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.
bitcoin database
bitcoin суть
кран ethereum convert bitcoin sun bitcoin bitcoin symbol ethereum википедия ethereum pool keys bitcoin сложность ethereum stellar cryptocurrency bitcoin обучение forecast bitcoin bitcoin payza free ethereum monero hashrate список bitcoin
adc bitcoin bitcoin network ethereum обменять казино bitcoin форумы bitcoin
tracker bitcoin ethereum токены tether io tether provisioning bitcoin 3d комиссия bitcoin вход bitcoin microsoft ethereum тинькофф bitcoin tether chvrches Zero was liberation discovered deep in meditation, a remnant of truth found in close proximity to nirvana — a place where one encounters universal, unbounded, and infinite awareness: God’s kingdom within us. To buddhists, zero was a whisper from the universe, from dharma, from God (words always fail us in the domain of divinity). Paradoxically, zero would ultimately shatter the institution which built its power structure by monopolizing access to God. In finding footing in the void, mankind uncovered the deepest, soundest substrate on which to build modern society: zero would prove to be a critical piece of infrastructure that led to the interconnection of the world via telecommunications, which ushered in the gold standard and the digital age (Bitcoin’s two key inceptors) many years later.For an overview of cryptocurrency, start with Money is no object from 2015. We explore the early days of bitcoin and provide survey data on consumer familiarity, usage, and more. We also look at how market participants, such as investors, technology providers, and financial institutions, will be affected as the market matures.By ADAM BARONEnodes bitcoin cryptocurrency gold что bitcoin
капитализация bitcoin bitcoin 9000 arbitrage cryptocurrency bitcoin ваучер bitcoin trader bitcoin биржи bitcoin land кости bitcoin ethereum валюта store bitcoin bitcoin матрица miningpoolhub monero bitcoin pizza
difficulty ethereum fee bitcoin
zcash bitcoin bitcoin wallet bitcoin руб подтверждение bitcoin
monero rigname ethereum second bitcoin tor bitcoin
monero график bitcoin обучение bitcoin 2x bitcoin skrill Within one country, at least, a government could prohibit individuals and businesses from openly accepting Bitcoins (and if this happened in the US, it’d be the ultimate sign that the Supreme Court had fully abandoned its proper responsibilities). Suppose the US Government did ban the acceptance of Bitcoin: it would mean Bitcoin could only be accepted in secret. This would harm the economy significantly, but wouldn’t come close to stopping Bitcoin (and indeed, unless every government did this, Bitcoins could be openly accepted in other countries leading to capital flight which would pressure governments not to outlaw it in the first place).bitcoin data bitcoin email алгоритм monero bitcoin пузырь bitcoin auction bitcoin spinner secp256k1 bitcoin
bitcoin fund робот bitcoin ebay bitcoin
ethereum получить bitcoin services top bitcoin abc bitcoin ethereum farm bitcoin обменник bitcoin аналоги amazon bitcoin
bitcoin путин usdt tether bitcoin аккаунт flash bitcoin bitcoin iq doge bitcoin технология bitcoin bitcoin pools
часы bitcoin putin bitcoin bitcoin bank bitcoin вход карты bitcoin bitcoin символ bitcoin работа краны monero продать ethereum value bitcoin ethereum cryptocurrency ethereum обвал майнинг bitcoin monero кран the ethereum tether комиссии dwarfpool monero технология bitcoin обменник tether ethereum калькулятор bitcoin инструкция прогнозы bitcoin ethereum habrahabr bot bitcoin bitcoin миллионеры talk bitcoin tether приложения bitcoin блок best bitcoin cryptocurrency market course bitcoin bitcoin protocol bitcoin knots avto bitcoin dwarfpool monero bitcoin scripting сокращение bitcoin обмен monero bitcointalk ethereum ethereum microsoft bitcoin avalon How does it work?Satoshi Nakamoto's development of Bitcoin in 2009 has often been hailed as a radical development in money and currency, being the first example of a digital asset which simultaneously has no backing or intrinsic value and no centralized issuer or controller. However, another - arguably more important - part of the Bitcoin experiment is the underlying blockchain technology as a tool of distributed consensus, and attention is rapidly starting to shift to this other aspect of Bitcoin. Commonly cited alternative applications of blockchain technology include using on-blockchain digital assets to represent custom currencies and financial instruments (colored coins), the ownership of an underlying physical device (smart property), non-fungible assets such as domain names (Namecoin), as well as more complex applications involving having digital assets being directly controlled by a piece of code implementing arbitrary rules (smart contracts) or even blockchain-based decentralized autonomous organizations (DAOs). What Ethereum intends to provide is a blockchain with a built-in fully fledged Turing-complete programming language that can be used to create 'contracts' that can be used to encode arbitrary state transition functions, allowing users to create any of the systems described above, as well as many others that we have not yet imagined, simply by writing up the logic in a few lines of code.7. It is not repudiablebitcoin example
dark bitcoin homestead ethereum r bitcoin bitcoin purchase вики bitcoin разделение ethereum bitcoin 2x bitcoin оборот компиляция bitcoin bitcoin кошелька bitcoin easy bitcoin motherboard ethereum котировки программа bitcoin In August 2013, the German Finance Ministry characterized bitcoin as a unit of account, usable in multilateral clearing circles and subject to capital gains tax if held less than one year.ethereum видеокарты Cryptocurrencies are usually not issued or controlled by any government or other central authority. They’re managed by peer-to-peer networks of computers running free, open-source software. Generally, anyone who wants to participate is able to.net bitcoin kinolix bitcoin bitcoin daily bitcoin greenaddress ethereum russia bitcoin rt bitcoin ether bitcoin капча
mine monero ann bitcoin bitcoin favicon tether верификация bitcoin sha256 работа bitcoin github ethereum xronos cryptocurrency ethereum настройка bitcoin rate exchanges bitcoin
ethereum вывод space bitcoin продам bitcoin collector bitcoin ethereum metropolis lite bitcoin
генераторы bitcoin investment bitcoin ethereum pow bitcoin экспресс ethereum serpent bot bitcoin amazon bitcoin the ethereum ecdsa bitcoin
ethereum chart neteller bitcoin bitcoin настройка ethereum настройка bitcoin андроид ethereum перспективы the ethereum pplns monero
ethereum gas ethereum сбербанк
cryptocurrency market миллионер bitcoin
bitcoin moneypolo ethereum перспективы bitcoin goldmine bitcoin card bitcoin loto eos cryptocurrency solo bitcoin bitcoin prosto ethereum telegram scrypt bitcoin bitcoin fund bitcoin qt торрент bitcoin bitcoin pizza bitcoin валюты panda bitcoin arbitrage cryptocurrency rigname ethereum ninjatrader bitcoin bitcoin joker
oil bitcoin bitcoin перспективы алгоритмы ethereum bitcoin nvidia банк bitcoin фри bitcoin bitcoin окупаемость free monero bitcoin rotator bear bitcoin капитализация bitcoin
nanopool monero ethereum farm Cryptocurrencies are merely a product of blockchain technology, and live or die by the faith investors put in them. To use a metaphor, blockchain can be described as the operating system and bitcoin or bitcoin cash is the application that sits on top of it. data bitcoin bitcoin bitcointalk fee bitcoin ethereum метрополис bitcoin значок coindesk bitcoin cryptocurrency dash matrix bitcoin bitcoin planet
токен ethereum bitcoin бот trust bitcoin foto bitcoin gemini bitcoin валюта tether > November, it became widely known that toxic assets were toxic.rate bitcoin bitcoin ishlash
Create an accountfilm bitcoin
