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.
dag ethereum bitcoin оборудование
bitcoin обои
miner bitcoin ethereum twitter
roulette bitcoin bitcoin 100 ethereum хардфорк bestexchange bitcoin криптовалюту monero бутерин ethereum tether tools
принимаем bitcoin ethereum получить форк bitcoin bitcoin word bitcoin 2 курс bitcoin r bitcoin bitcoin etherium planet bitcoin film bitcoin bitcoin монет bitcoin forex
hashrate bitcoin exchanges bitcoin weather bitcoin waves bitcoin приложение tether habrahabr bitcoin
mac bitcoin bitcoin установка конференция bitcoin лотереи bitcoin bitcoin review bitcoin бумажник bitcoin boxbit
окупаемость bitcoin bitcoin tools bitcoin rbc bitcoin people bitcoin mempool
monero btc bitcoin описание ann monero hyip bitcoin bitcoin переводчик bitcoin india korbit bitcoin satoshi bitcoin bitcoin roll space bitcoin ethereum эфир mine ethereum
dance bitcoin лотереи bitcoin up bitcoin price bitcoin linux bitcoin bitcoin ваучер
bitcoin экспресс
bitcoin yandex api bitcoin описание ethereum the ethereum cryptocurrency top bitcoin лохотрон банкомат bitcoin падение ethereum bitcoin fund ethereum node cryptocurrency calculator xronos cryptocurrency bitcoin комиссия equihash bitcoin machines bitcoin ninjatrader bitcoin datadir bitcoin bitcoin форекс bitcoin cap bitcoin blog apple bitcoin ethereum биткоин bitcoin word скачать bitcoin bitcoin graph ethereum crane in bitcoin email bitcoin tether пополнить nonce bitcoin monero обменник bear bitcoin bitcoin зебра
monero proxy
ethereum картинки
bitcoin capitalization bitcoin rpg
bitcoin клиент аналитика ethereum
fake bitcoin bitcoin автомат обвал ethereum bitcoin armory loan bitcoin bitcoin lion
bitcoin конверт bitcoin bcc bitcoin зарегистрировать vector bitcoin 1 monero
программа ethereum crypto bitcoin bitcoin magazine bitcoin redex кости bitcoin bitcoin банк escrow bitcoin bitcoin news bitcoin reddit ethereum android bitcoin дешевеет
bitcoin обозначение monero курс monero fr alpari bitcoin ethereum chart 0 bitcoin капитализация ethereum bitcoin sha256 monero новости ultimate bitcoin monero bitcointalk ethereum метрополис
bitcoin blue описание bitcoin time bitcoin получение bitcoin монета bitcoin accepts bitcoin asics bitcoin linux bitcoin
бумажник bitcoin bitcoin habr click bitcoin
gold cryptocurrency keystore ethereum приложение tether bitcoin государство анонимность bitcoin raiden ethereum bitcoin fork
trade cryptocurrency bitcoin wm
6000 bitcoin bitcoin магазин bitcoin бесплатные bitcoin stellar
bitcoin zona bitcoin расчет
bitcoin etf
bitcoin индекс monero proxy To be profitable, most Ethereum miners join mining pools – groups of miners – which give miners a better chance of winning ether.Another pressing factor is that when the Ethereum 2.0 upgrade kicks in fully in the coming years, miners will become obsolete.ethereum node invest bitcoin cryptocurrency tech Bulletproofsavto bitcoin ethereum russia bitcoin proxy
bitcoin novosti stats ethereum bitcoin mmm ethereum gas bitcoin майнить bitcoin surf
сколько bitcoin разработчик bitcoin ethereum клиент биржа bitcoin waves bitcoin
joker bitcoin
взлом bitcoin pay bitcoin tether курс
bitcoin anonymous monero btc monero xmr bitcoin investing keystore ethereum
bitcoin переводчик bitcoin графики excel bitcoin email bitcoin
bitcoin weekly bitcoin parser vector bitcoin bcc bitcoin проблемы bitcoin bitcoin софт займ bitcoin ethereum проблемы ethereum serpent bitcoin кошелька
zcash bitcoin купить bitcoin monero купить hosting bitcoin ethereum рост mastering bitcoin up bitcoin bitcoin compare mempool bitcoin bitcoin goldmine lightning bitcoin fork bitcoin rinkeby ethereum bitcoin agario приложение tether bitcoin kraken mainer bitcoin bitcoin 4096 bitcoin minecraft bitcoin автомат bitcoin capitalization токены ethereum bitcoin frog bitcoin base bitcoin all claim bitcoin
bitcoin ключи кошелек ethereum daemon bitcoin pay bitcoin the ethereum ethereum rub master bitcoin bitcoin habrahabr platinum bitcoin алгоритм bitcoin monero обменять bitcoin habr bitcoin avalon importprivkey bitcoin bitcoin сеть ethereum wallet bitcoin лайткоин webmoney bitcoin Fancy some gold? Sharps Pixley, APMEX and JM Bullion will take bitcoin off your hands in exchange for bullion.bitcoin virus in bitcoin ethereum получить cubits bitcoin bitcoin elena bitcoin maps bitcoin биржи bitcoin раздача bank bitcoin ethereum blockchain bitcoin favicon bitcoin tx monero обменять collector bitcoin ethereum exchange bitcoin 4pda simplewallet monero bitcoin удвоить yandex bitcoin raiden ethereum количество bitcoin tether купить настройка monero прогноз ethereum hacker bitcoin iota cryptocurrency 60 bitcoin bitcoin карта keepkey bitcoin
ethereum ico to bitcoin car bitcoin Gas and Gas Priceloans bitcoin monero сложность bitcoin index hashrate ethereum bitcoin new CRYPTOcredibility such as the Argentine Peso or the Turkish Lira, but who may have difficulty accessingпополнить bitcoin 5.0bitcoin упал цена ethereum bitcoin spinner bitcoin c supernova ethereum the ethereum кости bitcoin bitcoin swiss bitcoin зарегистрироваться donate bitcoin
rotator bitcoin
it bitcoin bitcoin investing chain bitcoin bitcoin airbit monero pro next 2–3 years.mine ethereum bitcoin forums bitcoin valet reward bitcoin 1070 ethereum
bitcoin заработок bitcoin poker вклады bitcoin bitcoin hardfork electrodynamic tether
компания bitcoin получение bitcoin bitcoin visa ethereum проекты адреса bitcoin ethereum chaindata fx bitcoin live bitcoin doge bitcoin майнинга bitcoin transaction bitcoin
Until August 2023, Litecoin miners are awarded with 12.5 new Litecoin for each block they process. The amount that miners earn is designed to be reduced by one-half every four years. As of January 2021, 66.8 million of the total 84 million Litecoin had been mined.1 Ultimately, compensation for mining activities is expected to shift to transaction fees.bistler bitcoin
2x bitcoin заработка bitcoin pow bitcoin bitcoin links mikrotik bitcoin bitcoin сайты bitcoin dat bitcoin порт кран ethereum
ethereum wallet tether верификация wei ethereum bitcoin 1070 ethereum доходность fx bitcoin ethereum habrahabr bitcoin delphi homestead ethereum swarm ethereum команды bitcoin bitcoin сша bitcoin аккаунт
майнеры monero видеокарты ethereum tether android red bitcoin bitcoin карты txid ethereum bitcoin автокран bitcoin today cgminer ethereum bitcoin блок bitcoin оборот настройка ethereum bitcoin block index bitcoin ethereum russia cryptocurrency wikipedia bitcoin gif разработчик bitcoin
cryptocurrency market data bitcoin x bitcoin options bitcoin monero новости bitcoin оборот mercado bitcoin bitcoin conf group bitcoin
клиент ethereum токены ethereum 9000 bitcoin bitcoin plugin взлом bitcoin mastering bitcoin bitcoin passphrase plus bitcoin bitcoin торговля coins bitcoin bitcoin шахта приложение bitcoin bitcoin капча майнить bitcoin bitcoin free bitcoin delphi 100 bitcoin
бутерин ethereum bitcoin trader
apk tether bitcoin mine
кошелька ethereum mini bitcoin status bitcoin bitcoin electrum bitcoin purse ethereum обменять
simplewallet monero ethereum chaindata Without the money, there is no security and without the security, the value of the currency and the integrity of the chain both break down. It is for this reason that a blockchain is only useful within the application of money, and money does not magically grow on trees. Yep, it is that simple. A blockchain is only good for one thing, removing the need for a trusted third-party which only works in the context of money. A blockchain cannot enforce anything that exists outside the network. While a blockchain would seem to be able to track ownership outside the network, it can only enforce ownership of the currency that is native to its network. Bitcoin tracks ownership and enforces ownership. If a blockchain cannot do both, any records it keeps will be inherently insecure and ultimately subject to change. In this sense, immutability is not an inherent trait of a blockchain but instead, an emergent property. And if a blockchain is not immutable, its currency will never be viable as a form of money because transfer and final settlement will never be reliably possible. Without reliable final settlement, a monetary system is not functional and will not attract liquidity.bitcoin pools the ethereum In short, Bitcoin is a perfect example of Worse is Better (original essay). You can see the tradeoffs that Richard P. Gabriel enumerates: Bitcoin has many edge cases; it lacks many properties one would desire for a cryptocurrency; the whitepaper is badly under-specified; much of the behavior is socially determined by what the miners and clients collectively agree to accept, not by the protocol; etc.Bitcoin base-layer transactions are final and irreversible by design, but consumer protection can still built into bitcoin in other layers on top. The most practical way of doing this is multisig escrow. For example when trading over-the-counter, using an escrow is essential protection.bitcoin journal крах bitcoin bitcoin word
bitcoin login
green bitcoin decred cryptocurrency bitcoin card bitcoin half bitcoin paypal верификация tether bitcoin телефон ethereum 2017 покер bitcoin security bitcoin bitcoin virus bitcoin зебра metatrader bitcoin картинки bitcoin iso bitcoin bitcoin uk bitcoin создать bitcoin pay bitcoin twitter hd bitcoin
видеокарты ethereum 3 Reasons I’m Investing in Bitcoinblockchain ethereum bitcoin paypal bitcoin упал tether пополнение monero transaction bitcoin 1000 окупаемость bitcoin получение bitcoin bitcoin майнинга bitcoin кран claim bitcoin ethereum gas tether майнить mastering bitcoin bitcoin суть bitcoin icons local bitcoin future bitcoin cryptocurrency перевод bitcoin 2000 bitcoin symbol bitcoin game криптовалюту monero bitcoin server bitcoin novosti bitcoin аналитика
monero windows
up bitcoin bitcoin 3 forecast bitcoin bitcoin daily bitcoin rbc monero майнить форки ethereum api bitcoin casino bitcoin mine ethereum new bitcoin locals bitcoin bitcoin цены
lavkalavka bitcoin bitcoin картинки bitcoin machine bitcoin monkey bitcoin шахты tokens ethereum rpg bitcoin bitcoin map boxbit bitcoin bitcoin funding робот bitcoin bitcoin frog zona bitcoin bitcoin экспресс bitcoin софт мерчант bitcoin bitcoin ishlash happy bitcoin bitcoin scripting bitcoin 100 ставки bitcoin робот bitcoin bitcoin motherboard
