Topic: Intrinsic value?? (Read 1436 times)

It has intinsuc value as a commodity. That value is driven by supply and demand. Same applies to altcoins.

I'm a big believer that bitcoin is more of a commodity, store of value, than a currency. Like gold, it coupd be currency but is more useful as an asset class.

Intrinsic value is a feature or quality of something which cannot be stripped of it without destroying it

Obviously, Bitcoin as such can't have any intrinsic value (apart from purely scientific or cultural interest for future investigators and historians) since its value comes from it usage either as a currency (means of payment) or as an investment asset (vehicle for speculation) rather than its inherent qualities. Without these applications Bitcoin would be worth virtually nothing. It (its blockchain, more specifically) would just take space in some data storage likely going negative in value (i.e. incurring costs for just being there). Altcoins are in the same boat mostly (with an apparent bias toward speculation)

Bitcoin is a bit like fiat in terms of how it gets its value.

In fact, all currencies have no intrinsic value. Even gold silver, palladium, platinum etc. etc.

What matters is whether people TRUST the currency they are holding or not. If they trust that the USD they are holding are worth something, then they will conduct business with that piece of paper, and it now has value.

Bitcoin is better than fiat because anyone can mine bitcoin. It's not satoshi printing any bitcoin out by himself here. The monetary expansion is very controlled and steady, as opposed to fiats.

Simply speaking, yes. Bitcoin is a cryptocurrency we can use as money but it's only part of a greater scheme, a network backed by blockchain.
All part linked together exhibit great utility and therefore BTC is valuable. People desire bitcoins because they are useful: they can make trade easier.
Bitcoin is hard to track and tax and it is proven to be good capital investment and safe haven asset too - all these arguments make BTC useful.

You've just answered yourself, it's down to demand and supply. Bitcoin is decentralized and has no governmental or central control hence it's value is determined by how the public perceives it: either demanding it or leaving abundant supply of it .

Technically No because like what the others said Bitcoin's value only relies on the demand the market is giving it to them. Bitcoin is not like a company who has an intrinsic value or what others call it as a Book Value as their is no financial reports to show and even no Board Members which a company needs to operate. Bitcoin is not even close to a Fiat currency in which we can reflect its price with that country's economy. Bitcoin has been both successful and unsuccessful due to its ever changing demand. But it depends on who is the user some even might benefit its volatility.   

Okay that says it all.
So it is people who are making it valuable by the means of using it and keep on buying the stocks that are being mined. That case demands will come for those who wants to have it also.  This is the reason why it is so precious now. The end will be 21 million but that doesnt say it will be complete. There will be lost bitcoin so every one counts now because it is minimizing in number.
Without people supporting it there will be no bitcoin that have this great amount of value. So it is really the support that makes it so damn expensive.

Nope, Bitcoin or any other altcoin has zero intrinsic value. There is a difference between intrinsic value and utility value. Intrinsic value is determined by inherent value such as copper or bronze by coins. But Bitcoin and altcoins are just creation of code and has zero value if looked from other aspect leaving utility.
However, they do possess utility value which originates from their features and in return creates demand. Higher demand means morw value!!

yes bitcoin as crypto currencies has an intrinsic value! Then the question if it has intrinsic value what it is value? The intrinsic value of bitcoin is it consensus algorithm. Bitcoin and others altcoins as a crypto currencies is a protocol base network like Internet itself. Little I know about its intrinsic value sir!

yes bitcoin has the value backed by the miners and their consumption, bitcoin has a minimum value which is equal to the consumption of miners i think, and the real value which is the one that a users is willing to give to it when buying, we can also say thta the blockchain have a value, because it's a new technology, and like anything revolutionary it hold a good value

I'd argue that Bitcoin does have a fair amount of intrinsic value, primarily stemming from the network system that is in place and the ability to avoid a large majority of other large institutions that take away value in more than one way. However, does it have a large amount of value entirely because of just that? I would also argue yes, since it is a great and very effectively alternative that can store a lot of value in a relatively reliable manner in the event that the rest of the fiat system goes apeshit.

But then you are agreeing with me, the value of bitcoin is derived from its utility, since bitcoin allows us to be our banks and have access to a network with impressive computational power for relatively low fees, that is where the value of bitcoin comes from.

Yest there is. People who argue that bitcoin has no Intrinsic value need to rethink what 'intrinsic value' really means.
Bitcoin allows you to use all features of blockchain, send money to whoever you want no matter the distance.

Imagine bitcoin is a car, a car which can run anywhere, across the lakes, rivers and oceans, you don't have to pay any toll when you cross the bridge, you don't pay for fuel.
A car which can create its own roads - how expensive would be that car? Zero?

There is no such a thing as intrinsic value, the value comes from the uses you can give to something if something is useless then most likely the value is low, there are like always exceptions like items of historic significance like works of art.

Bitcoin's "value proposition" is complex. First, it is true what mindrust said here:


So Bitcoin's 21 million unit limit has not to be understood as of an "absolute limit" for cryptocurrency, but as a limit of "shares" from the particularly "Bitcoin" variant. That actually is the strongest one and will probably continue to be.

What are these "shares" now? Well, here is where "usefulness" comes in: Bitcoin is useful because it has advantages over other money forms. Trustlessness, international potential, and (still!) relatively low fees. So Bitcoins are essentially shares of the network of users that use it because of this properties - merchants, remittance users, and last but not least, speculators and "savers".

But as of now, if we would base the actual Bitcoin price of the "actual use" as a currency, then Bitcoin would be overvalued because it's simply not used very widely as a currency but speculation is the major "tool" of it. So a part of Bitcoin's value is also an estimation of its possible future use.

Only if Bitcoin conserves an advantage with respect to this future estimation over other "altcoins", then it can also work as a store of value or "digital gold". It isn't digital gold only because of the 21 million limit, but also because people believe it could be a major world currency in the future.

Yo, all that shit be blowed rite out da business end o' yo smokin' hot crack pipe, dog.  Bitcoin ain't backed by NUFFIN.  Not tha dam blockchain, not the guvn'ment, not 'lectricity, NUFFIN'.  Get that straight.  The ONLY thang thet give it any value is demamd an' thet the ledger of transactshins be useful ta a lotta computer geeks, drugg addicts, drug sellers, illegal pornograffers, scammas, an' them hard-core degenerite gamblers.  Thank ya, suckas, ya got yo answa.

Intrinsic value could be a contrived term.

If someone were stranded on a deserted island, I don't know if gold, silver, platinum, copper, jewels or diamonds would have much intrinsic value in terms of survival.

Fiat might be useful under those circumstances for writing SOS messages in a bottle.

The term intrinsic value could be designed to compel people to place an excess amount of faith in things like gold and silver.

Intrinsic value may be more of a philosophical term than it is a financial one.

Actually bitcoin's intrinsic value is exactly "0" at the moment.

It is not about usefulness. Bitcoin is very useful indeed.

It is because the code can be copied easily by anyone. (open source) There are hundreds of altcoins which can do exactly what bitcoin does. So %100 of the value of bitcoin is coming from its users.

Nothing is special about bitcoin anymore, because it is not the one and the only, just the first. (some may consider this as a special feature though) Users think bitcoin is special and valuable today, they may think some other coin is better tomorrow. Who knows?

Think about a calculator app. If there was only one calculator app made by apple, nobody would have a choice but to use it. But there are thousands of calc. apps out there and all do the same thing. So calc. apps are worthless now.

definitely bitcoinhas intrinsic value, supported by the blockchain technology. and features has a unique features which is the reason why many of the insiders can't do any bad things about in bitcoin because of the fully 100% security and its decentralization.

Yes it does. People actually use bitcoin because it is usefull for many things. It is practically non-hackable. I don't say it is fully hackproof, but we are talking about billions of dollars on the edge here. It seems people really trust this system. That's the thing which gives bitcoin its instrinstic value.