undefined | Better HN

0 pointstptacek14y ago0 comments

So, marketing? Ok! I'll just run a 2-for-1 sale on Flitcoin.

Less snarkily: why are people using Bitcoin? What's the intrinsic value they see in Bitcoin? Based on what evidence can they predict that Bitcoins purchased today will be convertible to gold, dollars, or even toenails at any valuation? You've begged the question.

0 comments

browep14y ago

Here's a nice concrete example. You start a content/news blog/site. Instead of selling adspace you charge for your content by the pageview. Now how much are people willing to spend per pageview ? Probably not very much. Let's say < 1 cent. You start looking around for ways to charge people < 1 cent. Turns out it's ridiculous idea, no credit/online banking proposition is interested in < 1 cent transactions, it just doenst exist because of transactions costs. Hola Bitcoin. I can send you < 1 cent for every pageview I consume with 0 transaction costs.

The tools to do this are currently in the pipeline or are really not that hard to devise. This is what bitcoin offers that others don't. Forget anonymity or libertarian arguments, 0 transaction costs are extremely disruptive.

tptacekOP14y ago

This is an application of Bitcoin. It says, "well, people want something that promises what Bitcoin promises; therefore, Bitcoin must be intrinsically valuable". But it's obvious why that isn't true. Flitcoin promises precisely the same things.

browep14y ago

i'm not really worried about the intrinsic value of bitcoin, it goes up, it goes down, it doesn't matter. You don't have to store your wealth in bitcoin, USD goes in USD goes out when you want it to at usually 0.5% transaction cost ( or less some places ). And there's no reason Flitcoin can't succeed in the same places. I'm not sure why that would have anything to do with intrinsic value or why intrinsic value is of paramount importance.

1 more reply

icebraining14y ago

>You've begged the question.

No, you just asked a different question.

>What's the intrinsic value they see in Bitcoin?

Well, free transfers, for one, and not being subject to having your money frozen by online payment companies (e.g. Paypal).

tptacekOP14y ago

"Free transfers" isn't an intrinsic value of Bitcoin. It's a benefit you get by supposing that Bitcoin has some intrinsic value.

What's the intrinsic value? Why is Bitcoin unlikely to be worth $0 in 10 years? Because it is spectacularly unlikely that gold will be worth $0 in 10 years, and similarly unlikely that a dollar will be. Virtually any trader in the world would take the other side of that bet.

icebraining14y ago

Let me preface this by saying that I'm very ignorant about this subject.

>What's the intrinsic value? Why is Bitcoin unlikely to be worth $0 in 10 years?

Why does a currency require a value as anything other than a currency to be expect to have value?

Bitcoin offers a useful service. There's is no reason to believe this service will stop being useful in 10 years. Therefore, it's reasonable to expect a demand for Bitcoin in 10 years, making it worth more than $0.

>Because it is spectacularly unlikely that gold will be worth $0 in 10 years

Isn't most of gold's value based on its demand as a currency? If people stopped buying gold just to trade and store value, wouldn't current gold owners lose immensely?

j / k navigate · click thread line to collapse

0 comments

browep14y ago

tptacekOP14y ago

browep14y ago

1 more reply

icebraining14y ago

>You've begged the question.

No, you just asked a different question.

>What's the intrinsic value they see in Bitcoin?

Well, free transfers, for one, and not being subject to having your money frozen by online payment companies (e.g. Paypal).

tptacekOP14y ago

"Free transfers" isn't an intrinsic value of Bitcoin. It's a benefit you get by supposing that Bitcoin has some intrinsic value.

icebraining14y ago

Let me preface this by saying that I'm very ignorant about this subject.

>What's the intrinsic value? Why is Bitcoin unlikely to be worth $0 in 10 years?

Why does a currency require a value as anything other than a currency to be expect to have value?

>Because it is spectacularly unlikely that gold will be worth $0 in 10 years

Isn't most of gold's value based on its demand as a currency? If people stopped buying gold just to trade and store value, wouldn't current gold owners lose immensely?

j / k navigate · click thread line to collapse