What is Value? | Gold, Bitcoin, Fiat?

What actually is value?

It seems like a silly question at first but as we learn more about different Cryptocurrencies and alternative monetary systems it begins to open up the question for a second examination?

Let's dive in.

Value is only a perception or belief.

Value does not exist in objects, it exists in subjects (the mind). For example, gold's value is not in the gold itself. Gold's value is a perception within the human mind. If there were no humans on earth to use gold, would gold have value? No. Because there is no human mind to value it.

So why is gold valued by humans?

Gold is perceived as valuable because it's finite. There's only ever going to be a certain amount of gold on the planet, this means holding a higher relative quantity of gold than someone else can create a perception of higher value.

Coupled with a long history of being desirable and precious, it creates a universal code. Everyone agrees on this code and it creates value.

Interesting right?

So, Fiat money. Here is the definition.

'Fiat money is a currency that a government has declared to be legal tender, but it is not backed by a physical commodity. The value of fiat money is derived from the relationship between supply and demand rather than the value of the material that the money is made of'.

Wait, so does fiat actually hold value? It sounds like monopoly money to me. It has value when you play the game but loses all value when you forget the games set of rules. Is fiat Just a belief?

Fiat's value is supply and demand its processes. It's also controlled meaning corruption, counter fitting the list goes on...

To me, it sounds detached?

So Bitcoin and similar blockchain protocol currencies? Let's explore.

If you think about it, gold is heavy, non-transportable and has no uses, it's just a big lump of finite metal perceived as valuable because it's rare and shiny.

Bitcoin has no weight, it's extremely transportable and it's finite.

Bitcoin is almost like uploading gold onto a world wide integrating global network. (The internet) Gold has proven it can hold value. Surely if you could trade gold directly from peer-to-peer instantly its value would rise?

Again. Interesting?

I think people get confused about what Bitcoin is. It is not a coin any more than an email is a letter. What Bitcoin is, is a ledger that says you have a quantity of something. We refer to those units of quantity as Bitcoin, just like we call electronic letters email.

That quantity recorded​ on a decentralized​ ledger that is transparent.​The amount of Bitcoin's​ is finite​. This is literally the definition​ of value under the ​human code?

Is Bitcoin a Value 2.0 update?

Makes you think. What are your thoughts? Please comment your ideas!

Upvote and follow if you enjoy this content!

Personally, I think theses types of protocols​ are 100% the future. The current system is crumbling. It's time for change!

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