Comment: Right on. Labor theory of value is misguided...

(See in situ)

In reply to comment: Everything you hold in your (see in situ)

Right on. Labor theory of value is misguided...

However, the price of new commodity goods will often be similar to the cost of production.

This isn't because the labor gave it value, but because the commodity's recognized value meant people were interested in providing the labor.

There is a strongly correlated relationship between labor and value, but the cause moves in the opposite direction. If the cost of production exceeded the value, people would ultimately stop producing the product.

In the case of Bitcoin, the price is wildly above the cost of production, and there is no real scarcity; an unstable place to be.

Author of Shades of Thomas Paine, a common sense blog with a Libertarian slant.

http://shadesofthomaspaine.blogexec.com

Also author of Stick it to the Man!

http://www.amazon.com/Stick-Man-Richard-Moyer/dp/1484036417