The Intrinsic Value of Bitcoin

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  • Thu, Oct 01, 2020 - 08:40am

    #1
    Mohammed Mast

    Mohammed Mast

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    The Intrinsic Value of Bitcoin

In depth look at the intrinsic value of BTC . It would also be helpful to see my other post ” An Open Letter to Ray Dalio re. Bitcoin.

https://kraken.docsend.com/view/ehvdmebb8gkveecj?utm_source=content+announcement&utm_medium=email&utm_campaign=bitcoin+intrinsic+value&utm_content=content+link

  • Thu, Oct 01, 2020 - 09:29am

    #2

    Jim H

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    The Intrinsic Value of Bitcoin

I didn’t read the link MM, but I have long argued that Bitcoin indeed has intrinsic value as innovative software that solves several problems in terms of money and accounting.  We value software companies and their products quite readily, and yet their products are ultimately nothing but encoded information.  It’s the elegance of that code that counts.  Bitcoin does scarcity integrity in a rock solid way, which is how it gained trust as money.  It’s creation mechanism is 100% transparent and cannot be gamed, and in fact anyone can participate in creation if they want to invest in hardware.  It’s the lack of a defined, transparent, and scarcity-integrity supportive creation mechanism that has caused most local currencies, like the Ithaca Hours, to ultimately fail.  It’s that simple.

  • Thu, Oct 01, 2020 - 12:00pm

    #3
    Mohammed Mast

    Mohammed Mast

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    The Intrinsic Value of Bitcoin

Hey Jim

This is an in depth look at BTC for its intrinsic value in relation to “traditional” assets such as stocks, bonds, commodities etc.

On a side note Kraken is producing some very good educational material on crypto.

  • Fri, Oct 02, 2020 - 06:49am

    #4
    Hans

    Hans

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    The Intrinsic Value of Bitcoin

For me the definition of intrinsic where money or currency is involved is: what value does it have when the monetary value is removed?

For a paper dollar it has value as wallpaper or you can use it to light a fire. Gold and silver have intrinsic value as a commodity or to make beautiful things with it.

Digital dollars and digital currency have no intrinsic value at all. None.

  • Fri, Oct 02, 2020 - 08:16am

    #5

    Jim H

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    The Intrinsic Value of Bitcoin

Hans said,

Digital dollars and digital currency have no intrinsic value at all. None.

Bitcoin is not, “Digital currency”.  It is not currency at all… it is a unit of information space on the blockchain, as maintained on the Bitcoin network.  You can own units of 1 Bitcoin, or subunits thereof.  You can buy,  sell, and trade these units, and hence, like cigarettes in a prison, they start to act like money.

We can argue about what the value should be for a unit of Bitcoin in dollars, just like we argue about what Gold should be worth in dollars, but the idea that Bitcoin has no value is absurd.  Bitcoin is useful and has value.  Would you argue that Windows 10 has no intrinsic value at all?

  • Fri, Oct 02, 2020 - 08:51am

    #6
    Mohammed Mast

    Mohammed Mast

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    The Intrinsic Value of Bitcoin

Everyone has “belief systems” . You clearly have a “belief system” . “Belief systems” are impenetrable to facts and reason so I do not bother.

Hans I would suggest you actually read the article. You would be surprised that you can learn something.

  • Fri, Oct 02, 2020 - 08:59am

    #7

    Jim H

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    The Intrinsic Value of Bitcoin

MM.. I did finally read the article.. it doesn’t even mention one of the most interesting applications of Bitcoin, aka the blockchain;  Triple entry accounting.

https://medium.com/dataseries/triple-entry-accounting-system-a-revolution-with-blockchain-768f4d8cabd8

It is very essential to understand what is a blockchain and how does it work? In simple terms, blockchain refers to a digital ledger that is distributed among multiple locations in order to ensure security and ease of access globally. At present, this technology is primarily used for bitcoin and other cryptocurrencies and has just penetrated the accounting processes but domain experts opine that it’s only a matter of time till it will entirely disrupt the accounting processes.

Does the potential to revolutionize accounting imply value?  Ummmmmmmm?

  • Sat, Oct 03, 2020 - 08:09am

    #8
    tbp

    tbp

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    About “intrinsic” value

There is this weird meme that people buy into that “intrinsic value” is the most important type of value… when clearly it’s not the case for many things. Even for  gold and other precious metals, if you didn’t have some kind of price-discovery mechanism, the “intrinsic value” would be a wild guess. The more important value comes from extrinsic factors, or mental valuations we give it. Nobody would suggest a $100 bill has no value simply because its intrinsic value as paper is limited to producing heat in a fire or wiping your ass. The “intrinsic” (non-mental) value is something that’s relevant to non-human animals and 2nd density beings (biosphere)… not humans operating in the noosphere.

Check this out, first in 3 minutes, then in 40 minutes:

 

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