Post
Topic
Board Bitcoin Discussion
Merits 1 from 1 user
Re: Why would one pay $7K for Bitcoin if he/she can get the same thing for $0.001?
by
Sunsayzxc
on 06/12/2019, 10:47:25 UTC
⭐ Merited by JayJuanGee (1)
What’s the difference between Picasso’s “the Dream” and a child’s school painting? Answer the question why one costs 150mln, while other is 0. Then you’ll have a clear understanding between BTC and similar coins price difference.
You can’t compare pricing between different kinds of assets. Pricing of consumer goods asset class and store of value (SOV) asset class is absolutely different.
BTC is the best SOV in existence. Firstly, because of its inner qualities. Limited supply, impossible forgery, high liquidity, instant transfers, zero cost storage. You can argue with each of those qualities in general, but you have to compare those with other SOVs. Not with let’s say smartphones or cars, or cash (usd, eu, any other). You have to compare it with gold, arts, real estates.
Secondly, comparing BTC to other coins. Please, feel free to find and show another coin with same qualities, worths million times lower. By qualities, I mean same safety, supply, tokenomic model, premine and so on. Maybe you’ll find a few similar. But here comes supply and demand. In order to become a store of value, people should actually use it (have trust) as SOV and be able to transfer, and convert it easily. BTC is trusted and used as SOV right now. And at current mcap it fulfills all the needs of people who use it in terms of SOV. Billions are stored and transferred via BTC network. When there will be a need for tens or hundreds of billions to be stored in BTC, we will see natural mcap growth.
Why Picasso’s painting worth 100mln+? Cause people decided to use it as SOV. And never sell it lower than they’ve purchased it. That’s it. It has all qualities of SOV as well. All of them are worse than the same of BTC, except total supply. Only 1 painting and 21mln BTC.
So what do we got in the end? To become a SOV, asset should have qualities of it (inner  value) and people should decide to use it as SOV. No other coin like that for now.