This is clearly low-quality flame-bait IMHO. Sophisticated math in the middle doesn't impress me.
The Fair Price of a Bitcoin is Zero
11–20 of 65 posts
Re: The Fair Price of a Bitcoin is Zero
#12I'm so tired of every Tom, Dick, and Harry throwing his hat in the ring to declare Bitcoin worthless. Can't we just agree that this is a new thing nobody quite understands and stop making prognostications about it's value or lack thereof? Let those of us who are interested in furthering the Bitcoin economy do so unencumbered by pundits.
These posts are entirely the result of authors who didn't buy bitcoins when they were cheap. They want it to fail, and try to find any flaws in it that they can, because if it succeeds then they'll really feel like shit because they missed out.
There is extreme bias in the news community (on both sides) because of their investment (or lack thereof)... And possibly a certain amount of attempted market manipulation as well.
In other words, almost everyone writing about bitcoins is full of shit. Take everything you read, on all sides of the issue with a grain of salt.
Re: The Fair Price of a Bitcoin is Zero
#13Wouldn't the same logic also lead to the inevitable conclusion that the (fair) value of gold is zero?
Given that people pay real money for BTC, perhaps it is time to question the theory.
Btw, I found this really amusing: apparently the Tulip Mania never actually happened, or at least nobody knows for sure and lots of things seem to indicate that it didn't happen (overpriced tulips happened, but not a mania that made the common people join the frenzy and drove everybody to bankruptcy). It's on Wikipedia (the German version seems to be more clear about it, though).
Re: The Fair Price of a Bitcoin is Zero
#14The Fair Price of an Ounce of Gold is Zero! Since there's no issuer of an ounce of gold it can't be worth anything. Q.E.D. EDIT: Some context: "First, all financial instruments are accounting creatures. They are the asset of the bearer and the liability of the issuer. Gold coins were the liability of, e.g., the King, Federal Reserve notes are liability of the Federal Reserve, and coins are the liability of the Treasu…
I found this odd as well. The US Dollar was essentially a unit of weight for much of its early history. Much of the money circulating was in fact silver Spanish dollars, issued by the Spanish empire as a result of the gigantic silver mines in central and southern America. Anyone could bring a unit of gold or silver to the treasury and be issued a silver or gold dollar. It was not a liability of the government in any way.
https://en.wikipedia.org/wiki/Eight_real_coin#United_States https://en.wikipedia.org/wiki/Coinage_Act_of_1792
Re: The Fair Price of a Bitcoin is Zero
#15If you think of the Bitcoin system itself as the issuer, the system itself promises to accept transaction fees -- ostensibly a bounty on verifying the transaction. So BTC are a liability of the Bitcoin system. QED.
Thus, instead of a debt-based economy, it will be a verification based economy.. which is a little funky, and I don't know if there are models for it yet.
/mostly-tongue-in-cheek
Re: The Fair Price of a Bitcoin is Zero
#16I'm so tired of every Tom, Dick, and Harry throwing his hat in the ring to declare Bitcoin worthless. Can't we just agree that this is a new thing nobody quite understands and stop making prognostications about it's value or lack thereof? Let those of us who are interested in furthering the Bitcoin economy do so unencumbered by pundits.
These posts are entirely the result of authors who didn't buy bitcoins when they were cheap. They want it to fail, and try to find any flaws in it that they can, because if it succeeds then they'll really feel like shit because they missed out. There is extreme bias in the news community (on both sides) because of their investment (or lack thereof)... And possibly a certain amount of attempted market manipulation as…
There's only been one rational post on Bitcoin in the last fortnight:
Re: The Fair Price of a Bitcoin is Zero
#17Re: The Fair Price of a Bitcoin is Zero
#18>The structure of the payment system, not bitcoins, is actually what makes the bitcoin project so successful.
Isn't this statement just as valid when applied to USD?
Re: The Fair Price of a Bitcoin is Zero
#19To follow the logic of this article, it could just as easily be titled "the fair price of gold is zero."
Gold billion has no value as a monetary instrument. But obviously it, like Bitcoin, has value as a unit of account because it is scarce.
Re: The Fair Price of a Bitcoin is Zero
#20The Fair Price of an Ounce of Gold is Zero! Since there's no issuer of an ounce of gold it can't be worth anything. Q.E.D. EDIT: Some context: "First, all financial instruments are accounting creatures. They are the asset of the bearer and the liability of the issuer. Gold coins were the liability of, e.g., the King, Federal Reserve notes are liability of the Federal Reserve, and coins are the liability of the Treasu…
So what can you make out of your bitcoins when you melt them down? The argument of the post is that gold-as-money is worth more than gold-as-commodity, and, if gold doesn't have an issuer, its value falls to that of the physical commodity. Because bitcoin, unlike gold, has no use except as a medium of exchange, if a bitcoin's value fell in the same way in the absence of an issuer, unlike gold, bitcoin's value would fall to zero.