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50 sats \ 1 reply \ @mf 7 Jun 2022 \ on: The objective, energetic economic value of BTC bitcoin
I've been thinking about the framework as well, mainly to try to figure out how the btc pricing could be "stable" and objective.
The current pricing model really is based on how much it cost to produce the good, but that only offers the baseline, not the selling price. The selling price will be found with price discovery of course, but if we can imagine that the "fair" maximum value would be based on how much energy you could get from the product/service, that would definitely help to frame the price range.
This framework can be used for products that give you energy, like an apple, or other things that help you not spend so much energy, like a more effecient hammer for example.
In the end, it's all about how much energy we use, how much we can save, and how much it costs to replenish our "batteries", since no energy equals being dead.
Yes exactly. There is a problem where people are trying to work out the value of items in bitcoin by converting the price in USD but price ≠ value.
We won’t be able to work out the price as profit margins, discounts etc., will vary even if the good/service is identical. Production cost in energy is really the only thing we can objectively calculate.
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