Where does Bitcoin get its value?
The algorithm.
The blockchain.
>>54490301
electronic jews
scarcity created by the increase in difficulty in solving blocks in the block chain.
the energy spent in mining for the blocks themselves.
In other people wanting to give you money for it
the electronic jew
>Where does cash get their value from
Consider modern fiat money. The only reason banknotes holds any value is based on the fact that people use(and trust) them
>>54490430
bitcoin isnt fiat money
>>54490301
A greater fool.
https://en.wikipedia.org/wiki/Greater_fool_theory
>The greater fool theory states that the price of an object is determined not by its intrinsic value, but rather by irrational beliefs and expectations of market participants.
Intersubjective consensus. In layman's terms, because people decide it's worth that much.
https://en.wikipedia.org/wiki/Subjective_theory_of_value
>>54490301
>>54490437
To add to this read about "Tulip Mania".
https://en.wikipedia.org/wiki/Tulip_mania
>At the peak of tulip mania, in March 1637, some single tulip bulbs sold for more than 10 times the annual income of a skilled craftsman.
Yes but in what way is bitcoin tied to any physical worth?
>>54490430
>The only reason banknotes holds any value is based on the fact that people use(and trust) them
Because governments and their armies uphold the value of the currency
>>54490463
when you sell bitcoins to convert them into another currency like USD
the bitcoin exchanges look at the buy and sell orders set by the buyers and sellers to determine the fair market value or whatever
Can I use a quantum computer to crack bitcoin? IBM now has a cloud service anyone can use for quantum computing.
>>54490463
Guy 1 offers to pay x dollars for y amounts of bitcoin. Guy 2 offers to sell y bitcoins for x amount of dollars. They make the trade, and thus y bitcoins are now worth x dollars.
>>54490463
There is no "physical worth". It has value because it is a medium of exchange.
>>54490492
>>54490463
wait you mean the value in the bitcoin?
see
>>54490382
>>54490500
as the block size decreases and the supply of new coins being mined decreases, the value in each coin increases. what would have cost 1 bitcoin could now only cost .5
>>54490511
But bitcoin isn't a necessary commodity really.
Read about Tulip Mania or Beanie Babies, again.
It costs a lot of electricity and expensive computer parts to create bitcoins.
>>54490520
unlike those bitcoin is heavily traded today
>>54490436
He didn't say it was.
>>54490526
Yes but "if supply decreases then they'll be worth a lot!" isn't really true.
I remember retarded bitcoinfags saying "Bitcoin will be $10,000/each in 2015(or whatever it was idk 2014 w.e) at this rate of mining because the supply will be nearly drained!!!"
>>54490532
no he just decided to go off on a tangent for no reason.
>>54490301
There will only be so many made.
They are easily transferable.
>>54490542
It's called 'drawing a comparison'
It's as common as dirt.
>>54490541
well i dont know the ins and outs of bitcoins. but from what i do know they have suffered a few hits with this bitcoin client issue and the mt gox hack etc. it has stained the peoples confidence in bitcoin
>>54490549
so he was comparing bitcoin to fiat currency and implied that they are similar then?
>>54490557
>but from what i do know they have suffered a few hits with this bitcoin client issue and the mt gox hack etc. it has stained the peoples confidence in bitcoin
Of course it has. Bitcoin is an inherently flawed "currency" prone to pump and dumps, scams and all sorts of bullshit.
In fact, it LITERALLY cannot be accepted on a mass-scale because the time to process transactions would take days and weeks at some point.
As the blockchain it gets longer and longer to update it, if it gets used any more frequently it will soon be impossible for people with slower internet connections to update the blockchain as quick as it gets updated.
Bitcoin transactions used to take seconds/minutes. Now they can take hours
>>54490565
With specific regard to the comparison he made, yes.
>>54490301
Limited supply and people agreeing to exchange goods for them. Same as gold.
>>54490570
i am not bitcoin cheerleader m8 but you can use that meme wallet which doesnt need the whole blockchain
and yeah since almost all the miners are in china with their traffic slowed to a crawl due to GFW transaction times are shithouse
>>54490588
Bitcoin is just shit.
it is and always will remain a meme currency used for Ransomware and selling/buying drugs on the internet.
That's all it's good for.
>>54490599
kay
>>54490382
but mostly its value as a trade medium where anyone with internet access can send it to anyone anywhere instantly, plus a couple viable laundering schemes. most people vastly underestimated this aspect and thought the $100 market price way back when was a massive bubble. but silk road getting v&, mtgox collapsing under its own incompetence, and so on failed to bury the market.
Why are Bitcoins worth 400 $ each? How did that happen?
I get's its value from drug money
Like tokens at an arcade
>>54490599
I bought sex toys on toydemon with bitcoin.
I also buy drugs.
I agree that the transaction times are ridiculously long now, and the blockchain is 50+GB on my hard drive.
>>54490549
If it ain't about food, it ain't right.
>>54490301
Where do Dollars get their value?
>>54490719
petrodollar
>>54490722
that's a different currency
>>54490725
kek
>>54490722
What gives petrodollar its value?
>>54490733
Petros.
>>54490733
people have to have that country's currency to buy oil hence increasing the value of the currency
>>54490733
Petroleum.
Demand?
>>54490745
Wrong answer.
12 years in the cube, Citizen.
>>54490735
>>54490742
>>54490743
But we have solar now.
>>54490749
>Solar "power"
kek, can you also lubricate the machinery with the suns power?
Didn't think so.
>>54490749
Yeah, but Big Petrodollar© rigged the solar-industrial complex.
>>54490749
solar is a meme atleast for now
until efficiency increases and they figure out how to keep the panels dust free it will stay a meme
>>54490749
Call me when the majority of cars are solar powered.
>>54490758
You'd be crazy not to invest now.
When the *majorit* of cars will be solar powered, it will obviously be too late.
T R U S T
R
U
S
T
>>54490792
in what solar energy providers or solar energy technology companies?
>>54490792
The majority of cars will never be solar powered, because the majority of the world does not live in California/Nevada/Arizona/New Mexico/Texas/Mexico/Sahara/Southern Africa/Australia.
>>54490301
the memes
>>54490301
You might have more luck asking >>>/biz/
that's where crypocurrency discussions have moved
>>54490301
>where does any money get its value?
its a promise of debt. but its different from other currency in that its monetary value (compared to other, real world currencies) has SKYROCKETED (among other useful things, like how you can use it for tax evasion and stuff)
try and think of it like shares in a company, they make a very limited amount of bitcoins, and people can buy them off the manufacturer/each other. when people want it more, they're willing to pay more for it and its price goes up, supply and demand.
>>54490301
>mfw remember posting on /g/ when bitcoin was $2
>mfw I thought it would flop
Gives me stomach pain just thinking about it
>>54490301
It's just a bubble.
>>54490301
Where does an IOU get its value?
>>54490430
Governments try to ensure that money keeps its value.
If people don't buy your bitcoins they have no value.
Bitcoins literally have NO value until the moment they are sold and a government currency is far less likely to instantly lose worth.
>>54490897
I had a couple bitcoins mined back in the day and decided they were probably worthless in the long run, and just let them be deleted in a system format.
Heh
>>54490978
Trust (in the promise that the IOU will be honored sometime)
http://www.theguardian.com/commentisfree/2014/mar/18/truth-money-iou-bank-of-england-austerity
>>54491102
Exactly.
>>54491154
I have more trust that the sun will rise tomorrow, that that my government won't fuck me over.
Solar is the future.
>>54490301
Where does gold get its value? Everything is worth what people are willing to pay for it.
>>54491171
At least there's limited supply.
You can't just print some more because fuck you.
from memes
>>54491008
volatility of the currency is not a part of this argument.
fuck off back to /b/
Because it can be used to buy some goods, and can be sold for a legal tender like the US Dollar.
And ultimately because there are a ton of rich assholes who just use it to stash cash and avoid taxes.
>>54490754
Because oil-based machinery requires no manteinance, right?
>>54491180
wut
>>54491277
dust doesnt affect the efficiency of oil based machinery.
>>54491283
>literally missing the point.
You're gonna vote for Trump, aren't you?
>>54491306
And who are you voting for?
>>54491164
It's a pretty safe bet that your money will retain something near its current worth tomorrow, because your politicians lose out big time as well if they fuck it up.
Unless you live in Zimbabwe.
>>54491306
i cant handle your shenanigans
>>54491279
Gold is rare and it has many uses besides being pretty.
So its value is pretty easy to understand.
>>54491279
It's pretty easy, really
>government can't into economy
>government spends more than earns
>government gets into debt
>government tells its central bank to print more money to cover debt
>government spends said money at *present* value
>once there is more money it gets devauled (because more availablity)
>repeat ad infinitum until inflation fucks everyone over
A finite resource calls for responsible management. Governments looooove fiat money, because they can just print more, because fuck you.
>>54490301
Ask yourself this question: Where does Gold get its value?
>average American invests in solar panels
>they finally pay back their cost after 17.6 years, including government and power supplier incentives
>degraded to unusability within 4.8 months
Solar power is a meme and will stay a meme until they are either cheaper to produce or made to last longer without drastically increasing the cost to produce them.
>>54490337
/pol Hive mind
>>54490436
yes it is
>>54490487
You could, but you would be wasting your time. The computer you are using right now is far faster than their quantum computer.
