[Cryptography] BitCoin bug reported

[Patrick Chkoreff]

Phillip Hallam-Baker wrote, On 02/14/2014 11:33 AM:

> On Fri, Feb 14, 2014 at 4:15 AM, Guido Witmond <guido at witmond.nl
> <mailto:guido at witmond.nl>> wrote:
> 
>     On 02/10/14 14:03, Phillip Hallam-Baker wrote:
> 
>     A few misunderstandings...
> 
>     > Since the upper limit on the value of a bitcoin is set by
>     > the cost of electricity to mine it,
> 
>     Please don't conflate cost and value.
> 
> 
> The price of something is the amount someone will charge, the value is
> what someone is willing to pay.


Guido was distinguishing between cost and value, not price and value.

You wrote that "the upper limit on the value of a bitcoin is set by the
cost of electricity to mine it."  That's just not true.  The value of a
bitcoin can far exceed the cost of the electricity needed to mine it.

You wrote that "the value increases as the difficulty of mining
increases."  That's just not true.  The value of a bitcoin can fall as
the difficulty of mining increases.

The cost to produce something and the value of the thing produced are
two entirely separate quantities, and not necessarily correlated.


-- Patrick