Topic: Securing Bitcoin future and Intrinsic value (Read 150 times)
Nothing. Bitcoin has no intrinsic value. What gives it value is simply supply and demand in the marketplace for an uncensorable digital token that operates outside the financial system.
Intrinsic value is a shitty paramater to evaluate any asset.
The value of any asset is more of a psychological than fundamental isssue.
What do you think has more value between a diamond and water.
Without water you can't survive but you get it for free in most part of he world.
But you pay so much for buying diamonds...do you see any value of a diamond except wearing it to show off your wealth?
You pay more for a diamond because supply is low and demand is high thats the only reason for it to be priced so exorbitantly.
Same is the case with bitcoin..it has a limited supply and its a peer to peer medium lf exchnage..faster than your conventional bank,Moreover that it gives you control over your asset unlike banks.
So people talking bad about bitcoin with terms like intrinsic value or its utility are same people who missed the boat during Dotcom bubble or the same people who with all their intelligence couldnt help themselves from 2008 economy crash.
The value of any asset is more of a psychological than fundamental isssue.
What do you think has more value between a diamond and water.
Without water you can't survive but you get it for free in most part of he world.
But you pay so much for buying diamonds...do you see any value of a diamond except wearing it to show off your wealth?
You pay more for a diamond because supply is low and demand is high thats the only reason for it to be priced so exorbitantly.
Same is the case with bitcoin..it has a limited supply and its a peer to peer medium lf exchnage..faster than your conventional bank,Moreover that it gives you control over your asset unlike banks.
So people talking bad about bitcoin with terms like intrinsic value or its utility are same people who missed the boat during Dotcom bubble or the same people who with all their intelligence couldnt help themselves from 2008 economy crash.
I agree that Bitcoin demand must stem from utility rather than its potential for price growth for true adoption. That has always been the end game, which is why everyone is racing towards a solution for scaling and why it's such a hot topic within the community. That being said, if it could be used for both, why shouldn't it?
It's currently widely used as a store of value because it's pretty much perfect for the role as it currently is. It's easy to store, it's easy to transfer, it's easy to secure, it's liquid, it's immune from local economic instability, and it has a ridiculously high return potential. It's hard to blame people for using it as such.
On the other hand, its utility as a payment system is still flawed from its lack of scalability to its volatility and less than ideal user experience. Its utility isn't being ignored just because; its utility is being ignored because there are numerous other options that are (subjectively) better and easier to use. Once this area improves, which it will, I'm sure more people will be using it. People tend to forget that Bitcoin is essentially still in its infancy and still has a lot of room for improvements.
It's currently widely used as a store of value because it's pretty much perfect for the role as it currently is. It's easy to store, it's easy to transfer, it's easy to secure, it's liquid, it's immune from local economic instability, and it has a ridiculously high return potential. It's hard to blame people for using it as such.
On the other hand, its utility as a payment system is still flawed from its lack of scalability to its volatility and less than ideal user experience. Its utility isn't being ignored just because; its utility is being ignored because there are numerous other options that are (subjectively) better and easier to use. Once this area improves, which it will, I'm sure more people will be using it. People tend to forget that Bitcoin is essentially still in its infancy and still has a lot of room for improvements.
OMG!
I am so glad you contributed to this.
Please allow me to quote to you
"It's currently widely used as a store of value because it's pretty much perfect for the role as it currently is. It's easy to store, it's easy to transfer, it's easy to secure, it's liquid, it's immune from local economic instability, and it has a ridiculously high return potential. It's hard to blame people for using it as such. "
"People tend to forget that Bitcoin is essentially still in its infancy and still has a lot of room for improvements."
Our goal should be focused on securing Bitcoin's future so that the ordinary person can have a lasting experience.
I agree that Bitcoin demand must stem from utility rather than its potential for price growth for true adoption. That has always been the end game, which is why everyone is racing towards a solution for scaling and why it's such a hot topic within the community. That being said, if it could be used for both, why shouldn't it?
It's currently widely used as a store of value because it's pretty much perfect for the role as it currently is. It's easy to store, it's easy to transfer, it's easy to secure, it's liquid, it's immune from local economic instability, and it has a ridiculously high return potential. It's hard to blame people for using it as such.
On the other hand, its utility as a payment system is still flawed from its lack of scalability to its volatility and less than ideal user experience. Its utility isn't being ignored just because; its utility is being ignored because there are numerous other options that are (subjectively) better and easier to use. Once this area improves, which it will, I'm sure more people will be using it. People tend to forget that Bitcoin is essentially still in its infancy and still has a lot of room for improvements.
It's currently widely used as a store of value because it's pretty much perfect for the role as it currently is. It's easy to store, it's easy to transfer, it's easy to secure, it's liquid, it's immune from local economic instability, and it has a ridiculously high return potential. It's hard to blame people for using it as such.
On the other hand, its utility as a payment system is still flawed from its lack of scalability to its volatility and less than ideal user experience. Its utility isn't being ignored just because; its utility is being ignored because there are numerous other options that are (subjectively) better and easier to use. Once this area improves, which it will, I'm sure more people will be using it. People tend to forget that Bitcoin is essentially still in its infancy and still has a lot of room for improvements.
Hypothesis 1: If the world fails to accept Bitcoin, chance are Bitcoin might be just as it is now or it will be run off by another coin that is universally accepted and effectively utilized.
what makes another altcoin accepted while bitcoin isn't?!!!newsflash, if bitcoin fails to be used altcoins don't have anything on bitcoin to be used in its stead. they will fail sooner and faster than bitcoin if your hypothesis is right.
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This is exactly what will make another Altcoin thrive globally should Bitcoin fail to serve it purpose.
1. When the coin serves the basic needs of the global population at a stable price regardless the market demand.
Who wouldnt like to purchase a coin whose market price remains same and serves it purpose over decades.
Something Alt coins should learn from.
Generate a coin whose utility is valueless, whose market price is fixed, whose profit margin is nominal and stable.
2. When the coin can easily be purchased by ordinary people and used for it supposed purpose.
Why buy a coin because the price was low at year A, and hope that the market will be pumped so you sell it at year B?
It appear all coins are following in the steps of Bitcoin. That therefore explains the cycle, and the reasons for outrageous changes on exchanges.
If people fail to accept cryptocurrency may be it because of the concept of buy and sell, make profit and scam inherent. let make crypto more fun than just buy and hold, sell and make profit.
I should be able to purchase a particular coin in the crypto market not because i wish to keep it and make profit out of it later, but because i wish to it for it main purpose.
1. When the coin serves the basic needs of the global population at a stable price regardless the market demand.
Who wouldnt like to purchase a coin whose market price remains same and serves it purpose over decades.
Something Alt coins should learn from.
Generate a coin whose utility is valueless, whose market price is fixed, whose profit margin is nominal and stable.
2. When the coin can easily be purchased by ordinary people and used for it supposed purpose.
Why buy a coin because the price was low at year A, and hope that the market will be pumped so you sell it at year B?
It appear all coins are following in the steps of Bitcoin. That therefore explains the cycle, and the reasons for outrageous changes on exchanges.
If people fail to accept cryptocurrency may be it because of the concept of buy and sell, make profit and scam inherent. let make crypto more fun than just buy and hold, sell and make profit.
I should be able to purchase a particular coin in the crypto market not because i wish to keep it and make profit out of it later, but because i wish to it for it main purpose.
There's no such thing as intrinsic value, and Bitcoin isn't just store of value or just currency, it has many uses and people around the world are using it according their needs. Preserving value, investing, hedging, medium of exchange, long distance transfers, shadow economy and so on - there are many uses for Bitcoin and they all give Bitcoin subjective value.
I am not disputing the fact that Bitcoin has several uses. However, i strongly disagree that "there is no such thing as Intrinsic value"when it comes to Bitcoin.
Bitcoin has intrinsic value, i believe it is exactly that, which attracts individuals and cooperates organisation to purchase it.
My point exactly is that, in spite of the several uses of Bitcoin, the most dominating use is "Investing" or "Store of Value".
One major reason why most people purchase Bitcoin lately is not because they wish to transfer money over a long distance or use it as a medium of exchange. But rather, because they wish to hold the coin and wait for "green season" to sell it and make outrageous profits.
From this, i believe Bitcoin has uni-directionally been channeled to serve as an investment currency/coin, whose demand is solely contingent on investor/traders interest to purchase more coins to keep or sell coins at high prices to gain profits.
If Bitcoin is global perceived as a coin relevant for investment, i bet only rich individuals and cooperate organization will be the able to purchase/invest in it. The ordinary person can not / would not be able to purchase even one hundredth fraction of the coin to conduct basic transfer of money over a long distance etc....
Hypothesis 1: If the world fails to accept Bitcoin, chance are Bitcoin might be just as it is now or it will be run off by another coin that is universally accepted and effectively utilized.
what makes another altcoin accepted while bitcoin isn't?!!!newsflash, if bitcoin fails to be used altcoins don't have anything on bitcoin to be used in its stead. they will fail sooner and faster than bitcoin if your hypothesis is right.
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Hypothesis 2: If the world accepts Bitcoin and fails to use it for it actual purpose, chances are Bitcoin's will lose its intrinsic value and might turn out to be of those useless and dead coins in the crypto market.
bitcoin is being adopted around the world and is already being used as a currency and the usage is growing day by day. since so far we have conquered enough i'd say this Hypothesis is not going to happen.in any case i am all for making people understand that bitcoin is a currency, has always been and will always be. using words like "store of value" mostly started last year when fees went up and they need to go away.
Nah.
Technology doesn't need to be universally adopted to keep having users, and it also doesn't need to be perfect and beat all competitors. Linux in installed on 1.6% of desktop platforms, does it mean that it is dead or dying on said platform?
There's no such thing as intrinsic value, and Bitcoin isn't just store of value or just currency, it has many uses and people around the world are using it according their needs. Preserving value, investing, hedging, medium of exchange, long distance transfers, shadow economy and so on - there are many uses for Bitcoin and they all give Bitcoin subjective value.
Bitcoin can't simply fail like some experimental technologies do, because it has already been successfully launched and worked without any major flaws, so doomsday scenarios are very limited and at this point seems quite unlikely.
Technology doesn't need to be universally adopted to keep having users, and it also doesn't need to be perfect and beat all competitors. Linux in installed on 1.6% of desktop platforms, does it mean that it is dead or dying on said platform?
There's no such thing as intrinsic value, and Bitcoin isn't just store of value or just currency, it has many uses and people around the world are using it according their needs. Preserving value, investing, hedging, medium of exchange, long distance transfers, shadow economy and so on - there are many uses for Bitcoin and they all give Bitcoin subjective value.
Bitcoin can't simply fail like some experimental technologies do, because it has already been successfully launched and worked without any major flaws, so doomsday scenarios are very limited and at this point seems quite unlikely.
In opinion, Bitcoin future is contingent on its Universal Adoptability and Utilization.
Hypothetical assumptions
Hypothesis 1: If the world fails to accept Bitcoin, chance are Bitcoin might be just as it is now or it will be run off by another coin that is universally accepted and effectively utilized.
Hypothesis 2: If the world accepts Bitcoin and fails to use it for it actual purpose, chances are Bitcoin's will lose its intrinsic value and might turn out to be of those useless and dead coins in the crypto market.
Either way Bitcoin future might be in jeopardy.
To secure the Bitcoins future and its intrinsic value, i believe our efforts should be geared towards global adoptability and utilization of the digital currency. Efficient Utilization of Bitcoin will mean that we understand the difference between Bitcoin as currency and Bitcoin as a store of value.
These two are the basic ways that Bitcoin can be used. But then it appear one is overrunning the functionality of the other.
In the sense that people are aggressively focused on Bitcoin as a Store of value than Bitcoin as a currency that offers the most efficient means of transferring money over the internet via a decentralized network with a transparent set of rules.
When the world views Bitcoin largely as a store of value, its important functionality as a currency may lose it essence. As such, Bitcoin may appear to be "Scam".
And with "scam", the world obviously dislike anything that appears to be "Scam". Hence global adoptability will become quite impossible. And when global adoptability becomes impossible, hypothesis 1 is strongly confirmed.
Hypothesis 2 is strongly confirmed if variable (Bitcoin as a store of value) in Hypothesis 1 persist regardless universal adoptability.
The consequence is Bitcoin might lose its intrinsic value. Hence the future of Bitcoin might be in great Jeopardy.
To avoid these, I believe the decision to secure Bitcoins future and its intrinsic value is ours to make.
If Bitcoin Bitcoin continues to be treated as store of value than as a currency necessary for transferring money over the internet. The cycle of praying for Bitcoin price to fall so that we buy and Bitcoin price to rise so that we sell, will obviously promote price Volatility of Bitcoin and many undesirable outcomes.
Hypothetical assumptions
Hypothesis 1: If the world fails to accept Bitcoin, chance are Bitcoin might be just as it is now or it will be run off by another coin that is universally accepted and effectively utilized.
Hypothesis 2: If the world accepts Bitcoin and fails to use it for it actual purpose, chances are Bitcoin's will lose its intrinsic value and might turn out to be of those useless and dead coins in the crypto market.
Either way Bitcoin future might be in jeopardy.
To secure the Bitcoins future and its intrinsic value, i believe our efforts should be geared towards global adoptability and utilization of the digital currency. Efficient Utilization of Bitcoin will mean that we understand the difference between Bitcoin as currency and Bitcoin as a store of value.
These two are the basic ways that Bitcoin can be used. But then it appear one is overrunning the functionality of the other.
In the sense that people are aggressively focused on Bitcoin as a Store of value than Bitcoin as a currency that offers the most efficient means of transferring money over the internet via a decentralized network with a transparent set of rules.
When the world views Bitcoin largely as a store of value, its important functionality as a currency may lose it essence. As such, Bitcoin may appear to be "Scam".
And with "scam", the world obviously dislike anything that appears to be "Scam". Hence global adoptability will become quite impossible. And when global adoptability becomes impossible, hypothesis 1 is strongly confirmed.
Hypothesis 2 is strongly confirmed if variable (Bitcoin as a store of value) in Hypothesis 1 persist regardless universal adoptability.
The consequence is Bitcoin might lose its intrinsic value. Hence the future of Bitcoin might be in great Jeopardy.
To avoid these, I believe the decision to secure Bitcoins future and its intrinsic value is ours to make.
If Bitcoin Bitcoin continues to be treated as store of value than as a currency necessary for transferring money over the internet. The cycle of praying for Bitcoin price to fall so that we buy and Bitcoin price to rise so that we sell, will obviously promote price Volatility of Bitcoin and many undesirable outcomes.
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