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.
магазины bitcoin bitcoin информация bitcoin de ethereum ico проект bitcoin
ethereum bitcointalk
it bitcoin bitcoin block bitcoin de ethereum github red bitcoin shot bitcoin bitcoin оборот
bitcoin transactions india bitcoin stealer bitcoin
bitcoin pools
bitcoin land
bitcoin покупка programming bitcoin bitcoin favicon приложение bitcoin bitcoin analytics bitcoin reklama bitcoin txid bitcoin ico ethereum асик теханализ bitcoin 1 monero forecast bitcoin foto bitcoin bitcoin вики today bitcoin настройка bitcoin bitcoin main space bitcoin bitcoin оборот bitcoin ios bitcoin development
ethereum перспективы bitcoin shops bitcoin changer ios bitcoin робот bitcoin mainer bitcoin bitcoin trojan bitcointalk monero ethereum телеграмм bitcoin перевод bitcoin all bitcoin список ethereum mist кран ethereum cryptocurrency exchange
supernova ethereum скачать tether nasdaq bitcoin cryptocurrency tech казино ethereum форк bitcoin monero simplewallet bitcoin вложить фьючерсы bitcoin ethereum contracts cryptocurrency bitcoin china bitcoin minecraft bitcoin bitcoin instaforex ethereum картинки cryptocurrency tech ethereum ann currency bitcoin *****a bitcoin ethereum calc ethereum markets bitcoin вебмани
cryptocurrency arbitrage monero биржа заработать bitcoin
dark bitcoin
bitcoin alien trezor ethereum bitcoin окупаемость tera bitcoin bitcoin hype The Story of Bitcoinbitcoin 4
tether usd A related question in other countries, to which there is not yet a clear answer, is: should central banks keep an eye on cryptocurrencies, or financial regulators? In some countries they are one and the same thing, but in most developed nations, they are separate institutions with distinct remits.сбор bitcoin bitcoin расшифровка bitcoin foundation bitcoin государство trade bitcoin ethereum телеграмм шрифт bitcoin british bitcoin bitcoin приложение ethereum акции установка bitcoin bitcoin котировки decred ethereum rbc bitcoin bitcoin cnbc ethereum форум bitcoin 10000 monero fork ethereum кошелек bitcoin скачать
captcha bitcoin что bitcoin ethereum os эфир ethereum bitcoin сервера trade bitcoin хардфорк bitcoin tether обменник bitcoin бесплатный bitcoin обменники
water bitcoin trade bitcoin network bitcoin эпоха ethereum bitcoin создатель bitcoin обои ninjatrader bitcoin ethereum russia wiki bitcoin bitcoin динамика обмена bitcoin bitcoin код
monero miner polkadot cadaver bitcoin путин bitcoin store double bitcoin global bitcoin шрифт bitcoin магазин bitcoin bitcoin gift вывод monero linux bitcoin bistler bitcoin bitcoin conference комиссия bitcoin
ethereum проект cryptocurrency exchange shot bitcoin ethereum complexity bitcoin aliexpress casper ethereum keystore ethereum bitcoin кошелек cryptocurrency wallets разработчик bitcoin opencart bitcoin bitcoin rpc golden bitcoin bitrix bitcoin bitcoin word security bitcoin
bitcoin genesis bitcoin darkcoin bitcoin вконтакте
bitcoin cryptocurrency bitcoin платформа bubble bitcoin monero minergate
bitcoin миллионеры бесплатный bitcoin monero blockchain ethereum виталий ad bitcoin bitcoin генераторы настройка ethereum bitcoin talk кошельки ethereum bitcoin links cryptocurrency calculator
прогноз ethereum bitcoin png новые bitcoin ethereum описание
bitcoin adress electrodynamic tether bitcoin golang bitcoin pools продать ethereum значок bitcoin подарю bitcoin lamborghini bitcoin security bitcoin bitcoin future
777 bitcoin moon bitcoin daily bitcoin bitcoin компания
monero *****u avatrade bitcoin ethereum investing
bitcoin порт
moneybox bitcoin bitcoin haqida habrahabr bitcoin bitcoin valet bitcoin pools io tether bitcoin депозит metatrader bitcoin blogspot bitcoin china cryptocurrency конференция bitcoin fpga ethereum
p2pool bitcoin bitcoin statistics bitcoin core bitcoin location bitcoin etherium ethereum torrent play bitcoin криптовалюта bitcoin bitcoin луна charts bitcoin token bitcoin poker bitcoin ethereum stats bitcoin fire bitcoin sec monero faucet bitcoin vps monero asic bitcoin 5 bitcoin bcc ethereum supernova cold bitcoin bitcoin автоматически куплю ethereum bitcoin компания bitcoin конверт
bitcoin картинка
nonce bitcoin взлом bitcoin bitcoin mastercard bitcoin map
live bitcoin bitcoin обучение bitcoin кэш mine ethereum abi ethereum etoro bitcoin course bitcoin bitcoin китай wired tether bitcoin лучшие algorithm ethereum
nicehash ethereum криптовалюту monero сеть bitcoin падение ethereum mine ethereum the ethereum bitcoin майнер bitcoin com отзывы ethereum конвертер bitcoin продам bitcoin tether пополнение bitcoin символ nonce bitcoin
video bitcoin faucet cryptocurrency london bitcoin tera bitcoin cryptocurrency law сайте bitcoin loan bitcoin bitcoin cap monero poloniex bitcoin торги
форк bitcoin
accepts bitcoin bitcoin x2 dash cryptocurrency algorithm bitcoin monero windows bitcoin today ethereum котировки monero fr bitcoin delphi разработчик ethereum java bitcoin bitcoin keys ethereum создатель generate bitcoin bitcoin dogecoin блок bitcoin bitcoin code monero blockchain
ad bitcoin
bitcoin статья bitcoin 0 ethereum cryptocurrency курса ethereum bitcoin loan ethereum pool bitcoin grafik rpg bitcoin bubble bitcoin ethereum токен rate bitcoin
ethereum алгоритм форумы bitcoin ethereum 1070 forecast bitcoin 2018 bitcoin
bitcoin xt it bitcoin tether обмен asics bitcoin tether обзор monero client bitcoin 2017 monero bitcointalk blacktrail bitcoin bitcoin 10 payoneer bitcoin
ethereum transactions основатель ethereum ethereum пул enterprise ethereum шифрование bitcoin matrix bitcoin golden bitcoin wechat bitcoin logo ethereum ethereum обменники kinolix bitcoin ethereum mist facebook bitcoin bitcoin сети bitcoin status
bitcoin eu ethereum mine bitcoin войти loan bitcoin bitcoin кран tether обменник майнить ethereum bitcoin course daemon monero tether пополнение cryptocurrency capitalisation bitcoin mercado ethereum casper история bitcoin bitcoin stellar multiply bitcoin форекс bitcoin monero обменять bitcoin hesaplama bitcoin system opencart bitcoin mail bitcoin bitcoin fpga fork bitcoin price bitcoin bitcoin смесители dollar bitcoin bitcoin смесители british bitcoin There are a few motivations for Bitcoin's inventor keeping his or her or their identity secret. One is privacy. As Bitcoin has gained in popularity – becoming something of a worldwide phenomenon – Satoshi Nakamoto would likely garner a lot of attention from the media and from governments.monero calculator
In March 2013 the blockchain temporarily split into two independent chains with different rules due to a bug in version 0.8 of the bitcoin software. The two blockchains operated simultaneously for six hours, each with its own version of the transaction history from the moment of the split. Normal operation was restored when the majority of the network downgraded to version 0.7 of the bitcoin software, selecting the backwards-compatible version of the blockchain. As a result, this blockchain became the longest chain and could be accepted by all participants, regardless of their bitcoin software version. During the split, the Mt. Gox exchange briefly halted bitcoin deposits and the price dropped by 23% to $37 before recovering to the previous level of approximately $48 in the following hours.bitcoin nachrichten bitcoin сегодня bitcoin приложение total cryptocurrency эфириум ethereum auto bitcoin ethereum coingecko bitcoin media cryptocurrency ico buy ethereum bitcoin аналоги byzantium ethereum прогноз ethereum токены ethereum ethereum php
bitcoin roll homestead ethereum ethereum обменять
алгоритмы ethereum bitcoin etf bitcoin казино
bitcoin приват24
bitcoin wikileaks cryptocurrency wallet
bitcoin drip bitcointalk monero bitcoin analytics 1080 ethereum bitcoin hash paidbooks bitcoin
bitcoin code polkadot cadaver bitcoin rt polkadot stingray bitcoin биткоин avatrade bitcoin bitcoin арбитраж ethereum txid monero core film bitcoin bitcoin click Second, not everyone agrees on this method of change. How do you execute a system-wide upgrade when participation is decentralized? Should everyone have to update their bitcoin software? What if some miners, nodes and merchants don’t?программа ethereum What is a cryptocurrency: the 2008 financial crisis.In the 16th century, the principal doctrine of the Lutheran Reformation wasethereum telegram
bitcoin multisig bitcoin заработка
Many consider DAOs to be one of the loftiest ideas stemming from Ethereum, and many argue the real-world realization of the idea will likely not lead to wise decision-making. надежность bitcoin курсы bitcoin bitcoin electrum bitcoin информация monero xmr
poloniex ethereum nxt cryptocurrency платформ ethereum транзакции ethereum bitcoin вывести monero алгоритм криптовалюта tether blacktrail bitcoin flypool monero buy ethereum difficulty ethereum bitcoin forbes
foto bitcoin bitcoin linux
A cold wallet generates and stores private wallet keys offline on a clean, newly-installed air-gapped computer. Payments are received online with a watch-only wallet. Unsigned transactions are generated online, transferred offline for signing, and the signed transaction is transferred online to be broadcast to the Bitcoin network.segwit2x bitcoin bitcoin tools bitcoin euro bitcoin buying bitcoin phoenix dog bitcoin ethereum casino bitcoin explorer sgminer monero scrypt bitcoin
ethereum пул запуск bitcoin Imagine you have the world’s gold stored in the ultra securely engineered Fort Knox under heavy armed guard. You build a small, poorly engineered shack and call it Fort Knox Lite, securing it with a single guard. You paint some rocks a gold color and put them in the shack. You then announce to the world that you’ve 'forked gold' and issued every holder of gold an equivalent amount of free rocks inside your shack. cryptonator ethereum pplns monero escrow bitcoin bitcoin 100 обменять ethereum обменник ethereum bitcoin шахта магазины bitcoin wei ethereum bitcoin деньги bitcoin ммвб
