bootlace
Full Member
 Offline
Activity: 364
Merit: 100
Justice as a Service Infrastructure
|
 |
December 04, 2013, 08:24:08 PM |
|
Many people seem to miss the meaning of 'intrinsic'. Bitcoin, and almost anything that is digital doesn't hold 'intrinsic value'. Intrinsic essentially means does it have value besides the function it serves. An mp3 file is useful but it doesn't have intrinsic value. Google's search alogrithm has immense patented technological value but it does not have intrinsic value.
What does have intrinsic value? Gold has intrinsic value because besides serving as a store of wealth or currency or whatever it is a very rare, unique, and special material on our planet that is practically indestructible (resistant to oxidization and corrosion), is the most ductile and malleable of metals and has a 5000 year track record of being considered aesthetically pleasing to human beings. Many real world things have been used as money ranging from shells to paper today - those don't have intrinsic value either.
As for Bitcoin - it doesn't have intrinsic value. It does have technological value but since its not patented and is easily accessible and can be incrementally improved upon, not much value can be placed on that aspect of it. Bitcoin's main value right now is in its network effect. It is susceptible to lose this network effect if a better digital currency comes along (think Facebook replacing Myspace). Right now Bitcoin derives its value from the assumption that it will stay and progress as the dominant digital currency of the future - once it loses that projection it is essentially worthless. Simple as that.
|
