Quote from: Impaler on December 08, 2013, 07:55:38 PM

Quote from: deisik on December 08, 2013, 01:34:19 PM

Impaler was absolutely wrong about security of Bitcoin adding nothing to its strength as a store of value for rather evident reasons which I have shown (it works the same way as taxes and legalization of money do), but this doesn't make your argument more valid. What you say here is a consequence of the factors that back up Bitcoin, but this is not what gives it strength or backs it up by itself. In fact, I have already explained this in one of my previous posts in this thread...

I've said that an asset needs BOTH security and backing to be a good store-of-value, and BTC has security (of a sort) but no Backing. I'm arguing that no amount of security can compensate for the lack of backing, the relationship is Multiplicative not Additive, a Million x Zero = Zero, you seem to be arguing that if something is just Secure enough that Backing is unnecessary. If we reverse the relationship and hypothesize an asset that's backing is perfect but is impossible to secure from theft, no one would call that asset a good store-of-value.

Ok, let's start again. A currency in the gold standard is backed up by gold, right? Gold has some value, but this value is subjective in nature as well as for all other goods. This means that it is not determined by some property of gold (or amount of labor required to produce it, for that matter), but is determined by the importance an individual places on it for the achievement of his aims. Without this subjective valuation shared by the majority of people gold would be worth next to nothing. Now, if you agree that security of Bitcoin has value in the eyes of the individual as it does, you inevitably come with logical necessity to the conclusion that security IS backing up Bitcoin. Actually, anything inherent to a store of value that has subjective value will be backing it up, and the more people share this attitude, the more strength the store of value gets

It's a pity really that you went on a path of obfuscating and confusing matters here...