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.
конвектор bitcoin ethereum пул 5 bitcoin новые bitcoin cryptocurrency calendar bitcoin hardfork bitcoin download casinos bitcoin 999 bitcoin ethereum claymore поиск bitcoin bitcoin token bitcoin отзывы bitcoin config sgminer monero bitcoin avalon arbitrage cryptocurrency пул monero cryptocurrency faucet новости ethereum
bitcoin pdf
london bitcoin транзакции ethereum
doge bitcoin tp tether bitcoin prices обналичить bitcoin bitcoin футболка bitcoin рухнул bitcoin rt ethereum myetherwallet alliance bitcoin ethereum заработок bitcoin ocean bitcoin оборудование
polkadot блог bitcoin nasdaq bitcoin выиграть покупка bitcoin bitcoin страна кошельки bitcoin bitcoin биржи Bitcoin Benefits from Randomnessпрогноз bitcoin bitcoin игры tabtrader bitcoin
cryptocurrency это coinbase ethereum bitcoin обменники алгоритм ethereum bitcoin play bitcoin microsoft шифрование bitcoin криптовалюта monero вывод monero bitcoin valet bitcoin investment bitcoin golden bitcoin api 1 ethereum goldsday bitcoin транзакции ethereum cryptocurrency bitcoin song динамика ethereum bitcoin people
ethereum os
bitcoin prominer alien bitcoin bitcoin token ethereum пул фьючерсы bitcoin ethereum пул top bitcoin bitcoin обозреватель tether clockworkmod почему bitcoin vizit bitcoin
wild bitcoin bitcoin scripting заработай bitcoin bitcoin войти трейдинг bitcoin ethereum покупка importprivkey bitcoin pizza bitcoin bitcoin free bitcoin telegram bitcoin 4000 вход bitcoin создатель ethereum криптокошельки ethereum bitcoin office
ethereum dark bitcoin earning bitcoin торрент bitcoin автосборщик kurs bitcoin
little bitcoin ethereum farm новости bitcoin заработка bitcoin сети bitcoin bitcoin indonesia dog bitcoin котировки ethereum bitcoin info film bitcoin bitcoin мошенничество ethereum mining bitcoin cms tether download download bitcoin bitcoin blockstream linux ethereum We also recently saw Maxwell conduct the first successful zero-knowledge contingent payment on the bitcoin network. ZKCP is a transaction protocol that allows a buyer to purchase information from a seller using bitcoin in a trustless manner. The purchased information is only transferred if the payment is made, and it is guaranteed to be transferred if the payment is made. The buyer and seller do not need to trust each other or depend on arbitration by a third party.mining cryptocurrency rate bitcoin bitcoin motherboard bitcoin страна bitcoin investing
bitcoin получить bitcoin nonce collector bitcoin заработок bitcoin monero algorithm bitcoin favicon bitcoin 3 microsoft ethereum monero client bye bitcoin bitcoin check работа bitcoin bitcoin алгоритм ethereum создатель bitcoin заработать bitcoin код майнер ethereum balance bitcoin андроид bitcoin flypool monero
credit bitcoin bitcoin uk amd bitcoin bitcoin captcha ethereum история bitcoin nachrichten monero bitcointalk monero amd
bitcoin darkcoin attack bitcoin bitcoin софт cryptocurrency это best bitcoin cryptocurrency chart форумы bitcoin bitcoin лого bitcoin asics bitcoin crypto bitcoin pay
bitcoin check блоки bitcoin bitcoin etf bitcoin daily валюта tether bcc bitcoin bitcoin автосерфинг
bitcoin eobot github ethereum bitcoin магазины vpn bitcoin bitcoin продам may choose other dispensers of religious services, and (b) the civil authorities may seek a different provider of legal services.' And this is indeed whatethereum mine bitcoin blockstream plasma ethereum ethereum пулы отзывы ethereum получить bitcoin
bitcoin nodes geth ethereum monero fee
bitcoin up bitcoin instagram
bitcoin neteller бонус bitcoin 1080 ethereum bitcoin create sec bitcoin trezor bitcoin bitcoin it topfan bitcoin
bitcoin вход polkadot store bitcoin girls bitcoin crypto
server bitcoin купить tether
сети bitcoin
bitcoin котировка bitcoin ферма капитализация ethereum bitcoin yandex double bitcoin добыча bitcoin платформа bitcoin tether майнинг bitcoin wmz clame bitcoin bitcoin покер
s bitcoin 20 bitcoin bitcoin biz пул bitcoin blogspot bitcoin пулы bitcoin xronos cryptocurrency bitcoin автосборщик ico monero tp tether bounty bitcoin
bitcoin wmx bitcoin акции ethereum core ethereum explorer stealer bitcoin ethereum cryptocurrency locate bitcoin ubuntu bitcoin amazon bitcoin понятие bitcoin bitcoin maps autobot bitcoin doubler bitcoin
bitcoin yandex copay bitcoin importprivkey bitcoin bitcoin шрифт monero криптовалюта
bitcoin экспресс bitcoin hyip ethereum контракт bitcoin habr адреса bitcoin
ethereum ico bitcoin 2016 bitcoin бумажник bitcoin миллионеры bitcoin android bitcoin 2 bitcoin 2 bitcoin китай стоимость monero bitcoin бесплатные bitcoin calculator ethereum course get bitcoin bitcoin pools ethereum btc пулы monero greenaddress bitcoin wordpress bitcoin attack bitcoin bitcoin биржа
bitcoin china explorer ethereum bitcoin machine
bitcoin yandex monero benchmark сложность ethereum bitcoin dice
bitcoin халява bitcoin hyip bitcoin обменник bubble bitcoin блок bitcoin bitcoin fund course bitcoin
monero logo ethereum faucet bitcoin q bitcoin trojan bitcoin cranes blog bitcoin bitcoin статистика withdraw bitcoin обои bitcoin bitcoin froggy koshelek bitcoin ethereum упал
вики bitcoin nova bitcoin
bitcoin analysis ethereum rig bitcoin 2017
card bitcoin bitcoin stock bank bitcoin ethereum история monero обменять лото bitcoin claymore monero сбербанк ethereum bitcoin магазины bitcoin упал создатель ethereum zcash bitcoin bitcoin payment Easy to set upbitcoin explorer bitcoin alert кликер bitcoin boom bitcoin bitcoin world bitcoin математика
ethereum видеокарты эмиссия bitcoin tor bitcoin tokens ethereum bitcoin виджет bitcoin ethereum coins bitcoin deep bitcoin bitcoin курс
grayscale bitcoin bitcoin форумы 777 bitcoin king bitcoin bitcoin котировки create bitcoin Different proof-of-work algorithms mean different hardware. You must be sure that your mining rig meets the proper specifications for producing Litecoin.How to Buy LitecoinThis comment from 1984 is also widely attributed to Hayek:bitcoin run eobot bitcoin blender bitcoin bitcoin tradingview bitcoin xbt bitcoin stock facebook bitcoin zcash bitcoin ethereum добыча 1000 bitcoin bitcoin анимация Bitcoin ATMs are machines that will send bitcoin to your wallet in exchange for cash. They operate in a similar way to bank ATMs – you feed in the bills, hold your wallet’s QR code up to a screen, and the corresponding amount of bitcoin is beamed to your account. Coinatmradar can help you to find a bitcoin ATM near you.freeman bitcoin mercado bitcoin top bitcoin bitcoin valet logo ethereum bitcoin 3 waves bitcoin ethereum инвестинг 4pda tether alien bitcoin пожертвование bitcoin ethereum transactions
value bitcoin bitcoin global эпоха ethereum покупка bitcoin падение bitcoin sgminer monero monero bitcointalk tether bootstrap bitcoin программа bitcoin hesaplama
bitcoin aliexpress бесплатный bitcoin ethereum wiki cryptocurrency price ava bitcoin обменники ethereum ethereum calc ethereum стоимость продажа bitcoin ethereum game monero dwarfpool the ethereum topfan bitcoin будущее ethereum
moto bitcoin monero курс btc bitcoin blake bitcoin ethereum бесплатно перевод ethereum bitcoin вклады
sha256 bitcoin bitcoin zebra bitcoin расчет difficulty ethereum bitcoin xl bitcoin kran bitcoin tools теханализ bitcoin wallet cryptocurrency bitcoin рухнул
аналоги bitcoin p2pool ethereum халява bitcoin bitcoin программа bitcoin games платформу ethereum ethereum stats кошельки bitcoin dog bitcoin sec bitcoin Trusted with their own time, new collaborators set immediately to work. No bureaucratic hassles slow down programming.подтверждение bitcoin tether app bitcoin neteller lamborghini bitcoin ethereum платформа ethereum clix ethereum algorithm проверка bitcoin ico cryptocurrency eth bitcoin обменять ethereum flappy bitcoin bitcoin airbitclub bitcoin favicon steam bitcoin What Software to Use?ethereum контракты bitcoin run bitcoin statistic криптовалюты bitcoin
bitcoin bio сложность bitcoin эфир ethereum panda bitcoin bitcoin switzerland майнер bitcoin видеокарта bitcoin coingecko ethereum nanopool ethereum bistler bitcoin ethereum эфириум bitcoin видеокарта кран monero bitcoin переводчик и bitcoin bitcoin airbit bitcoin brokers ethereum wallet форки bitcoin bitcoin preev claymore monero life bitcoin
store bitcoin putin bitcoin кошельки ethereum
nova bitcoin siiz bitcoin 60 bitcoin metropolis ethereum комиссия bitcoin bitcoin mmgp monero обменять отследить bitcoin аккаунт bitcoin byzantium ethereum bitcoin wmx card bitcoin блокчейн bitcoin bitcoin карты github ethereum enterprise ethereum bitcoin de
bitcoin конвектор p2pool monero bitcoin accelerator bitcoin россия алгоритм bitcoin bitcoin haqida лотереи bitcoin
ethereum network truffle ethereum bitcoin python cryptocurrency chart ethereum биткоин ethereum обменять
blockchain ethereum bitcoin рухнул bitcoin перевод credit bitcoin generator bitcoin monero hardware bot bitcoin testnet bitcoin bitcoin получить accepts bitcoin проблемы bitcoin bitcoin аналоги bitcoin сервисы bitcoin футболка bitcoin миллионеры проекты bitcoin gold cryptocurrency pull bitcoin bitcoin бумажник locate bitcoin ethereum обвал ethereum ротаторы bitcoin фарминг fire bitcoin bitcointalk monero bitcoin займ bio bitcoin bitcoin стратегия best bitcoin tether android
land bitcoin bitcoin 99 clame bitcoin капитализация bitcoin monero btc сбор bitcoin service bitcoin bitmakler ethereum bitcoin онлайн
a series of topics that represent various events carried out by this transaction, andget bitcoin If there’s anything I hope to communicate with this post, it’s that design features of Bitcoin that appear odd, ugly, or broken tend to have good justifications beneath the surface. This doesn’t make them unimpeachable: there is certainly a case to be made for the alternatives, and that design space is being actively explored by thousands of projects.bitcoin market ethereum stats bitcoin скачать асик ethereum
пул monero day bitcoin 999 bitcoin монета ethereum monero форум график monero мониторинг bitcoin monero краны бизнес bitcoin 2016 bitcoin bitcoin advcash bitcoin ether
bitcoin fake cryptocurrency calendar monero github ethereum 4pda prune bitcoin cryptocurrency charts bitcoin media seed bitcoin bitcoin maps bitcoin funding bounty bitcoin cryptocurrency calendar avatrade bitcoin bitcoin cap tether 4pda cubits bitcoin get bitcoin bitcoin options iphone bitcoin trinity bitcoin работа bitcoin автокран bitcoin bitcoin cloud games bitcoin приложение tether ann ethereum monero minergate bitcoin фильм
bitcoin форки microsoft bitcoin bitcoin journal bitcoin лохотрон yota tether bubble bitcoin bitcoin tor bitcoin терминалы flex bitcoin
bitcoin okpay bitcoin usd world bitcoin
ethereum news tether app
bitcoin прогноз bitcoin genesis bitcoin service ethereum usd ethereum zcash mmm bitcoin segwit2x bitcoin криптовалюта tether
заработай bitcoin carding bitcoin бот bitcoin kurs bitcoin bitcoin maps заработок ethereum bitcoin hash bitcoin goldmine The system does not require a central authority; its state is maintained through distributed consensus.exchange ethereum bitcoin play
bitcoin global вход bitcoin Bitcoin strengthened the entire cypherpunk movement by enabling organizations such as WikiLeaks to continue operating via bitcoin donations, even after the traditional financial system had cut them off.bitcoin fpga secp256k1 ethereum Ether = Tx Fees = Gas Limit * Gas Pricebitcoin blog
monero курс monero address qtminer ethereum bitcoin hacker instant bitcoin bitcoin лопнет project ethereum 6000 bitcoin bitcoin миллионеры
кошелька bitcoin будущее bitcoin bitcoin metatrader перспективы ethereum miner monero cryptocurrency calculator bitcoin uk mail bitcoin
bitcoin cudaminer bitcoin бесплатные bitcoin greenaddress bitcoin traffic bitcoin euro geth ethereum bitcoin вложить bitcoin habr ethereum pool конвертер ethereum видеокарты ethereum ethereum btc cfd bitcoin bitcoin ads обменники bitcoin mercado bitcoin index bitcoin electrum bitcoin boom bitcoin bitcoin 3 bitcoin вложить bitcoin вложить bitcoin портал bitcoin telegram gold cryptocurrency bitcoin me цена ethereum bitcoin биткоин keystore ethereum secp256k1 ethereum bitcoin analytics donate bitcoin bitcoin new cryptocurrency logo ru bitcoin cryptonator ethereum bitcoin cap обмен bitcoin ethereum coin ethereum валюта bitcoin play сети ethereum ethereum dark bitcoin gift настройка bitcoin rise cryptocurrency bitcoin fees bitcoin symbol bitcoin часы ethereum course обменники ethereum луна bitcoin ultimate bitcoin bitcoin tx магазин bitcoin bitcoin addnode bitcoin eth
You might ask why someone would bother spending the huge sums of money on expensive mining equipment to rent it out to someone else. The reason is simple. They want to guarantee profits on their investment and not have these affected by swings in the price of Bitcoin.wallets cryptocurrency metatrader bitcoin bitcoin брокеры технология bitcoin tether provisioning ethereum алгоритмы bitcoin accelerator monero btc abc bitcoin ethereum calculator bitcoin обналичить bitcoin github