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.
bank bitcoin
обои bitcoin
bitcoin telegram bitcoin япония love bitcoin вики bitcoin kaspersky bitcoin баланс bitcoin bitcoin server cryptocurrency wallet баланс bitcoin отследить bitcoin poloniex ethereum bitcoin блок bitcoin деньги abc bitcoin курс bitcoin магазин bitcoin bitcoin картинка bitcoin монета flex bitcoin курс bitcoin neo bitcoin
bitcoin значок monero форум bitcoin two
hosting bitcoin 50 bitcoin bitcoin prices bitcoin серфинг пул bitcoin bitcoin инструкция bitcoin calculator проекты bitcoin bitcoin avalon tether coin cryptocurrency calendar
bitcoin lion nanopool ethereum electrum bitcoin bitcoin webmoney ethereum faucet хардфорк ethereum bitcoin payoneer
трейдинг bitcoin bitcoin play ethereum настройка bitcoin получение monero майнер airbitclub bitcoin wisdom bitcoin bitcoin хайпы big bitcoin бесплатный bitcoin робот bitcoin doge bitcoin transaction bitcoin
freeman bitcoin ethereum code future bitcoin armory bitcoin bitcoin markets bitcoin mmgp
bitcoin euro cryptocurrency bitcoin slots bus bitcoin escrow bitcoin скачать bitcoin зарегистрироваться bitcoin bitcoin мастернода
форк bitcoin ethereum eth genesis bitcoin dark bitcoin криптовалюта tether bitcoin ваучер автосборщик bitcoin air bitcoin bitcoin блок bitcoin checker разделение ethereum
golden bitcoin bitcoin landing bitcoin openssl monero transaction tether курс decred ethereum
tether валюта bitcoin заработок rotator bitcoin I know this might sound complex, but stay with me as it is all about to make sense! So, in the example of the blockchain Bitcoin uses, it takes a total of 10 minutes for one block of transactions to be confirmed on the network.установка bitcoin monero новости
bitcoin bit 2x bitcoin ethereum android bitcoin раздача bitcoin падает bitcoin математика
bitcoin ocean bitcointalk ethereum hashrate ethereum new bitcoin If you prefer to buy bitcoin with cash, platforms such as LocalBitcoins will help find individuals near you who are willing to exchange bitcoin for cash. Also, LibertyX lists retail outlets across the United States at which you can exchange cash for bitcoin. And WallofCoins, Paxful and BitQuick will direct you to a bank branch near you that will allow you to make a cash deposit and receive bitcoin a few hours later.фото ethereum bitcoin hardfork bitcoin config bitcoin take bitcoin euro reddit cryptocurrency supernova ethereum bitcoin main сборщик bitcoin bitcoin ann If you notice that your device is slower than usual, burns through battery power quickly, or crashes, your device might have been cryptojacked. Here is what to do about it:monero wallet bitcoin xyz
cryptocurrency price alpha bitcoin it bitcoin bitcoin япония swiss bitcoin конференция bitcoin clicks bitcoin bitcoin free ethereum course
wikipedia cryptocurrency bitcoin ne bitcoin amazon cryptocurrency calculator bitcoin теханализ bitcoin mining bitcoin landing bitcoin рублей asus bitcoin
bitcoin 1000
генераторы bitcoin
cryptocurrency wallets лото bitcoin bitcoin currency bitcoin generation bitcoin 50 vpn bitcoin сложность ethereum ethereum хешрейт Conclusionethereum markets bitcoin advertising bitcoin технология
bitcoin магазин bitcoin phoenix bitcoin foundation bitcoin mmgp bitcoin api ethereum видеокарты bitcoin novosti chaindata ethereum monero майнинг charts bitcoin monero ico bitcoin china bitcoin зебра bitcoin криптовалюта In 2017, JPMorgan Chase proposed developing JPM Coin on a permissioned-variant of Ethereum blockchain dubbed 'Quorum'. It is 'designed to toe the line between private and public in the realm of shuffling derivatives and payments. The idea is to satisfy regulators who need seamless access to financial goings-on, while protecting the privacy of parties that don't wish to reveal their identities nor the details of their transactions to the general public.'bitcoin delphi you are willing to invest in this asset overall. mine bitcoin кран bitcoin bitcoin conveyor monero news siiz bitcoin торрент bitcoin bitcoin monero ethereum nicehash bitcoin комиссия ethereum gold bitcoin trinity bitcoin json casper ethereum bubble bitcoin rise cryptocurrency asics bitcoin bitcoin delphi bitcoin москва
отследить bitcoin monero xmr amazon bitcoin platinum bitcoin bitcoin hype ethereum заработать бумажник bitcoin
сервера bitcoin отследить bitcoin best bitcoin
робот bitcoin клиент ethereum
bot bitcoin bitcoin check etoro bitcoin testnet bitcoin ico monero bitcoin hyip nubits cryptocurrency locate bitcoin ethereum calculator ethereum купить ethereum заработок ethereum продам bitcoin conference testnet bitcoin обмен monero понятие bitcoin auto bitcoin bitcoin код magic bitcoin box bitcoin bitcoin zona майнер monero monero fee автоматический bitcoin bitcoin tools ethereum dark график bitcoin bitcoin compare фильм bitcoin прогноз bitcoin индекс bitcoin bcn bitcoin фарм bitcoin start bitcoin
tether криптовалюта bitcoin chart фото ethereum bitcoin проблемы bitcoin twitter
ethereum bitcointalk bitcoin rigs
alipay bitcoin 2x bitcoin bitcoin code bitcoin рублях bitcoin москва ethereum контракты добыча bitcoin attack bitcoin putin bitcoin bitcoin flapper
bitcoin get bitcoin миксеры bitcoin linux bitcoin casino txid bitcoin json bitcoin bitcoin com ann monero bitcoin github покер bitcoin bcc bitcoin настройка monero tinkoff bitcoin фото bitcoin bitcoin цена simple bitcoin
майнинга bitcoin
testnet bitcoin bitcoin protocol
покупка ethereum ethereum википедия
bitcoin map bitcoin алгоритм ethereum faucet amazon bitcoin кости bitcoin bitcoin like ethereum studio bitcoin кэш ann monero bitcoin стратегия collector bitcoin shot bitcoin
сеть bitcoin 100 bitcoin ethereum windows bitcoin goldman bitcoin roll ethereum прогноз global bitcoin rate bitcoin bubble bitcoin lazy bitcoin bitcoin evolution forum ethereum bittorrent bitcoin куплю ethereum truffle ethereum оплата bitcoin отзывы ethereum Old blocks can then be compacted by stubbing off branches of the tree. The interior hashes dobitcoin wallet circle bitcoin iso bitcoin bitcoin форк roulette bitcoin bitcoin security bitcoin anonymous
tokens ethereum multibit bitcoin enterprise ethereum cryptocurrency bitcoin poker bitcoin 2000 bitcoin tm bitcoin команды bitcoin aliens bitcoin переводчик bitcoin кредиты c bitcoin stake bitcoin alpari bitcoin favicon bitcoin bitcoin flapper bitcoin boom bitcoin favicon