Price & Value Are Not The Same
I don’t think you can blame anyone for this. We all do this, right? Subconsciously? I mean, every time when I buy something for a lot of money I automatically assume that it is worth a lot of money.
I don’t like the feeling of paying too much for something so I rather rationalize to myself that it was actually worth it, right?

We tend to over appreciate price relatively to the underlying product, service or asset. If we pay $ 10.000 dollar for a boat trip near the coast of Ibiza or Miami you can bet you ass that we really enjoy the champagne & the surroundings more than if we only would have paid $ 2000,-.

Everything seems more beautiful when the price is high. It’s okay, it’s human psychology. And when it’s low or free? Well, then it’s replaceable or not worth our time.

Free? Please, that has to be complete BS right?

Only $ 30,- dollars for an online training? Probably some kind of low life entrepreneur who doesn’t make any money him/herself otherwise she would not have done it for so little money…

What is price?
Price is nothing more than the end result of what the market (all the potential customers) of a certain product/service/asset are willing to pay for. It all depends on different factors like quality, scarcity, problem solvability, accessibility, etc..

But if we dive deeper into the products, services and assets with actual higher prices “than normal/average” we can come to the conclusion that another factor is way more important for the actual price than anything else; The Narrative.

The narrative around the asset is, for a big part at least, really important to most humans. Because we want to belong. We want to feel special. The narrative around a product that makes you feel special and make you feel like you belong to a certain community is most probable the driver why you pay so much money for something that actually doesn’t have more fundamental value than any other competitive product.

This, to me, is interesting. Some people want to buy a specific watch with a price of $ 50.000 dollars even though it works just as good as a watch of $ 1000,-. Why? Because now you are special. The world sees that you have this expensive watch and you now also belong to the “community” of “people with expensive watches”, right?

Let’s be clear, I don’t mind! I don’t mind at all. I get it. I am human too!!

I want those watches, cars, houses, Islands, boats, jets, just as much as you do.

But is it really worth it? Does it has the fundamental value relatively to its price? Emotionally, yes, maybe. Rationally, to be honest, no, almost never..

Most of the cheaper versions of those products/services can solve the same problems as the expensive ones, but it only feels different. To you.

What is value?
Okay, with that out of the way. What is value then?
Well, the actual value of a product, service or asset is something more fundamentally.

What does it solve?
How long does it work?
How many people need it?
Is it irreplaceable?
Can it be destroyed?
Is it actually worth something to everybody?

Meaning, does the whole world need it and can anybody on this planet actually use it as well? Is it available to anyone, forever?

Now you think more about fundamentals. But this is something different than price, right?

I mean, if we make it real easy, what are the most important things in life? For everyone?

Oxygen
Water
Fire
Food
….

You see where I am going with this? All the fundamental questions I just asked work out perfectly for these things.

So even though the prices of these things may seem very low, it has nothing to do with its true value.
You need it. You need it every day as long as you live.

Fundamental value of a certain object/thing has nothing to do with price. Price is, for the most part, dependent of the narrative the producer has created to make you want to have that product. You don’t need it though…you want it.

You know what another really important thing is we need in life?

Money.

Without money, we would still be before the middle ages development-wise. Because money is the only thing we have to store our value/energy in. If we work now, we can spend it later. First we needed to barter, now we can store our value in an element, save it, spend it later so that we can all do the work where we are good at instead of being an expert in everything (farming, cleaning water, hunting, legal, electrician, making furniture, etc, etc).

Bitcoin is that new form of money, that we all so desperately need. We just don’t know it yet.
So the price goes down, because the narrative does not fit momentarily, but the true fundamental value hasn’t changed at all.

And yet, nobody is buying. Because, well, the narrative…

Why value is way more important than price…
I think I’ve made my point. Before you buy something, think about the value before you check out the price.
Do you actually need the value of the new, shiny, expensive car? Or do you want to pay too much to fit in the narrative that you told yourself about that car?

What is it?

True value is forever. Bitcoin is true value. The fact that the price is going down doesn’t say anything about the value. The only conclusion you can draw from this is that, relatively to its value & potential, it is really cheap.

So that’s why it is so counterintuitive for people to actually buy when it gets cheaper whereas in the contrary everyone only buys when it gets more expensive.
Don’t look at the price! Look at its value!!

My advice? Don’t buy anything “expensive” if you don’t know the true value of it. If you can not, rationally, explain why it is so expensive, chances are that you are stuck in the narrative society tells you.

That’s why you shouldn’t listen to society at all. Study it yourself. Study Bitcoin. Chances are pretty big you will draw the conclusion that the cheaper it becomes, the even more valuable it gets to you.

That’s what we do at Crypto Unseen. We study Bitcoin. We study Crypto. We study the market. We don’t tell you to buy anything, we study. So that you know what is the difference between the price of the asset, and its value.

So that you will NOT buy an asset when it is overpriced relatively to its value.
Come and study Bitcoin with us. You are going to like it 🙂