Topic: Would crypto gain full intrinsic value? - page 4. (Read 571 times)

Is that a good thing? Because, at some point, I somehow feel like it is (@: price irregularities). In our kind of field, where no one does the promotions and publicity for bitcoin most especially, it is left for the various exchange to use this as, a means to some awareness and promotions on the site.

Though, I don't think exchange rates even for fiat is the same across all institutions. Its always going to be relative and its relativism counts for something. Bitcoin or cryptos can't be left out although in the later future, there would be a need to some way of standardisation in the price.

It might require long time before we see it happen. Trading crypto based on its value and there's no pair and backing up its value with fiat is likely to be decided by the whole community.

But to look at that matter, most of the things that's being traded in the world are requiring its back up with a fiat value. That's why you'll never know when that day would come that you'll trade most of them without the need to look at its fiat value.

It's kind of complicated scenario to calculate the price of products based on the bitcoin or any cryptocurrency itself as standard value and this maybe possible only when this whole world adopted cryptocurrency as the payment mode.

But the value of anything comes from its demand and supply so nothing in this world has stable value all the time so we no need to complicate the valuation just let it be as of now.

But we can hope for that still. People that we see in the government do not decide everything by themselves. They have counselors and advisors, and those people can be young and open-minded, not to mention that some older folks can be open-minded too. I believe that within the next 10 years or so, BTC will become a widely accepted currency. The probability of that happening gets higher with people losing their trust in local fiat currencies, which is happening nowadays.

Complaining how we still aren't using BTC as a denominator when buying/selling stuff is just ehh. It's a pretty unrealistic expectation knowing how accustomed people are into using their local fiat currencies(especially the USD); and also knowing that bitcoin is just more than a decade old. It's going to take time.

In my view, the very concept of "intrinsic value" is highly controversial since it can always be argued that if there are no people to accrue a value to a particular thing, that thing automatically becomes useless. It immediately follows that if the value of whatever kind is always determined by men, it is therefore always subjective, not objective.

Generally, for a monetary commodity to be considered to have intrinsic value, it needs to possess additional, non-monetary, but still decent, characteristics that allow the said commodity to be used outside the monetary scope. Evidently, Bitcoin doesn't have additional use cases other than being used as money, and therefore it is not intrinsically valuable.

Centralized currencies actually fluctuate and lose value over time. One of the best ways to observe this is to pair it with Bitcoin(or some goods/services) long-term, before you know it your fiat money has lost value but the reverse is the case when you hold Bitcoin and pair with fiat.

The high volatility is occasional with Bitcoin. You probably won't notice that if you hold long term and don't pair with fiat currencies.
If Bitcoin has its own thriving and independent economy, we will have the right opportunity to trade goods and services with each other in decentralized peer-to-peer manner.  I have looked at centralized trading and concluded that it's not a good idea. It's not going to be sustainable and will likely make Bitcoin price erratic or usable due to censorship, centralization etc. We need a more sustainable way to trade safely with less likelihood of lawlessly getting stopped, censored or ban . Not a good idea to compete with the system at all unless you are ready to be subjected to it and that could also mean centralization of a cryptocurrency.

Wonder what you mean by instrinsic value, if you think fiat has it, I can gurantee you that Bitcoin has it too even better. We could also have Bitcoin backed by more physical assets too, if that's what you want

Most crypto does not have anything you could call intrinsic value. Bitcoin does not have an "intrinsic value" because it does not produce cash flows and does not stand for a right for a product or service. As for others, I agree with the OP that most tokens and chains are far to ahead in time of the value they represent. eg. Ethereum value is the ability to execute distributed anti-tapering code. How much is that worth?

The intrinsic value of a substance makes it price to fluctuates. If people demand more of bitcoin, the intrinsic value will increase. If fiat is devalued, provide bitcoin price is stable (which is not possible), then the price of bitcoin compared to that fiat will increase. All has been about intrinsic value.

You do not have to deal with anything, just hold bitcoin, bitcoin price can decrease but it will increase over long term, you have nothing to worry about.

The superiority of bitcoin is in the inferiority of fiats to its intrinsic value. Also if governments all over the world accept bitcoin, they are not still ready to give up on their fiat, that is not possible just like you meant in your later post content.

The only thing for this to happen is when governments accept it as a legal tender over Fiat currencies. If there are no Fiat currencies, people cannot use the value of fiat currencies as a price determination for the value of an item. 

Will this happen in our life time? Answer : Probably not... Fiat currencies still have a strong hold on the older generation and they are the ones that are not open-minded enough to allow for a digital currency to replace fiat currencies. (Just look at the age of the people in government now)     Joe Biden = 78 years

I still don't understand what do people mean,when they say "intrinsic value"?
The value/price of Bitcoin is determined by supply and demand,plus the costs of mining.
The intrinsic value of Bitcoin is supposed to be the cost of mining one BTC.The supply and demand factor determines the price of one BTC.
The intrinsic value of BTC has nothing to do with the price of BTC being measured in dollars or euro.
The price volatility of Bitcoin will never change.If you hate price volatility and fluctuation,then just use stablecoins or some not-so-volatile cryptocurrency like ethereum or ripple.
Bitcoin/crypto will never be adopted as a "global legal tender" and that's OK.

I think so. What we don't know is how long. I think things are going to continue to be measured in dollars or euros for a long time, and the scenario where the goods and services you can purchase become measured in Bitcoin and the other assets/currencies only in comparison to Bitcoin has a long time to go.

Unless the market is not accessible already then perhaps people may just try buying BTC from merchants they know who owns BTC and buy. The sellers can dictate thier own intrinsic price for which is going to be higher than the market price. I don't that will happen now as anyone can actually go to p2p and make a transaction. 
Fluctuation of price is solved by the stablecoins, you'd be forced to deal with on your own. Stalbecoin how we do it for years already.

The solution is simply just time. If you think the cryptocurrency space will slowly but surely increase in adoption, then we can assume that market liquidity will increase with time as well; hence lower price volatility.

The lack of acceptance mostly isn't due to the volatility, but simply because of the lack of demand. Merchants don't need to care about the volatility because services such as BitPay/BTCPay allows the merchants to automatically convert the BTC to fiat at the time they receive the payment.

This will be dealt with in the same ways other legal tenders are. There are derivatives of gold or gold itself is accepted as legal tender in some countries and these have to deal with balancing price fluctuations too. I think an important thing to remember though, bitcoin is not going to be an omnifunctional asset, it'll see competitors and I doubt countries will give up their original currency in favour of bitcoin (since the ones who print it are paid quite well to do so).

With the high level of volatility and constant fluctuation in market capitalization on crypto currencies would there ever come a time we would trade crypto based on the value it has in it's self and not in exchange for fiat currency. Many countries has now adopted crypto as mode of payment but we are still faced with the issues of price irregularities. If we decide to adopt crypto fully as a global legal tender how do we deal with this price fluctuation.

This is the edge fiat and centralized currencies have over crypto and this has made so many shy away from doing legal business transaction using some crypto most especially during bear market. Can this issue get a remedy?