Reply to post: Re: I'm forever blowing bitcoin

Korean cryptocoin exchange $30m lighter after hacking attack

handleoclast Silver badge

Re: I'm forever blowing bitcoin

People buy bounty bars in order to eat them.

Or to sell them. If I ran a sweetshop I wouldn't refuse to stock them on the basis they make me gag.

The intrinsic value in the fact that you can eat them.

Nope, that's a subjective value, not an intrinsic one. There are people like me, who can't stand them. Others who love them so much they'd happily pay double the asking price. And many others in between, such as some who would buy them if only they were a little cheaper. A diabetic might shun them, unless he/she is hypoglycaemic.

All trade depends upon people having different subjective values for things. It doesn't work, otherwise.

Maybe you personally don't like them, that's fine, but there are enough people that do to make it worthwhile for Tesco to trade in them.

At a price which is not an intrinsic value but one chosen to maximize profits. Too high and the infrequent sales mean they're wasting shelf space; too low and they're selling them at a loss.

As I said, things have intrinsic costs, in terms of the labour needed to produce them, but no intrinsic value whatsoever. Value is subjective so cannot be inherent in an object. There may be a delusion, shared amongst a large number of people, that something has a specific value, but that is merely a delusion. At best the Tesco price is close to an average perceived value.

How often do you buy something you otherwise wouldn't because it's on special offer? How much would you pay for a bottle of water? How about if your water supply is out of action and the water company has just alerted you it will take at least 4 hours to fix it? Surely it's the same item in both cases, with the same intrinsic costs to produce it, but in one case you value it a lot more.

What value does a potato have? Well, if you were trapped on Mars it might be life or death.

Intrinsic value does not and cannot exist because value is purely subjective.

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