On... the Value of Things

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They say Beauty is in the Eyes of the Beholder. The same thing can be said about "Value".


For someone who is living through Winter, an air-cond is of no Value. Whereas it totally has value for someone who is living through Summer. The opposite is true for a heater unit. Totally of no Value for someone living through Summer but has immense Value for someone living through Winter.


People always debate the Value of things. But it is very subjective. One thing can be of value to someone but has no value to someone else. Note that Im talking about Value and not Price. Of course, there is some overlap as we assign the Value of something usually through the Price.


The price of a luxury handbag is quite high. This suggests that a luxury handbag has immense value. It can be - for someone who likes the brand a lot. But to me, a luxury handbag does not have value at all. First of all, I do not use a handbag and secondly, even if I do, I would not care very much about the brand. 


And then there is the debate of whether Bitcoin has any value. A lot of people from traditional finance says that Bitcoin has no Value and should be zero. Warren Buffett famously said that Bitcoin is rat poison. Well, Warren is not wrong as Bitcoin has no value to him because just like a luxury handbag to me, Bitcoin has no use case for Buffett.


But there are lots of people that can argue that Bitcoin has value such as online transaction, store of value, decentralized money, etc.. The purpose of this posts is not to say whether Bitcoin has value or not. To some people it has value, to others it does not. Both party is right and there is no point in shouting past each other.


Does it matter though? As a trader, not really. We're only interested in Price and not Value. If there is Liquidity, we trade them. Trade the trade, let the Philosopher's argue about the Value.

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