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 эмиссия
взлом bitcoin
bitcoin блок bitcoin signals bitcoin king 1000 bitcoin
cryptocurrency wallets delphi bitcoin habrahabr bitcoin кошелька ethereum lealana bitcoin bcc bitcoin bitcoin nachrichten agario bitcoin андроид bitcoin erc20 ethereum bitcoin home обменники bitcoin ethereum покупка bitcoin it новости bitcoin Paper wallet: A paper wallet is bitcoins that are stored on good ole fashioned paper. You write down your public key and private key (or 12 word seed) on paper, check it over and over again to make sure it is correct (letter case matters). The idea behind paper wallets is if the private key is never connected to the internet it is much less vulnerable to thieves. Paperпроверка bitcoin оплатить bitcoin рулетка bitcoin переводчик bitcoin bitcoin it ротатор bitcoin криптовалюта ethereum bitcoin new капитализация bitcoin ethereum конвертер roulette bitcoin bitcoin упал adbc bitcoin ethereum заработать mine ethereum bitcoin crypto Several reports of employees or students using university or research computers to mine bitcoins have been published.bitcoin lion форумы bitcoin make bitcoin bitcoin donate график bitcoin
bitcoin автосборщик bitcoin life token bitcoin apk tether
bitcoin development
биржа bitcoin ethereum pools ethereum сбербанк
добыча monero
bitcoin token claim bitcoin bitcoin халява bitcoin сбербанк bitcoin биржи bitcoin лопнет bitcoin rub серфинг bitcoin проверка bitcoin blake bitcoin bitcoin википедия
bitcoin теханализ bitcoin терминалы today bitcoin инвестирование bitcoin bitcoin source получить bitcoin ethereum 1070 ethereum bonus bitcoin 123 ethereum валюта eos cryptocurrency ethereum transactions 1080 ethereum bitcoin валюты исходники bitcoin mining ethereum порт bitcoin monero logo lealana bitcoin yota tether бесплатные bitcoin free monero bitcoin ключи cryptocurrency calendar ethereum обменять java bitcoin ethereum chaindata currency bitcoin bitcoin tm java bitcoin nicehash monero ethereum dag bitcoin cny exchange ethereum p2pool bitcoin бесплатно bitcoin биржа monero r bitcoin bitcoin auto casino bitcoin
майнер bitcoin bitcoin капитализация 'Some things benefit from shocks; they thrive and grow when exposed to volatility, randomness, disorder, and stressors and love adventure, risk, and uncertainty. Yet, in spite of the ubiquity of the phenomenon, there is no word for the exact opposite of fragile. Let us call it antifragile. Antifragility is beyond resilience or robustness. The resilient resists shocks and stays the same; the antifragile gets better. This property is behind everything that has changed with time: evolution, culture, ideas, revolutions, political systems, technological innovation, cultural and economic success, corporate survival, good recipes (say, chicken soup or steak tartare with a drop of cognac), the rise of cities, cultures, legal systems, equatorial forests, bacterial resistance … even our own existence as a species on this planet. And antifragility determines the boundary between what is living and organic (or complex), say, the human body, and what is inert, say, a physical object like the stapler on your desk. The antifragile loves randomness and uncertainty, which also means—crucially—a love of errors, a certain class of errors.' – Nassim Taleb, Antifragilebitcoin мониторинг
ethereum проект кошель bitcoin bitcoin развитие
bitcoin bot bitcoin spend
trezor ethereum bitcoin hardfork пример bitcoin l bitcoin 60 bitcoin bitcoin кликер bitcoin сбор monero fr bit bitcoin neo cryptocurrency bitcoin qt bitcoin комиссия shot bitcoin bitcoin tx avatrade bitcoin приват24 bitcoin bitcoin перспектива bitcoin gpu alpha bitcoin And frequency of new transactionsbitcoin lite bitcoin traffic форки ethereum market bitcoin андроид bitcoin cryptocurrency charts
bitcoin capital fields bitcoin Lightning Network is a micropayment solution based on the Bitcoin protocol. It aims to enable near-instant and low-cost payments between merchants and customers that use Bitcoin.Specifically, Lightning Network aims to enable near-instant and low-cost payments between merchants and customers that wish to use bitcoins.Lightning Network was conceptualized in a whitepaper by Joseph Poon and Thaddeus Dryja in 2015. Since then, it has been implemented by multiple companies. The most prominent of them include Blockstream, Lightning Labs, and ACINQ.For a list of curated resources relevant to Lightning Network, please visit this link.In the Lightning Network, if a customer wishes to transact with a merchant, both of them need to open a payment channel, which operates off the Bitcoin blockchain (i.e., off-chain vs. on-chain). None of the transaction details from this payment channel are recorded on the blockchain. Hence, only when the channel is closed will the end result of both party’s wallet balances be updated to the blockchain. The blockchain only serves as a settlement layer for Lightning transactions.Since all transactions done via the payment channel are conducted independently of the Nakamoto consensus, both parties involved in transactions do not need to wait for network confirmation on transactions. Instead, transacting parties would pay transaction fees to Bitcoin miners only when they decide to close the channel.autobot bitcoin bitcoin node monero *****uminer bitcoin monkey
bitcoin окупаемость bitcoin пожертвование bitcoin golden bitcoin это
bitcointalk monero coins bitcoin
bitcoin multiplier bitcoin мошенничество monero майнинг wechat bitcoin bitcoin зарабатывать ethereum 1070 coindesk bitcoin monero free reddit bitcoin bitcoin millionaire ethereum сегодня my ethereum сервисы bitcoin bitcoin зарегистрировать bitcoin local bitcoin transaction bitcoin pdf бесплатный bitcoin bitcoin forbes parity ethereum bitcointalk ethereum Ether can be traded using Contracts for Difference (CFDs). The benefits of trading Ether CFDs over purchasing the underlying asset outright, is that you can gain leveraged exposure to the currency without being responsible for managing the underlying asset. Trades can be rapidly executed without needing to bring the underlying asset to an open market and send it to another crypto wallet. In addition, CFDs offer the option of going long or short on this popular crypto currency. While there are benefits to trading Ether CFDs, cryptocurrencies are extremely volatile and come with their own risks.If we define a bubble asset as one that is overvalued relative to intrinsic value, then we canwas an early adopter with reportedly over 90K in Bitcoin under managementbitcoin мастернода Groups of smart contracts are used to create dapps. Smart contracts are scripts of code which can facilitate the exchange of money, shares, content, or anything of value. Smart contracts are formed using the Ethereum Virtual Machine (EVM). Once a smart contract is running on the blockchain, it acts like a self-operating computer program. They run as programmed, without censorship, downtime or influence from a third party.The peer-to-peer network structure in cryptocurrency is structured according to the consensus mechanism that they are utilizing. For cryptocurrency like Bitcoin and Ethereum which uses a normal proof-of-work consensus mechanism (Ethereum will eventually move on to Proof of Stake), all the nodes have the same privilege. The idea is to create an egalitarian network. The nodes are not given any special privileges, however, their functions and degree of participation may differ. There is no centralized server/entity, nor is there any hierarchy. It is a flat topology.bitcoin reserve linux bitcoin bitcoin список book bitcoin график ethereum bitcoin take bitcoin hype bitcoin nodes таблица bitcoin
tether wallet *****a bitcoin bitcoin bonus bitcoin motherboard check bitcoin bitcoin conveyor bitcoin okpay monster bitcoin multibit bitcoin bitcoin добыть
Crowdfunding initiatives like Kickstarter and Gofundme are doing the advance work for the emerging peer-to-peer economy. The popularity of these sites suggests people want to have a direct say in product development. Blockchains take this interest to the next level, potentially creating crowd-sourced venture capital funds.пополнить bitcoin Ethereum protocol changesjax bitcoin clockworkmod tether monero amd ethereum txid sportsbook bitcoin linux bitcoin bitcoin презентация tether download adbc bitcoin работа bitcoin видео bitcoin bitcoin сервисы bitcoin сколько платформа bitcoin расширение bitcoin bitcoin redex bitcoin портал water bitcoin ethereum алгоритм phoenix bitcoin How to Mine Bitcoin: The Complete Guideexcel bitcoin korbit bitcoin кошелек tether bitcoin putin bitcoin шахты запрет bitcoin программа tether cryptocurrency wallet card bitcoin сервера bitcoin email bitcoin tails bitcoin cryptocurrency capitalization рубли bitcoin bitcoin nvidia keystore ethereum bitcoin оборот magic bitcoin mac bitcoin moto bitcoin bitcoin оборот bitcoin презентация
money bitcoin msigna bitcoin invest bitcoin monero обменять trade cryptocurrency bitcoin q bitcoin ютуб
bitcoin strategy 6000 bitcoin bitcoin конец обменник bitcoin ccminer monero bitcoin вклады хардфорк monero fox bitcoin bitcoin work bitcoin расшифровка
plus500 bitcoin котировки ethereum lightning bitcoin ethereum токены bitcoin bio bitcoin rt
ethereum википедия monero ann bitcoin hourly ethereum контракт bitcoin chart importprivkey bitcoin tether майнинг client ethereum ethereum сбербанк ethereum twitter bitcoin рубль bitcoin scam monero хардфорк ethereum parity sha256 bitcoin bitcoin video bitcoin compromised bitcoin iso monero *****u captcha bitcoin bitcoin xpub ферма ethereum Forks occur when the software of different miners become misaligned. It’s up to miners to decide which blockchain to continue using. If there isn’t a unanimous decision, then this can result in the creation of two versions of the blockchain. There can be periods of increased price volatility around such events. bitcoin payment bitcoin адрес forum cryptocurrency mt4 bitcoin bitcoin торговать bitcoin сбербанк монета ethereum bitcoin реклама китай bitcoin bitcoin golden bitcoin genesis
bitcoin miner captcha bitcoin flappy bitcoin electrum bitcoin field bitcoin forbot bitcoin tether обменник coinmarketcap bitcoin
tether plugin polkadot stingray будущее ethereum bitcoin prominer ethereum проблемы платформа bitcoin cran bitcoin bitcoin kran 1 ethereum
транзакция bitcoin bitcoin knots
minecraft bitcoin system bitcoin bitcoin course bitcoin транзакция шифрование bitcoin bitcoin cli ethereum описание
bitcoin allstars Many people prefer precious metals to cryptocurrencies when it comes to alternative investments.ethereum habrahabr coinbase ethereum Smart contractskey bitcoin The block contains the transaction along with similar types of transactions that have occurred. In the case of bitcoin transactions, the recent transactions are for the previous 10 minutes. Intervals vary depending on the specific blockchain and its configuration.bitcoin gold Using context to understand why hackers set out to build digital currency systems.Timestamping schemeProof-of-workbitcoin metatrader microsoft bitcoin Ready? Here’s what is blockchain in simple words:проекта ethereum tether android ethereum cryptocurrency bitcoin mempool 4000 bitcoin
токен ethereum разработчик bitcoin bitcoin background bitcoin ютуб калькулятор bitcoin bcc bitcoin bitcoin microsoft bitcoin server all bitcoin 'Anyone choosing to speculate in a copy of bitcoin is making the irrational decision to voluntarily opt-in to a less liquid, less secure monetary network.'bitcoin nodes bitcoin пицца bitcoin зебра
ethereum gas развод bitcoin config bitcoin project ethereum tether gps
cryptonight monero магазин bitcoin вклады bitcoin bitcoin таблица bitcoin etf
bitcoin рублях ethereum erc20 okpay bitcoin история ethereum
