Quote from: Marxian on June 10, 2011, 03:05:25 PM

Quote from: hugolp on June 10, 2011, 02:22:29 PM

In the future, you will clearly see that the market is efficient and tends to eliminate the enterprises that opperate at a loss and forcing producers with high prices to lower them or close,

I don't doubt this. It's interesting what to operate at a loss means in the Bitcoin economy. It seems quite difficult to make a loss when there's a strong deflation. Even if you don't operate at all, you certainly make a profit. Of course, there's still the final crash, which will produce a few winners and and an army of losers.

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thus producing the long term effect that the price tends towards the cost (note the use of the word "tends").

Almost right. The price tends to or fluctuates around the value. Value is not equal to cost. Roughly, value is cost plus surplus value.

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This does not mean the price IS the cost. If you say that the price is the cost you can not explain why people buy and sell way over and way under the cost. You are basically confusing a market process with how the price is formed.

Never said such things. I acknowledge that the price is not the value. That's obvious when one takes a look at the charts. But I'm interested in what the value is. The big price fluctuations can be explained with speculation.

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PS: Btw, the Bitcoin economy is still young and the process of the price towards the cost has not fully developed so you wont probably find for a while what you are looking for.

By looking at the price nobody will find anything about value. You need to look at the composition of the mining capital.

You have defined value in a way that its not possible to argue and that its impossible to test in reality. Your "value" concept is an axiom and its also worthless to understand how the economy works.

What everybody else understands as value works as I have explained.