prices are a ratio
you assume that they are based on some divinely imposed standard like the tablets of Moses
bitcoin is like physical gold, you can't just make it appear from nowhere
the value of bitcoin is what you can trade it for, just as the price of something is what you can charge for it
setting that "value" is done by all of us in relation to our needs for different things and the resources we have to trtade for them
Prices aren't a ratio. They're a reflection of what the seller will let an item go for and what a buyer will pay to purchase the item. They have very little to do with the cost of production (while those costs must be taken into account, it's only a small part of the price).
4 pears are worth 1 dollar (4:1)
6 dollars are worth 2 sodas (6:2)
All prices are ratios like this. This ratio exists due to market dynamics between sellers and buyers (like you said) and can change over time. The cost of production is usually a factor but like you said, it isn't everything.
You both likely agree and are just looking at things from different perspectives.
that's the fun of ratios! they have two sides!
he's wrong, also, prices are always ratios
not just misunderstanding economics but basic mathematics too, all measures are ratios of something to something else
there is some contention in the world of science about the metric system relating to this, and funny little artifacts in a museum in paris
the fun part has to do with how they devised teh metre, as that's the "divinely given" base, it's from the distance from pole to pole of the earth, divided by 10,000 - theoretically...
Fair, I misspoke about prices not being ratios. However, I'm not otherwise wrong. The cost of production is not as important as what the consumer is willing to part with to acquire something.
