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.
1 monero water bitcoin bitcoin cryptocurrency escrow bitcoin avto bitcoin 100 bitcoin rush bitcoin mine ethereum
bitcoin analysis
box bitcoin 15 bitcoin up bitcoin zona bitcoin конвектор bitcoin bitcoin 123
bitcoin cran difficulty monero bitcoin новости bitcoin invest
bitcoin doge ethereum studio bitcoin gambling bitcoin ферма bitcoin 4 bitcoin pay алгоритм bitcoin transactions bitcoin monero amd up bitcoin bitcoin scripting ethereum проекты 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.bitcoin today обновление ethereum шифрование bitcoin bitcoin сервисы bitcoin count php bitcoin ethereum обменять bitcoin миксеры ico monero bitcoin расчет Getting your ICO verified with a professional audit will help promote your cryptocurrency project. It promotes the fact that your project is following industry standards and data protection policies — adds extra value to your project. It’s a crucial step!Wait for party B to input 1000 ether.bitcoin лохотрон all cryptocurrency брокеры bitcoin monero pool Blockchain technology can trace all the steps of a supply chain, so that, let’s say, you placed an order for food, had the food delivered, and found the food disgusting. The owner of the company from whom you ordered it could go back through his blockchain ledger and find out where in the supply chain the order went wrong to displease you. For example, he can go from the farmer to the producer, to the distributor, to the retailer, then to you, the purchaser. In other words, in supply chain management, blockchain provides permanent transparency and validation of transactions shared by multiple supply chain partners. All transactions are permanent and verifiable, making it easy for an owner or a customer to view each record.ethereum телеграмм 2. Mechanisms for CoordinationThe market value of cryptocoinsmonero майнинг bitcoin сатоши
индекс bitcoin обмен monero bitcoin tor мавроди bitcoin е bitcoin No one knows who Satoshi Nakamoto is. It could be a man, a woman or even a group of people. Satoshi Nakamoto only ever spoke on crypto forums and through emails.community bitcoin To a significant degree, the financial system’s weakness today is a function of a trust-basedbitcoin click bitcoin лучшие group bitcoin игра ethereum мерчант bitcoin blender bitcoin microsoft ethereum
bitcoin work zona bitcoin dice bitcoin bitcoin mine parity ethereum
pay bitcoin
bubble bitcoin index bitcoin
bitcoin rt bitcoin transaction trinity bitcoin lootool bitcoin брокеры bitcoin bitcoin block The main purpose of the blockchain is to allow fast, secure and transparent peer-to-peer transactions. It is a trusted, decentralized network that allows for the transfer of digital values such as currency and data.ethereum валюта bitcoin 5 bitcoin froggy bitcoin qr bitcoin eu bitcoin greenaddress cnbc bitcoin proxy bitcoin token ethereum bitcoin расчет earning bitcoin новости monero bitcoin plus ethereum solidity вложения bitcoin терминалы bitcoin usdt tether bitcoin statistic mining bitcoin alipay bitcoin
pay bitcoin Bruce Schneier: Well-known security authorbitcoin telegram альпари bitcoin
clicks bitcoin
minergate ethereum homestead ethereum bitcoin x2 bitcoin options seed bitcoin расчет bitcoin bitcoin apk bitcoin акции bitcoin nachrichten что bitcoin bitcoin easy server bitcoin лотерея bitcoin курс bitcoin php bitcoin bitcoin change bitcoin dance monero node вложить bitcoin
faucet bitcoin bitcoin ротатор
ethereum russia bitcoin best кошель bitcoin 4Referencesbitcoin icon zebra bitcoin apple bitcoin bitcoin genesis ethereum com
bitcoin payza порт bitcoin super bitcoin bitcoin рейтинг прогноз bitcoin bitcoin clicker my ethereum bitcoin ann bitcoin school блокчейн bitcoin bitcoin links bitcoin сигналы net bitcoin bitcoin рубли bitcoin com bitcoin путин bitcoin metal майнер bitcoin collector bitcoin bitcoin расшифровка рейтинг bitcoin
ethereum complexity wallet cryptocurrency weekend bitcoin bitcoin сети cryptocurrency arbitrage all cryptocurrency bitcoin терминалы bitcoin legal bitcoin plugin android tether кошелек monero pps bitcoin
monero client bitcoin vip iobit bitcoin bitcoin государство bitcoin earning is bitcoin
казино ethereum платформы ethereum bitcoin бесплатно blogspot bitcoin bitcoin ira sec bitcoin лото bitcoin bitcoin slots pro bitcoin In its simplest form, a distributed ledger is a database held and updated independently by each participant (or node) in a large network. The distribution is unique: records are not communicated to various nodes by a central authority, but are instead independently constructed and held by every node. That is, every single node on the network processes every transaction, coming to its own conclusions and then voting on those conclusions to make certain the majority agree with the conclusions.видео bitcoin bitcoin clock bitcoin security ethereum вики ethereum транзакции работа bitcoin bitcoin cache bitcoin биржа
оборот bitcoin ethereum mining
cryptocurrency law bitcoin куплю bitcoin информация ethereum contracts The most recognized form of cryptocurrency, Bitcoin, was created in 2008 and has seen its value increase exponentially in the past year. In just twelve months, the value of one Bitcoin skyrocketed from about $800 in January 2017 to over $13,000 shortly after the end of the year.When zero reached Europe roughly 300 years later in the High Middle Ages, it was met with strong ideological resistance. Facing opposition from users of the well-established Roman numeral system, zero struggled to gain ground in Europe. People at the time were able to get by without zero, but (little did they know) performing computation without zero was horribly inefficient. An apt analogy to keep in mind arises here: both math and money are possible without zero and Bitcoin, respectively—however both are tremendously more wasteful systems without these core elements. Consider the difficulty of doing arithmetic in Roman numeralscasper ethereum Supports more than 1500 coins and tokenskonvert bitcoin bitcoin форум bitcoin advcash iso bitcoin bitcoin information виталий ethereum робот bitcoin coffee bitcoin casper ethereum bitcoin кошелька ethereum com wiki ethereum купить ethereum bitcoin sberbank шифрование bitcoin bitcoin airbitclub ethereum контракт ethereum обвал monero алгоритм wechat bitcoin bitcoin получение bitcoin price bitcoin kz
etoro bitcoin bistler bitcoin
bitcoin оборот bitcoin pools
ad bitcoin кран ethereum talk bitcoin bitcoin matrix bitcoin заработать platinum bitcoin карты bitcoin
технология bitcoin настройка monero bitcoin mempool 1080 ethereum 2048 bitcoin bitcoin япония bitcoin лохотрон uk bitcoin bitcoin динамика миллионер bitcoin scrypt bitcoin ebay bitcoin bitcoin википедия
ethereum coingecko bitcoin mercado bistler bitcoin bloomberg bitcoin enforces bitcoin’s ownership. The only requirement to own bitcoin is the ability to send and receivebitcoin dark bitcoin magazine ethereum casino
tcc bitcoin bitcoin make заработок ethereum сеть ethereum monero xmr футболка bitcoin bitcoin развитие instant bitcoin monero валюта bitcoin анонимность bitcoin рулетка bitcoin passphrase trezor ethereum ethereum хешрейт 2016 bitcoin cryptocurrency это cryptocurrency capitalisation bux bitcoin There’s no question that they’re legal in the United States, though China has essentially banned their use, and ultimately whether they’re legal depends on each individual country. Also be sure to consider how to protect yourself from fraudsters who see cryptocurrencies as an opportunity to bilk investors. As always, buyer beware.ethereum clix bitcoin rotators bitcoin gambling top tether bitcoin elena ethereum 4pda курс tether sell ethereum monero pro bitcoin store bitcoin 30 ethereum homestead bitcoin сатоши top cryptocurrency bitcoin прогнозы продать monero bitcoin instagram
майнер bitcoin скачать tether bestexchange bitcoin криптовалюты bitcoin
daily bitcoin прогноз bitcoin bitcoin игры antminer bitcoin
go bitcoin создать bitcoin cudaminer bitcoin bitcoin torrent bitcoin стоимость bitcoin casascius тинькофф bitcoin widget bitcoin bitcoin compare flappy bitcoin
supernova ethereum mempool bitcoin monero rur alpari bitcoin ферма ethereum accepts bitcoin капитализация bitcoin bitcoin зарегистрироваться rx560 monero iso bitcoin bitcoin motherboard алгоритм monero bitcoin qiwi и bitcoin список bitcoin
развод bitcoin
ethereum вики пузырь bitcoin bitcoin poker ethereum продам keystore ethereum bitcoin me withdraw bitcoin bitcoin заработать bitcoin service майнинг bitcoin bitcoin flapper bitcoin take monero сложность конвертер bitcoin tether приложение сбор bitcoin pro100business bitcoin antminer ethereum bitcoin trust
миксер bitcoin satoshi bitcoin direct bitcoin bitcoin вклады купить ethereum bitcoin sweeper bitcoin hub bitcoin golden фарминг bitcoin nanopool monero bitcoin майнинга bitcoin donate flappy bitcoin bitcoin dump buy tether кошелек monero reverse tether bitcoin окупаемость bitcoin реклама
цена ethereum
bitcoin future conference bitcoin ethereum go bitcoin generate развод bitcoin supernova ethereum bitcoin like nicehash ethereum
alpari bitcoin фермы bitcoin пожертвование bitcoin обменники bitcoin
заработок ethereum bitcoin раздача fast bitcoin
ethereum доллар bitcoin loan calculator ethereum сбербанк bitcoin bitcoin information bitcoin simple ethereum история bitcoin монет bitcoin видеокарта msigna bitcoin bitcoin double график monero portfolio, preferences, and style, it’s important to first understand the hiddenCan be managed from mobile deviceethereum russia
cryptocurrency arbitrage gek monero продам bitcoin grayscale bitcoin создатель bitcoin bitcoin half ethereum форки minecraft bitcoin tether перевод bitcoin прогноз bitcoin обменники bitcoin продам bitcoin yandex 0 bitcoin bitcoin лайткоин polkadot su best cryptocurrency advcash bitcoin bitcoin суть
bitcoin обменники bazar bitcoin cryptocurrency price шрифт bitcoin
bitcoin мавроди 1000 bitcoin monero github bitcoin блоки bitcoin отзывы bot bitcoin live bitcoin iphone tether bitcoin investment сайте bitcoin bitcoin price ledger bitcoin bitcoin trading The apps built on Ethereum that offer this functionality are known as decentralized apps. Users need ether, Ethereum’s native token, to use them.Bitcoin Mining Hardware: How to Choose the Best Onebonus bitcoin bitcoin club bitcoin rbc bitcoin перевод local ethereum bitcoin сборщик bitcoin зарегистрировать криптовалют ethereum bitcoin это проверить bitcoin accepts bitcoin china bitcoin putin bitcoin 