News for hackers. Stuff that matters.
Re:Bitcoin Halving Just Occured by ashtonkem on Monday May 11, 2020 @07:38PM (#23148712)
My original point is that market value cannot be driven entirely by cost of production. This is born out by items that are sold well above production cost, and things that cannot be sold because their high production cost is above what the market will bare. The implication being that saying “bitcoin is worth $X because we spent $X to mine it” is a nonsense statement.

What’s interesting is that you reinforced my point at the very end. Baseball cards are a fantastic example of a product that’s sold in a way that’s completely disassociated from the cost of production.

Re:Bitcoin Halving Just Occured by jkhdigital on Monday May 11, 2020 @08:33PM (#23149241)
Except that Bitcoin really is worth $X because someone spent $X to mine it. There is no fundamental valuation: Bitcoin is made up Internet money. It is worth whatever people are willing to pay for it. Mining is public evidence that people all over the world (well, kind of) are burning money to acquire Bitcoin. Maybe those people are cranks, but they do have skin in the game.
Re:Bitcoin Halving Just Occured by ashtonkem on Monday May 11, 2020 @08:55PM (#23149390)
No, people are willing to spend $x to mine bitcoin because they can sell it for $x, not the other way around. If I spend 2x as much mining bitcoin, the price doesn’t double. But if the price doubles, I can afford to spend 2x more mining it.