How does anyone who subscribes the Labor Theory of Value get behind bitcoin and cryptocurrency?
@Matt_Noyes If all value arises from the application of labor, then BTC has no value. Investments are generally made into securities with some underlying production. If anything, BTC destroys value because of the energy resources required to create and transact it.
@beckett Oh I see. Thanks. But BTC can be exchanged for fiat money and/or commodities, right? The fact that its price can be driven up and suddenly collapse is about speculation, like the Tulip craze, right? In Capital, Marx wrote about money as if it had to be convertible into a money commodity so the LTV would be clear; he planned to write about inconvertible money, just ran out of time. Anwar Shaikh writes about this, from a LTV perspective, in Capital: Competition, Conflict, Crises.
Dang, you just lengthened my reading list!
@Matt_Noyes BTC claims to be a currency, but it functions like an asset. People "invest" in BTC for the appreciation in value. It's value fluctuates and is usually expressed in the US Dollar exchange rate. It's not really a currency. It's an asset based on nothing.
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