Post
Topic
Board Bitcoin Discussion
Re: What is the nature of the value of Bitcoin?
by
RainbowKun
on 09/08/2021, 07:43:03 UTC

Then from that standpoint, because of that “philosophy”, any Proof of Work coin will then always have value “because energy”? Explain why Proof of Stake coins are valued.

Value is what the market makes it. If no one buys/uses the coin, it can’t have “value”. Would Bitcoin have value to a man/woman isolated in an island simply because energy was used to “mine” it?



First of all, not all Proof of Work coins are valuable. The value of a coin depends not only on its energy supply, but also on many other factors. The method of issuance, total issuance, community construction, ecological positioning, etc. of this coin ultimately depend on what problems it can solve, how many people can believe it, and how many groups have a consensus on it. On these foundations, only with real energy support can its value be better supported. This is why I say that Bitcoin's consensus is the strongest.

Secondly, why is it that Proof of Stake coins are also valuable? First of all, the value here depends on the value of the coins staked. Many coins have a fair market value, and many people buy them with real funds, and there is a cost. At the same time, they can be sold in the secondary market at any time, so they can carry a certain value by staking them.

Third, is Bitcoin valuable to a man/woman isolated in an island? Using energy to mine bitcoins gives bitcoins a fair value and a value recognized by the market. Whether it is valuable to them depends on whether they need to have economic contacts with the outside world. If they only live on isolated islands and are self-sufficient in everything, then Bitcoin is of no value to them. If they need to go out of the island to purchase supplies, then Bitcoin is valuable to them.