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by niklas_a
5471 days ago
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Value is ultimately determined by what people are willing to trade for - by supply and demand. Obviously, Bitcoin is not worhtless to thousands of people. They are being traded at $14 at Mt Gox right now. Why is gold valued at $50/gram today and was valued at $30 in 2007? Is it because we are creating more jewellery and need more for industrial applications and the supply cannot match the demand? It´s not - the value is increasing because people see gold as safe way to store money. To quote Wikipedia: "the price of gold is mainly affected by changes in sentiment"
http://en.wikipedia.org/wiki/Gold_as_an_investment You might also want to read:
http://en.wikipedia.org/wiki/Subjective_theory_of_value |
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