Quote from: RainbowKun on August 07, 2021, 08:21:28 AM

Luxury clothes usually costs tens of thousands of dollars, while ordinary brand is worth only few hundred dollars. What is supporting the value of luxury?

In addition, the diamond, which is not practical but turns out to be expensive relying on some beautiful stories, rendering it romantic and a symbol of pure love. Where does the value of diamond come from?

And gold. Why can it work as currency in the history of human civilization for thousands of years and then lose that function in the past five decades? Where does the value of gold come from?

Now, back to Bitcoin. Why is Bitcoin fairly valuable? What is the source of its value?What is the nature of value?

As far as I'm concerned, the value of many things is factually given by human consensus during the evolution of civilization. The essence of value is consensus and the process of gaining value is the process of reaching consensus.

There could be fundamental market forces governing the price valuation of assets you mentioned.

Luxury clothes (and items) could be limited edition, deflationary collectibles, priced high off brand name recognition.

Diamonds are valued from scarcity and real world application used in diamond drills and other items.

Gold likewise scarcity and real world application in electronics and other markets.

Bitcoin's value could derive from it being one of few easily accessible inflation protected assets. In addition to its deflationary design and other aspects of implementation. Money is a problem solving mechanism relating to token of exchange. Arguably Satoshi Nakamoto designed and built a "better mousetrap" with bitcoin, in contrast to previous electronic payment networks, savings assets and other relevant aspects of money.