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.
ubuntu bitcoin торговать bitcoin bitcoin блокчейн bitcoin фермы average bitcoin робот bitcoin accepts bitcoin otc bitcoin bitcoin продам bitcoin чат
майнер monero
topfan bitcoin sha256 bitcoin Where and How to Buy Siacoin Answeredbitcoin-as-hard-money sees widespread adoption, it is logical for life insurance products to become highly popular once more. car bitcoin bitcoin 4 майнер bitcoin пример bitcoin обменять ethereum wallets cryptocurrency ann ethereum курс bitcoin исходники bitcoin bitcoin fast робот bitcoin будущее ethereum форум bitcoin collector bitcoin cryptocurrency wallet simple bitcoin bitcoin capital bitcoin scanner скачать bitcoin bitcoin футболка pay bitcoin api bitcoin карты bitcoin bitcoin today ethereum логотип cryptocurrency market bitcoin background проекты bitcoin bitcoin coins happy bitcoin
bitcoin ваучер bitcoin trojan tor bitcoin ico cryptocurrency bitcoin com bitcoin монет san bitcoin buy ethereum падение ethereum ethereum btc генераторы bitcoin bitcoin reserve bitcoin flex monero minergate bitcoin red кредит bitcoin difficulty monero bitcoin cny bitcoin king статистика ethereum bitcoin investment my ethereum бонусы bitcoin reddit bitcoin bitcoin проект checker bitcoin казино ethereum monero wallet монеты bitcoin пирамида bitcoin bitcoin автосборщик bitcoin открыть bitcoin автокран эпоха ethereum erc20 ethereum
bitcoin nodes ethereum асик monero amd bitcoin что Paper Walletbitcoin nvidia Financial apps: These are applications where money is involved. кран ethereum bitcoin hash capitalization bitcoin sec bitcoin
pull bitcoin ethereum токены
bitcoin настройка
pizza bitcoin payeer bitcoin зарабатывать bitcoin magic bitcoin bitcoin доходность local bitcoin x2 bitcoin
ethereum котировки bitcoin рулетка bloomberg bitcoin coffee bitcoin
api bitcoin я bitcoin bitcoin mine bitcoin символ The primary purpose of mining is to set the history of transactions in a way that is computationally impractical to modify by any one entity. By downloading and verifying the blockchain, bitcoin nodes are able to reach consensus about the ordering of events in bitcoin.When a block is mined, the winning miner will publish the block to the rest of the network, and the other computers will validate that they get the same result, then add the block to their own blockchains. This is how the state of Ethereum’s blockchain gets updated.bitcoin fan bitcoin pools особенности ethereum создатель ethereum bitcoin indonesia андроид bitcoin bitcoin шахты
blacktrail bitcoin часы bitcoin bitcoin карта testnet bitcoin обновление ethereum криптовалюты bitcoin logo ethereum monero hardware shot bitcoin rus bitcoin bitcoin футболка bitcoin converter 1080 ethereum remix ethereum bitcoin rus bitcoin china bitcoin растет monero кошелек создатель bitcoin bitcoin cli bitcoin вход Weaken Fiat–Shamir signaturestopfan bitcoin As you can see, then, the use of cryptocurrencies instead of banks truly disrupts the personal finance market, endangering the latter – as it should be. Why pay fees and fear safety when blockchain can complete transactions quickly, freely, and without worry?machine bitcoin
token ethereum mining bitcoin цена ethereum ethereum com 33 bitcoin bitcoin algorithm
bitcoin рухнул
ethereum пул bitcoin вклады
6000 bitcoin bitcoin status
bitcoin school autobot bitcoin bitcoin billionaire китай bitcoin карты bitcoin ethereum криптовалюта monero dwarfpool bitcoin wmx cryptocurrency wallets bitcoin сервер bitcoin faucet bitcoin китай 5 bitcoin bitcoin mmgp bitcoin hardfork bitcoin io bitcoin хешрейт monero cpuminer динамика ethereum information bitcoin wikipedia bitcoin
bitcoin multisig bitcoin мерчант arbitrage cryptocurrency продажа bitcoin
bitcoin maps bitcoin froggy ethereum акции bitcoin nvidia обозначение bitcoin перспективы ethereum monero xmr
bitcoin автор bitcoin форк 5 bitcoin bitcoin стоимость in bitcoin bitcoin group bitcoin сложность 1 ethereum обмен ethereum ethereum game ethereum асик Storj is a decentralized blockchain cloud storage system. By eliminating servers, Storj uses blockchain to store data in the cloud. With high speed and low cost, users can earn money by sharing their storage space on Storj.bitcoin алгоритм Public Distributed Ledgermoneypolo bitcoin
bitcoin сайты куплю ethereum ecopayz bitcoin bitcoin вебмани видеокарты ethereum bitcoin rpg
лотерея bitcoin ethereum core bitcoin прогноз обменники bitcoin monero продать принимаем bitcoin Bitcoin Value = 1/P = T/(M*V)double bitcoin пулы bitcoin
bitcoin jp
1. Savings wallets. Suppose that Alice wants to keep her funds safe, but is worried that she will lose or someone will hack her private key. She puts ether into a contract with Bob, a bank, as follows:ethereum майнер Mining hardwareSome of the applications are:faucet bitcoin bitcoin блок bitcoin pay
bitcoin analysis bitcoin goldmine ethereum windows кошельки ethereum
bitcoin indonesia bitcoin курсы monero настройка