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Old 03-23-2014, 06:02 AM  
slapass
Too lazy to set a custom title
 
Join Date: Nov 2002
Location: Earth
Posts: 14,622
Quote:
Originally Posted by mineistaken View Post
So I always said that bitcoins have no actual value other than that value which depend on how many people think that it is valuable.

Analogy would be here:

http://www.nytimes.com/2013/05/15/ar...bys.html?_r=1&

You have a painting which real value is in the hundreds or maybe $1000 tops. However if you have people who somehow think it is worth more you can sell $1000 value thing for 46 millions.

And yes I know that "something is valuable as much as somebody is going to pay for it". Point is that some people simply overvalue things. 0 value bitcoin or $1000 value painting are just examples of this.
The value in bitcoins is in the encryption. The ability to quickly and safely shift them across the world. Diamonds and gold have a similar value. Add in scarcity and those who want that ability are willing to pay extra to do it.
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