There's a great saying in the Bitcoin world: Everybody gets BTC at the price they deserve.

I couldn't agree more.

But that saying is a whole lot funnier (in a sad kind of way) to those of us who know that Bitcoin has zero intrinsic value, and thus obviously won't ever buy at a price higher than that. Per your aphorism, we deserve to get them for nothing, which seems fair.

Recall that the intrinsic value of any financial security is the present value of all future distributions it could pay, never a farthing more. That is of course zero for bitcoins, which is why bitcoins are not investments at all at any price, but capital goods.

In this case it seems that the market price goes up and down primarily as a function of the number of people who don't know that yet. I'm content to watch from the sidelines as they trade amongst themselves.

Jim

Berkshire Hathaway FAQ

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