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Comment: Re:Well the ultimate value of Bitcoin is (Score 1) 605

by Talderas (#43421031) Attached to: BitCoin Value Collapses, Possibly Due To DDoS

And this is ignoring the issue this article bring up, that with a newly-consructed pool of currency with much fewer users, it is much more prone to currency manipulation than dollars or euros.

That's huge to me. If DDoS attacks can be utilized to wildly manipulate the value of a currency, how can the currency have value?

Comment: Re:Well the ultimate value of Bitcoin is (Score 1) 605

by Talderas (#43420997) Attached to: BitCoin Value Collapses, Possibly Due To DDoS

You need to stop using the word 'value' in place of 'cost'. You discussing Bitcoin in an economic manner. Value and cost are two words that are defined in economics. Don't blame others for misunderstanding you because of your inability to communicate properly within the context.

Cost is what you have been describing and that references what goes into producing something. Bitcoins have an intrinsic cost which is the amount of electricity necessary to perform the computations to mine a single Bitcoin. An intrinsic cost cannot be recovered. I cannot take a Bitcoin and get back out of it the electricity or computing time that was expended to create it.

An intrinsic value of something is what it can be immediately redeemed for and this doesn't mean in the exchange of goods. In other words, the intrinsic value of a bitcoin is the amount of bits on your harddrive that can be redeemed from using it or functionally valueless. Paper currency, on the other hand, has a value of whatever you could use the paper for, be it a note to write one, insulation, or kindling for fires. Gold has an intrinsic value of things like gold plating connections in electronics.

So repeat after us. Bitcoin has no intrinsic value. It's only value is what others perceive it to be which decides how much of a good you can get in exchange for a single Bitcoin which is about as far from intrinsic value as you can get.

+ - BitCoin Currency Manipulation from DDoS Attacks-> 1

Submitted by Anonymous Coward
An anonymous reader writes "The recent DDoS attacks on BitCoin exchanges appears to be an attempt at manipulating the price of the currency. The attackers wait until the price gets to a certain point, sell their BitCoins, destabilize the exchanges with DDoS attacks, and buy up the coins from panic sellers."
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