Quote from: Funeral Wreaths on October 29, 2017, 09:59:31 AM

Quote from: Razick on October 04, 2017, 11:37:36 PM

Quote from: smokeydog on September 24, 2017, 01:37:07 PM

Adams Smith wrote that the price of all things are equivalent to the human labor involved in their exploitation. The price of gold is determined by the cost in human labor to mine it. It can then be exchanged for another commodity which takes an equal amount of labor to create it.

Over time I have been able to find ways to place a price on stocks which I can use to evaluate what their value is to me. I can then buy and sell based on what I determine as value at any time.

Im not a currency speculator but I also believe the US dollar is being killed. I dont like having much of a cash position but would rather be fully invested. At this time what I see is a highly inflated value of the S&P 500. Any bonds other the very short term bonds come with too much risk tied to the Feds low interest rate policy and the increasing money supply along with quantitative easing which is placing too much fake money on the Feds balance sheet.

After many years I have developed a feel or intuition to tell me when prices are out of line. When it comes to bitcoin I am at a loss. I like the core concept of bitcoin and long term it seem like it will all work out but its value is another issue. I just dont have a feel for what its worth in exchange for food, a house, a car, gold equivalent. It seem that it should be relatively close in value to the cost incurred by the bitcoin miners. How do I find out what the current cost is to mine bitcoins. It cost to mine a well know number kind of like the PE for a stork or index?

I have started to buy small amounts which I plan to hold but I really dont like the volatility. It is also difficult to invest in something when I dont really have any history to give me a clue of somethings value. I doubt I would hold if bitcoin went over 5000. It seems to be moving a bit too fast.

Right off the bat I can tell you you are partially wrong, at least. The only thing used to value stuff is NOT the amount of work put into producing something. It is the QUALITY in doing so. And there are tons of other factors at play also. For example, why is gold 100x the price of silver? They both take a similar amount of time and effort to mine, yet one is vastly more valuable than the other. It is because of rarity. Silver is available in much greater quantities, and thus is not as valuable as its far rarer counterpart in gold.

as much as i agree with what you were saying. so it is just that we are saying, it is all because of supply and demand, so just like your example why is that gold is more valuable than silver? Of course the supply also matters, just like what you are pointing out, there is almost enough quanitity to supply the needs of people or even more, rather than in gold, or as we speak bitcoin that has only limited supply and almost everybody would strive to get one, so as expected that too many will bid until the price was higher.

Well that would be depends on the person on how are he going to use the coin that he has that agreed in the value form. Bitcoin is a form of sideline job although it is very useful in different way but their is also responsibilities that leading to success in the future.