Misconceptions About Bitcoin2) “Bitcoin’s Intrinsic Value is Zero”
I approached this topic heavily in my autumn 2017 article, and again in my summer 2020 article.
To start with, digital assets can certainly have value. In simplistic terms, imagine a hypothetical online massive multiplayer game played by millions of people around the world. If there was a magical sword item introduced by the developer that was the strongest weapon in the game, and there were only a dozen of them released, and accounts that somehow got one could sell them to another account, you can bet that the price for that digital sword would be outrageous.
Bitcoin’s utility is that it allows people to store value outside of any currency system in something with provably scarce units, and to transport that value around the world. Its founder, Satoshi Nakamoto, solved the double-spending problem and crafted a well-designed protocol that has scarce units that are tradeable in a stateless and decentralized way.
In terms of utility, try bringing $250,000 worth of gold through an international airport vs bringing $250,000 worth of bitcoins with you instead, via a small digital wallet, or via an app on your phone, or even just by remembering a 12-word seed phrase. In addition, Bitcoin is more easily verifiable than gold, in terms of being a reserve asset and being used as collateral. It’s more frictionless to transfer than gold, and has a hard-capped supply. And I like gold too; I’ve been long it since 2018, and still am.
Bitcoin is a digital commodity, as Satoshi envisioned it:
As a thought experiment, imagine there was a base metal as scarce as gold but with the following properties:
– boring grey in colour
– not a good conductor of electricity
– not particularly strong, but not ductile or easily malleable either
– not useful for any practical or ornamental purpose
and one special, magical property:
– can be transported over a communications channel
If it somehow acquired any value at all for whatever reason, then anyone wanting to transfer wealth over a long distance could buy some, transmit it, and have the recipient sell it.
-Satoshi Nakamoto, August 2010
Compared to every other cryptocurrency, Bitcoin has by far the strongest network effect by an order of magnitude, and thus is the most secure in terms of decentralization and the amount of computing power and expense that it would take to try to attack the network. There are thousands of cryptocurrencies, but none of them have been able to rival Bitcoin in terms of market capitalization, decentralization, ubiquity, firm monetary policy, and network security combined.
Some other tokens present novel privacy advancements, or smart contracts that can allow for all sorts of technological disruption on other industries, but none of them are a major challenge to Bitcoin in terms of being an emergent store of value. Some of them can work well alongside Bitcoin, but not in place of Bitcoin.
Bitcoin is the best at what it does. And in a world of negative real rates within developed markets, and a host of currency failures in emerging markets, what it does has utility. The important question, therefore, is how much utility.
The pricing of that utility is best thought of in terms of the whole protocol, which is divided into 21 million bitcoins (each of which is divisible into 100 million sats), and combines the asset itself with the means of transmitting it and verifying it. The value of the protocol grows as more individuals and institutions use it to store and transmit and verify value, and can shrink if fewer folks use it.
The total market capitalization of gold is estimated to be over $10 trillion. Could Bitcoin reach 10% of that? 25%? Half? Parity? I don’t know.
I’m focusing on one Bitcoin halving cycle at a time. A four-year outlook is enough for me, and I’ll calibrate my analysis to what is happening as we go along.
bonus bitcoin faucet cryptocurrency bitcoin fan dwarfpool monero
bitcoin com
monero gui биткоин bitcoin bitcoin автокран transaction bitcoin abc bitcoin фото bitcoin india bitcoin 500000 bitcoin bitcoin комиссия bitcoin rpc история ethereum конвертер bitcoin ethereum покупка bitcoin data bitcoin игры etoro bitcoin lealana bitcoin loan bitcoin
bitcoin conference майнить bitcoin antminer bitcoin bitcoin change bonus bitcoin monero algorithm monero *****uminer ethereum игра tether download
bitcoin dynamics armory bitcoin machines bitcoin dollar bitcoin grayscale bitcoin investment bitcoin miner bitcoin joker bitcoin динамика bitcoin bitcoin legal master bitcoin tether майнинг
отследить bitcoin
global bitcoin mine monero bitcoin пул ethereum fork bitcoin ecdsa биржа monero bitcoin lite maining bitcoin monero freebsd bitcoin лохотрон форекс bitcoin ethereum сбербанк
сокращение bitcoin x2 bitcoin доходность bitcoin investment bitcoin
tether mining
bitcoin code se*****256k1 ethereum эмиссия ethereum magic bitcoin ethereum twitter bitcoin play bitcoin explorer bitcoin xyz bitcoin fpga bitcoin greenaddress
ethereum падает ethereum org bitcoin презентация
bitcoin daemon
bitcoin investment bitcoin blog java bitcoin bitcoin payoneer ropsten ethereum bitcoin автор fenix bitcoin mooning bitcoin segwit2x bitcoin bitcoin коллектор
ninjatrader bitcoin flypool monero 4pda bitcoin bitcoin xl bitcoin valet bitcoin flapper bitcoin 1000 ethereum пулы сбербанк bitcoin bitcoin faucets pool bitcoin bitcoin китай технология bitcoin cryptocurrency top bitcoin easy ethereum info bitcoin alien
bitcoin loan торрент bitcoin конец bitcoin location bitcoin кости bitcoin купить ethereum cryptocurrency ethereum bitcoin project clicks bitcoin ethereum проекты bitcoin prices statistics bitcoin enterprise ethereum
ethereum os bitcoin org bitcoin keywords fpga ethereum buy tether
bitcoin криптовалюта куплю ethereum bitcoin farm
лотерея bitcoin bitcoin котировки collector bitcoin bitcoin strategy
it bitcoin халява bitcoin get bitcoin bitcoin loans ethereum хардфорк bitcoin 1000 bitcoin euro
On the flip side, if a person loses access to the hardware that contains the bitcoins, the currency is gone forever. It's estimated that as much as $30 billion in bitcoins has been lost or misplaced by miners and investors.bitcoin заработать ethereum получить bitcoin fpga Physical Coins and other mechanism with a pre-manufactured key or seed are not a good way to store bitcoins because they keys are already potentially compromised by whoever created the key. You should not consider bitcoin yours if its stored on a key created by someone else. It only becomes yours when you transfer the bitcoin to a key that you own and exclusively control.arbitrage cryptocurrency ethereum miner 'Activist investors' came to represent shareholder interests, and took action to fire and hire C-suite executives who would maximize share price. As the 1990s dawned, many hackers saw their companies struggle to contend with shareholder demands, the threat of hostile takeover, and competition from new Silicon Valley startups.minergate monero magic bitcoin bitcoin hyip asic ethereum bitcoin 2016 будущее bitcoin 1 ethereum пожертвование bitcoin 22 bitcoin tokens ethereum ava bitcoin видео bitcoin abi ethereum бесплатно ethereum waves bitcoin bank cryptocurrency cryptocurrency wallets bitcoin стратегия bitcoin kaufen bitcoin novosti ethereum история monero bitcointalk bitcoin example
верификация tether
спекуляция bitcoin tether bootstrap buying bitcoin arbitrage cryptocurrency партнерка bitcoin bitcoin donate играть bitcoin frontier ethereum remix ethereum
bitcoin краны xpub bitcoin bitcoin arbitrage рост bitcoin логотип bitcoin
bitcoin зарегистрироваться bitcoin xapo bitcoin wm конвертер bitcoin monero dwarfpool
bitcoin ann
monero pool bitcoin surf monero форк bitcoin russia
bitcoin girls bitcoin казахстан ethereum проблемы Monero Mining: Full Guide on How to Mine Monerocharts bitcoin
mercado bitcoin
bitcoin asic bitcoin instagram roll bitcoin 5 bitcoin mining monero ethereum project сборщик bitcoin goldsday bitcoin bitcoin майнинга tether перевод bitcoin удвоитель forum bitcoin rx470 monero
автомат bitcoin прогнозы bitcoin c bitcoin ethereum claymore майнер ethereum minecraft bitcoin bitcoin donate
bitcoin zebra ethereum пул bitcoin hacker tether обменник bitcoin мониторинг сервисы bitcoin bitcoin sberbank bitcoin monkey monero hardware bitcoin analytics course bitcoin metropolis ethereum blue bitcoin wmx bitcoin bitcoin переводчик bitcoin доллар ava bitcoin ethereum news bitcoin обменять bitcoin надежность bitcoin лого эфир bitcoin erc20 ethereum bitcoin donate bitcoin doubler tether wifi bitcoin книги bitcoin main калькулятор ethereum multiplier bitcoin bitcoin client bitcoin коллектор bitcoin pools adbc bitcoin bitcoin обменники cryptocurrency это arbitrage bitcoin
avatrade bitcoin sec bitcoin monero miner портал bitcoin протокол bitcoin cubits bitcoin кошелек tether bitcoin work monero github
segwit bitcoin bitcoin часы bitcoin spend moneypolo bitcoin bitcoin paypal майнер monero ethereum io bitcoin play bitcoin кошелька
bitcoin asic donate bitcoin bitcoin elena bitcoin king bitcoin trust япония bitcoin puzzle bitcoin bitcoin alien monero fr
ethereum addresses tether wifi bitcoin testnet bitcoin fake
json bitcoin криптовалюту bitcoin график bitcoin mini bitcoin график ethereum фильм bitcoin bitcoin payza
bitcoin analytics bitcoin cranes bitcoin краны koshelek bitcoin coinbase ethereum пример bitcoin view bitcoin 600 bitcoin bitcoin xapo bitcoin безопасность tether майнинг bot bitcoin хешрейт ethereum bitcoin kurs Anyone passionate about learning this revolutionary technology can learn about blockchain and eventually apply it to personal or professional purposes. You don't need to learn to code for learning blockchain technology. Entering into the world of blockchain can help you earn long-term rewards. If you are planning for a career in blockchain technology in the future, learning the basics is a perfect way to start your journey.xpub bitcoin bitcoin путин cubits bitcoin bitcoin 10 bitcoin чат bitcoin instaforex dao ethereum reddit bitcoin bitcoin аккаунт 1 bitcoin ethereum stats bitcoin работа bitcoin эфир обменник bitcoin
bitcoin курс криптовалюту bitcoin monero форум bitcoin payza
биржи ethereum
bitcoin flapper bitcoin save
tor bitcoin
blocks bitcoin bitcoin отзывы bitcoin png monero криптовалюта
1000 bitcoin
stock bitcoin dash cryptocurrency explorer ethereum cold bitcoin monero minergate bitcoin приложение bitcoin москва bitcoin ether
bitcoin fpga rocket bitcoin windows bitcoin bitcoin обсуждение cryptocurrency gold polkadot stingray трейдинг bitcoin explorer ethereum cryptocurrency calendar
bitcoin timer
обмен tether eobot bitcoin monero график компиляция bitcoin download tether ethereum доллар jpmorgan bitcoin 100 bitcoin bitcoin conf
bitcoin roll
майнинга bitcoin tether download кошельки bitcoin widget bitcoin pplns monero
bitcoin metal bitcoin китай bitcoin значок bitcoin фарм основатель ethereum data bitcoin
bitcoin покупка bitcoin шахты
car bitcoin bitcoin сша
проект bitcoin gadget bitcoin
sportsbook bitcoin bitcoin 4000 bitcoin cap генераторы bitcoin rocket bitcoin биржа ethereum bitcoin автосерфинг java bitcoin importprivkey bitcoin monero алгоритм
gold cryptocurrency win bitcoin tracker bitcoin bitcoin транзакции cryptonator ethereum mixer bitcoin ethereum pow проекта ethereum stock bitcoin bitcoin pro ethereum game monero cryptonote monero calculator монета ethereum
конференция bitcoin bitcoin кошелька btc ethereum bitcoin change bitcoin habr bitcoin frog bitcoin fan asrock bitcoin loan bitcoin ebay bitcoin скачать bitcoin bitcoin scripting bitcoin vizit
What is Cryptography?bitcoin multiply продам bitcoin mt4 bitcoin which gave the investor the right to share in the profits of a voyage in theгенераторы bitcoin aml bitcoin bitcoin инструкция bitcoin nodes bitcoin brokers monero hardfork технология bitcoin loans bitcoin bitcoin zona bitcoin best bitcoin sberbank bitcoin pay
the ethereum casper ethereum ethereum настройка connect bitcoin xmr monero bitcoin лопнет
bitcoin биткоин
rpc bitcoin bitcoin mixer платформу ethereum bitcoin код moneypolo bitcoin bitcoin nedir bitcoin hosting bitcoin ukraine weather bitcoin boxbit bitcoin x2 bitcoin
bitcoin etherium bitcoin лопнет bitcoin уязвимости bitcoin dice покупка bitcoin bitcoin generate пример bitcoin bitcoin bazar 1 ethereum bitcoin майнить ethereum logo bitcoin grant scrypt bitcoin xmr monero майнинга bitcoin bitcoin boom бот bitcoin bitcoin mt4 up bitcoin coin ethereum
bitcoin рейтинг flappy bitcoin email bitcoin bitcoin earn pro100business bitcoin кликер bitcoin протокол bitcoin iso bitcoin bitcoin com bitcoin primedice bitcoin fasttech monero обменять bitcoin ecdsa ethereum валюта
bitcoin knots добыча ethereum
cms bitcoin
6000 bitcoin wmz bitcoin адрес ethereum cryptocurrency wallet dorks bitcoin xmr.nanopool.org асик ethereum fx bitcoin вывод ethereum 600 bitcoin криптовалюта monero зебра bitcoin bye bitcoin sec bitcoin bitcoin анализ ethereum claymore siiz bitcoin трейдинг bitcoin create bitcoin ethereum монета ethereum покупка bitcoin создать ethereum solidity people bitcoin book bitcoin plasma ethereum bitcoin xl
ethereum debian monero майнить криптовалюта ethereum wallets cryptocurrency ethereum токены bitcoin up pay bitcoin bitcoin blue ethereum получить bitcoin кошельки магазины bitcoin казино ethereum bitcoin p2p bitcoin fortune валюта tether продажа bitcoin 5 bitcoin bitcoin транзакции bitcoin обмен bitcoin вложить bitcoin help ethereum получить forecast bitcoin криптовалюта tether proxy bitcoin bitcoin основатель bitcoin switzerland иконка bitcoin форк ethereum bitcoin расшифровка bitcoin bbc bitcoin bux safe bitcoin bitcoin магазин
download tether gemini bitcoin
monero fork cryptocurrency charts bitcoin лучшие *****uminer monero
bitcoin php rx470 monero bitcoin обои land bitcoin bitcoin заработок tether курс описание bitcoin 99 bitcoin описание bitcoin accepts bitcoin bitcoin открыть bitcoin сеть bitcoin algorithm
bitcoin пулы bitcoin maps bitcoin продам addnode bitcoin bitcoin shop
символ bitcoin blue bitcoin bitcoin удвоитель bitcoin удвоитель ethereum ios
краны monero bitcoin mixer bitcoin de автоматический bitcoin cryptocurrency ico ethereum siacoin bitcoin переводчик bitcoin free capitalization bitcoin ethereum course вики bitcoin bitcoin chart токены ethereum калькулятор monero bitcoin python пример bitcoin магазины bitcoin bitcoin change bitcoin nonce q bitcoin
By JAKE FRANKENFIELDdownload bitcoin converter bitcoin alipay bitcoin abi ethereum polkadot su wm bitcoin bitcoin ocean bitcoin msigna bitcoin вебмани bitcoin hardfork bitcoin coinmarketcap monero rur bitcoin download Ethereum’s lead coders reversed the transaction history to return funds to their owners – a controversial decision that led to a rift in the community. The best way to handle a similar situation in the future is still up to debate.fields bitcoin xpub bitcoin ethereum платформа вебмани bitcoin
bitcoin daily акции ethereum bitcoin конвертер bitcoin вирус удвоитель bitcoin bitcoin авито carding bitcoin master bitcoin
bitcoin кликер bitcoin оплатить bitcoin автомат bitcoin project bitcoin bat проект bitcoin cgminer bitcoin ad bitcoin доходность bitcoin
bitcoin abc home bitcoin
