Dear @lishu and @everyone else
Indeed I've noticed that most people seem to focus on monitoring market cap which I found very surprising. It doesnt take a rocket sience to realize that market cap means very little.
It's surely great way to encourage people to invest in project. Doesn't it sound great when we hear "this project is worth 2mln usd"? It surely does.
There are a lot of similarities between the internet and the crypto space today, the main one being that their true value lies in the technology itself, not the market value which was mostly designated through speculation.
You nailed it buddy.
VALUE AND TRUST
They you explained what "value" means and how we should consider it is brilliant. I found it interesting how different people see this particular topic. I realized that most people who work 9am-5pm jobs and are being paid fixed rate (money) have serious difficulties understanding this topic.
I would like to ask everyone reading my comment, how would you explain what "value" is to "regular Joe". To your mother, brother or simply a friend, who doesn't know much about blockchain and is stuck with a regular way of thinking (money = the only store of value they know).
How to explain what store of value is and that value can be exchanged / traded. I realized that I've some serious difficulty explaining it.
Cheers
Piotr
I can agree with the stance @hobo.media takes about some 'intrinsic value' to be derived from the survival utility of a substance or condition.
I might go a step further to say that other things can have a sort of 'extrinsic value' insomuch that they can be exchanged for things of intrinsic value. While I cannot eat a Bitcoin, I could exchange it for a lot of pizzas and so realize it's value in this sense.
I could also put it another way. Value is a measure of how much one wants something. Things of intrinsic value necessarily generate a basic level of want. Biology demands water for it's processes and so we want to drink. This want-value I think is a bit more general and can be applied to things like speculative assets and luxury items as well as utility items like computers or necessities like nutrition.
Hi Piotr, you are totally right. I just wrote something similar in my native language to the Czech community, that the value we have in Steemit and Bitcoin is great. We are a very lucky generation in my eyes!
Indeed we are @ritxi :) thx for your comment
I don't think price volatility really effects bitcoin's use as a store of value. Store value is definitely a long term perspective. It certainly affects bitcoin's use, added as a medium of exchange. But as a store of value... you know if you are buying and investing in Bitcoin and using it as a store value then you have a long term perspective. Certainly more than a year. Volatility really is an expression of size.
I think there's a broad misunderstanding about how volatility is dealt with in capital markets and currency markets. The idea that regulators control volatility in a currency I think is an illusion.
Regulation doesn't control volatility. If anything, regulated markets that don't have enough flexibility and liquidity are more volatile. I would say the biggest contributor to volatility is the small size of a currency.
And you've got to understand that bitcoin is currently traded on a global basis unlike most other national currencies that have primarily domestic markets. And it's market cap is smaller than some national currencies. But bitcoin will become less volatile as it grows.
Bitcoin is what internet was in 1993. People were not so familiar with it, only minority was using it. And through the years, it became a part of our everyday life.
Value of bitcoin is enormous. It is already changing the way we trade , how fast and how secure we can do things online, how we do not need any third party while two or more people are making an exchange, full decentralisation.
I could write whole day about this. About all the technology that is behind bitcoin, when it all started....but I guess that's a bit too much for usual Joe ;)
I think one needs to make distinction between price and value. Price is the short term fluctuations of a crypto currency, while value refers to the long term benefits and positive impact of a cryptpcurrency on the lives of users and investors.
Dear Piotr, till this blockchain is connected with just cryptos it will be not understand by "regular Joe".
Only who have some knowelage about crypto can understand, for others this is a hidden world where only liers and bad people play, unfortunately in most of country people think that Bitcoin is the black money....
Thanks @crypto.poitr
For me value and trust are very separate entity. Let suppose, value of my high end watch is $1500 but I am trusting my $100 mobile more when I have to check/report the time.
It is difficult to sustain the value without trust but if their is trust then value can be generated.
Most of the people who entered this field did not enter it because of the development of knowledge or the exchange of ideas (I was also at the beginning) but the goal was to make money and develop daily income. The physical obstacles experienced by the world's population push them to search for other means of profit and the field of the Internet is a wide area and may be possible if the person choose the profitable field.
Greetings
Love your comment @nabil.nassiri
Thx for dropping by buddy
Piotr
I think that human perceives things as being valuable if they save money, time, energy; or if they create self-esteem, relaxation or happiness. These are all things of great value to us and I would try to explain this by asking people what they value the most.
Hello crypto.piotr, here again.
The subject of Value is complicated and I usually explain it by making a monetary comparison, above all because many people associate value with money alone.
Value really is what you are willing to give for something in particular. The value of a particular thing can be different for each person. There are those who value their mother more than their children and there are those who value their children more than their mother (my particular case), so Value is what we are willing to give to have that thing we want. Another example would be an auction, suppose that Elvis Presley's guitar is being auctioned, the auction starts with a value of 30,000 USD, then some offers 35,000 USD, another person offers 40,000 USD and a third person finishes offering 60,000 USD. What's happening? That the 3rd person valued Elvis Presley's guitar more than the other two people did. For this person the symbolic and sentimental value was greater than the one that the other two person gave to the guitar. Maybe this person is a collector who values these things very much and will allow you to have very good conversations about this guitar (surely this person gives a lot of value to personal relationships) and for that reason he was willing to pay the price, he considered that the $ 60,000 worth it. I could have a lot of millions but the value that I would give to that guitar would not exceed 3,000 USD.
Love your comment @luiscalzadilla
Thx for dropping by buddy
Piotr
Dear @crypto.piotr
I believe that value depends on a lot of things like:
Perception
What does a person consider as valuable. For me, I consider bitcoin, steem and other cryptocurrency as valuable in addition to fiat currencies, precious metals and other tradeable stocks.
Situation
Assigning value to an object depends sometimes in a person's condition or situation. If a person is in a desert, he will surely value water over gold, silver or any other things- as its more essential to his survival.
Knowledge/Education
Well, for most of the people and, I am living now in Australia, they still do not know the difference between bitcoin and ethereum here. So basically, one's knowledge of what is valuable depends also on his education and accessed information.
Opportunity
A lot of guys in the stock market are very much familiar with this and well, in lay man's term, asking simply yourself- what is more valuable now- gold, silver, fiat or cryptocurrency. Well, that depends on what the chart in the stock market are saying, right?
To sum it up, if you wanted to convince anyone on considering anything valuable, you get to profile them first so you can determine the most appropriate method to get them on your side.
Thank you for yours amazing comment @nurseanne84
Very wise summary. Appreciate. As always.
Yours
Piotr
Excellent comment @mykos
Hi @nurseanne84,
"If a person is in a desert, he will surely value water over gold, silver or any other things- as its more essential to his survival."
Simply awesome...... 100℅ truth!
Very apt comment. Perfectly written. Nothing more, nothing less.
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Market cap is not that important, I agree on that. While Bitcoin went to all time highs in January 2018, it was actually Ethereum that caused it to go to that price of 20k. This is because of the ICO bubble, it inflated the value of the entire market.
As for a store of value, well, I do subscribe to the thinking many people have that there is no such thing as intrinsic value. So, a store of value, in many respects, is merely an imagined value within the mind of the person storing it.
I do believe in intrinsic value, but the only things that truly have intrinsic value are the things that we need for actual survival. Although water is not highly valued in a city, but greatly valued in a desert, it does have a base intrinsic value. We need clean, drinkable water, regardless where we are.
Gold and cryptocurrencies are not things that can have intrinsic value, because they are not essential to our physical survival in any direct sense. However, they do have a subjective value in the same way baseball cards have a subjective value. As long as someone is likely to care about the item, it can become a store of value.
Bitcoin is actually terrible gold. Everything gold is good at Bitcoin is terrible at, but Bitcoin has one special use that gold is terrible at: teleportation.
Bitcoin can teleport from my wallet to yours in 10 minutes. It doesn't matter where you are, I can send you money you may need. This is valuable in many situations, and for this reason, there is likely going to remain someone interested in dealing with you in cryptocurrency for years to come.
Excellent comment @hobo.media
Teleportation? :) I never heard that before :)
Yours
Piotr
Dear Piotr Sir,
Be it a product or commodity, it's value depends on the impact it makes in the minds of the people and Supply & demand follow suit!
For example, here in India, our people prefer investing in Gold rather than any other thing. The value that precious medal earned in their minds is due to it's glorious past history which is without any disputes.
I was telling people that it is okay with them to invest in Gold, but told them to make it (Gold: Bitcoin-70:30) and asked them to check how Bitcoin performs superiorly with block chain technology, how secure and transparent each and every transaction will be and the like.
Regards,
Srinivasant
Posted using Partiko Android
haha, i have been reading some comments and i found each of them quite amazing. Anyway this is my little tip on the topic of value. Value comes from the users of a commodity and it's worth is determined by the people. But sometimes you would need a product to back your value you know and that is where all these blockchain solutions that are coming up are trying to develop an ecosystem which is going to drive the liquidity of their cryptocurrencies to keep the value and sustain it. Hope this helps :)
Kelvin writes @Ikkelins