Bitcoin's Intrinsic value - page 2. | Bitcointalksearch.org

Labad

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Quote from: HabBear on June 01, 2018, 12:01:50 AM

Quote from: jubalix on May 31, 2018, 11:49:25 PM

Many quarters object to bitcoin on the basis it does not have "intrinsic value".

And many quarters are correct, Bitcoin as a currency does not have intrinsic value.

No currency has intrinsic value because there are no underlying assets related to the investment, it's merely a medium of exchange that derives its value based on the balance between supply and demand. SOURCE.

Yes I do agree with this. Currency don't have intrinsic value, people only value currency because it is a medium of exchange, a tool which they use in order to survive.

jubalix

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Quote from: HabBear on June 01, 2018, 12:01:50 AM

Quote from: jubalix on May 31, 2018, 11:49:25 PM

Many quarters object to bitcoin on the basis it does not have "intrinsic value".

And many quarters are correct, Bitcoin as a currency does not have intrinsic value.

No currency has intrinsic value because there are no underlying assets related to the investment, it's merely a medium of exchange that derives its value based on the balance between supply and demand. SOURCE.

Now, Bitcoin as an investment could have intrinsic value, but it's hard to calculate what it is. The challenge is that investment professionals don't even agree on the correct way to calculate intrinsic value. And with Bitcoin there is not underlying asset, earnings, debt, or dividends that other investments have. These metrics are used for any calculation of intrinsic value.

How would you calculate Bitcoin's intrinsic value? Don't forget to show your work!

I suppose there could be some argument as to the meaning of "intrinsic"

However I think the valuation, and organisation of all other things is a the intrinsic value of FIAT.

Eg it facilitates trade and interaction on a scale and efficiency that cannot be otherwise had.

HabBear

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Quote from: jubalix on May 31, 2018, 11:49:25 PM

Many quarters object to bitcoin on the basis it does not have "intrinsic value".

And many quarters are correct, Bitcoin as a currency does not have intrinsic value.

No currency has intrinsic value because there are no underlying assets related to the investment, it's merely a medium of exchange that derives its value based on the balance between supply and demand. SOURCE.

Now, Bitcoin as an investment could have intrinsic value, but it's hard to calculate what it is. The challenge is that investment professionals don't even agree on the correct way to calculate intrinsic value. And with Bitcoin there is not underlying asset, earnings, debt, or dividends that other investments have. These metrics are used for any calculation of intrinsic value.

How would you calculate Bitcoin's intrinsic value? Don't forget to show your work!

jubalix

legendary

Activity: 2632

Merit: 1023

Many quarters object to bitcoin on the basis it does not have "intrinsic value".

What then is is the intrinsic value of (fiat) paper money?

The ability to arrange the use and value of all other things.

Bitcoin is immune to multitude of actions that a gov may take by quantitative easing, interest rates, capital controls, etc and emerges as a better means to value all other things and arrange their use.

A central plank of bitcoins intrinsic value and arrange the use of all other things.

There's a multi Trillion proposition right there.

Topic: Bitcoin's Intrinsic value - page 2. (Read 248 times)