The Daily Paul has been archived. Please see the continuation of the Daily Paul at Popular

Thank you for a great ride, and for 8 years of support!

Comment: I got it... first video:

(See in situ)

I got it... first video:

1. The intrinsic value of bit coins is not dependent in its purchasing power. Its intrinsic value lies in its anonymity, open source cryptology, scarcity, and ease to use.

2. The pricing of them is obvious: Unlike his example of a vegetable you cannot store your wealth in vegetables or chickens: there is no uniformity in vegetables in these items, there is no uniform divisibility of them (..poor chickens lol..) And on top of that Bitcoin are as good as gold in storing your wealth for the long haul (veggies and chickens will rot over time).

Also, supply and demand- actually bitcoins works great because it has the ability to work as cash (for human spontaneous purchases): like the bitcoin ATM, Credit Card, the fact that you can buy from any online retailer.

3. OMG... he argues that the use of government force is a good indicator of a good currency... What happened to Free-Market??? He says that fiat $ is better because it has the law on its side... :/
... im sorry buddy I believe in voluntary exchange.

4. Actually the intangibility of bit coin is part of its intrinsic value.. He goes on to compare himself and his psychic abilities as an analogy of a scarce good. I think he misunderstands the difference between bartering and currency. (Again one of the reasons we have cash is for spontaneous purchases) you cannot do this under a system of barter which is what he is comparing bitcoins to. He only does this in an attempt to make put the gold standard at odds with bits.. Gold needs a note, which we call cash, in order to be able to partake in sponteneus purchases. I wish (in an ideal world) we could just walk around with gold and silver coins in our pockets but that is not the case right now and hasn't been for sometime.

5. regarding mining he has no idea what he is talking about.

"We’ve moved beyond the Mises textbook. We’re running in the open market." - Erik Voorhees