarce that no one cares about.
I can't think of one.
My point is that the price tags given on products or anything are not decisive of their value. Value ≠ price.
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0 sats \ 9 replies \ @Undisciplined 14 Mar
My daughter's artwork has a market price of zero, despite there only being a dozen or so units in the whole universe.
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0 sats \ 8 replies \ @Coinsreporter OP 14 Mar
dozen or so units
Really?
I'm talking about products we all need to consume which are essential. Also there are innumerable artworks in the world.
Nonetheless I appreciate you found one but you know that's not a product category I'm talking about.
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20 sats \ 7 replies \ @Undisciplined 14 Mar
You are not talking about things that are essential, because humanity survived for its entire history without bitcoin.
You're talking about things people want.
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39 sats \ 6 replies \ @Coinsreporter OP 14 Mar
Yes the things that people should want and value more. The price tags in fiat aren't the reflection of their true value because these tags are often influenced by many external factors including governments.
And I agree to surrender I can't win over an economist, I accept.
But I now completely believe that Bitcoin's fiat price tags are a myth.
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