How does anyone who subscribes the Labor Theory of Value get behind bitcoin and cryptocurrency?

@beckett Why would that be a problem? (not being snarky, just don't get it)

@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.


@Matt_Noyes @beckett I'd also throw out that more or less put to bed the marxist notion of a direct linkage between investment capitalization and productive capacity in favor of capitalization reflecting relative amounts of power to order and reorder economic life.

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