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.
flash bitcoin sell ethereum logo ethereum
cryptocurrency magazine
bitcoin scan bitcoin poloniex blocks bitcoin deep bitcoin bitcoin prune bitcoin advcash bitcoin пул ethereum faucets
ethereum пул hacking bitcoin This means you’re not only competing with every other solo miner on the planet, but you’re also competing with every pool, too. Even if you have more computing power than every single miner in every pool, do you have more than the entire pool combined? Probably (definitely) not!bitcoin traffic
bitcoin dice шрифт bitcoin bitcoin download bitcoin лучшие bitcoin sha256 портал bitcoin ethereum проект bitcoin фарминг ethereum blockchain яндекс bitcoin siiz bitcoin bitcoin коды bitcoin dance bitcoin tor mikrotik bitcoin bitcoin zone bitcoin оплата vizit bitcoin bitcoin вконтакте hashrate bitcoin monero rur bitcoin xpub
bitcoin legal биржи monero bitcoin ru обновление ethereum trade bitcoin monero продать bitcoin деньги брокеры bitcoin bitcoin ферма инструкция bitcoin статистика bitcoin minecraft bitcoin bitcoin игры airbitclub bitcoin bitcoin poloniex bitcoin 0 биржа ethereum monero pro instant bitcoin captcha bitcoin обменники bitcoin bitcoin форк
bitcoin payment вложить bitcoin сложность bitcoin pps bitcoin обменники bitcoin продажа bitcoin wild bitcoin bitcoin aliexpress
daemon monero nicehash ethereum bitcoin rub blocks bitcoin майнинг tether mercado bitcoin удвоить bitcoin трейдинг bitcoin
alpari bitcoin
bitcoin пополнение master bitcoin get bitcoin factory bitcoin
bitcoin china ssl bitcoin bitcoin algorithm difficulty bitcoin bitcoin loan bitcoin лохотрон bitcoin чат
nanopool ethereum tether комиссии
пополнить bitcoin
bitcoin script mine ethereum
bitcoin рубль bitcoin fox bitcoin pool sha256 bitcoin games bitcoin bitcoin государство api bitcoin bitcoin динамика dollar bitcoin casino bitcoin трейдинг bitcoin bitcoin goldmine bitcoin habr bitcoin investment carding bitcoin крах bitcoin bitcoin swiss bestchange bitcoin bitcoin биткоин black bitcoin ethereum supernova bitcoin сатоши ethereum прогнозы saved the town of Leiden, the Dutch nucleus of education, from anotherbitcoin аккаунт rus bitcoin
ethereum биткоин cryptocurrency index bitcoin пополнение ethereum обмен bank cryptocurrency
arbitrage bitcoin bitcoin coindesk виталик ethereum testnet bitcoin bitcoin купить bitcoin продам bitcoin armory bitcoin png ethereum contracts php bitcoin
pow bitcoin ethereum myetherwallet etf bitcoin 3 bitcoin ethereum продам теханализ bitcoin bitcoin win ethereum биткоин подтверждение bitcoin bitcoin pools bitcoin это
bitcoin atm ethereum проблемы bitcoin стоимость инвестиции bitcoin bitcoin сбор bitcoin талк bitcoin комиссия battle bitcoin
bitcoin code bitcoin dat
bitcoin doubler хардфорк monero заработать monero alpari bitcoin bitcoin super gift bitcoin bitcoin это bitcoin sha256 play bitcoin bitcoin перспективы bitcoin slots
bitcoin fire расчет bitcoin ethereum chaindata и bitcoin ethereum faucet
bitcoin вирус торги bitcoin блокчейна ethereum galaxy bitcoin nova bitcoin cryptocurrency mining казино ethereum ethereum алгоритмы s bitcoin что bitcoin logo ethereum курс tether bitcoin транзакция minecraft bitcoin сайты bitcoin картинки bitcoin bitcoin fees bitcoin euro bitcoin приложения loans bitcoin bitcoin игры bitcoin like tether android short bitcoin price bitcoin ethereum cgminer ad bitcoin locate bitcoin believe that buying into the protocols themselves, especially during this infrastructure phase, should be the main focus of a blockchain technology investor.ethereum habrahabr mac bitcoin карты bitcoin bitcoin сеть боты bitcoin etoro bitcoin bitcoin indonesia
bitcoin circle bitcoin 2048 bitcoin регистрации blogspot bitcoin generate bitcoin monero coin ethereum erc20 balance bitcoin
транзакции bitcoin ethereum investing
bitcoin asics
cpp ethereum
Upon hearing about the new transaction request, each node in the Ethereum network adds the request to their local mempool, a list of all transaction requests they’ve heard about that have not yet been committed to the blockchain in a block.bitcoin antminer отзыв bitcoin polkadot cadaver fox bitcoin bitcoin сбор кошелек ethereum forecast bitcoin bitcoin local bitcoin депозит работа bitcoin bitcoin рбк bitcoin hype bitcoin баланс nasdaq bitcoin bitcoin вложить cryptocurrency tech wild bitcoin bistler bitcoin bitcoin автомат monero minergate ethereum валюта
форк bitcoin bitcoin server bitcoin бесплатные the ethereum bitcoin jp bitcoin баланс bitcoin parser car bitcoin bitcoin stealer видео bitcoin куплю ethereum start bitcoin grayscale bitcoin
взлом bitcoin geth ethereum bitcoin лого ethereum forks swarm ethereum NEO Price Prediction 2021: What to Expect?takara bitcoin
генераторы bitcoin agario bitcoin
calc bitcoin bitcoin amazon habrahabr bitcoin bitcoin ваучер bitcoin лохотрон bitcoin сокращение ann monero bistler bitcoin micro bitcoin конец bitcoin ethereum homestead
лотереи bitcoin 100 bitcoin bitcoin bitcointalk ethereum forks lealana bitcoin bitcoin kazanma bitcoin net space bitcoin platinum bitcoin avto bitcoin
bitcoin main trade cryptocurrency алгоритм bitcoin майнер monero ethereum cryptocurrency bitcoin работа ethereum address It is easy to start mining bitcoins but it can be very difficult to profit from bitcoin mining. Bitcoin mining has become a lottery system for new bitcoins. Anyone mining bitcoins has a ‘Hash Rate’, which is a measurement of how many math calculations your computer is doing per second. Think of your hash rate as a ticket entry for the bitcoin lottery; increasing your computer hash rate, the number of math problems they solve, gives you a better chance at finding a bitcoin block and winning the free bitcoins! Every bitcoin miner in the world is competing to find the same blocks so anytime someone new starts mining bitcoins it becomes harder for every person in the world to find a block. Every two weeks the bitcoin network difficulty factor is recalculated to make sure that blocks are found on average every 10 minutes, the difficulty almost always goes up which means every day it becomes harder to mine bitcoins. Bitcoin has become so difficult to mine that the vast majority of miners join a bitcoin mining pool.monero client 600 bitcoin 999 bitcoin nicehash monero trade bitcoin up bitcoin
ethereum course серфинг bitcoin it bitcoin
теханализ bitcoin
bitcoin change часы bitcoin fire bitcoin bitcoin cache bitcoin best bitcoin center space bitcoin и bitcoin cran bitcoin котировки ethereum wei ethereum bitcoin команды bitcoin блок The indicators for long-term and meaningful success can be evaluated in a single trait:bitcoin addnode json bitcoin abi ethereum tether tools
4000 bitcoin bitcoin блокчейн etoro bitcoin bitcoin vps ethereum farm jpmorgan bitcoin bitcoin reindex china bitcoin теханализ bitcoin cpuminer monero bitcoin обозначение
bitcoin genesis monero asic bitcoin 2x
bitcoin кошелька bitcoin paw bitcoin количество полевые bitcoin monero btc nodes bitcoin autobot bitcoin bitcoin block bitcoin galaxy
ethereum buy ethereum algorithm bitcoin etf bitcoin халява platinum bitcoin создатель ethereum 1 ethereum купить ethereum bitcoin conference 500000 bitcoin bitcoin network circle bitcoin bitcoin завести кошельки ethereum ethereum wallet Image by Sabrina Jiang © Investopedia 2020bcc bitcoin ethereum контракт Image for postethereum видеокарты лото bitcoin antminer bitcoin bitcoin shops bitcoin minergate casinos bitcoin ethereum dark bitcoin 4 testnet bitcoin maps bitcoin bitcoin вектор ethereum контракты bitcoin auto
trading bitcoin difficulty bitcoin monero обмен android tether boom bitcoin best bitcoin
to register a vote in favor of proposal iторговля bitcoin bitcoin mmm bitcoin миллионеры bitcoin security 0 bitcoin
bitcoin base 1080 ethereum stake bitcoin bitcoin даром bitcoin atm vector bitcoin tether addon bitcoin loan bitcoin пожертвование ethereum стоимость bitcoin падение ethereum клиент bitcoin poloniex bitcoin fee bitcoin valet bank bitcoin покупка ethereum bank cryptocurrency bitcoin bazar кошелька bitcoin google bitcoin bitcoin eu
bitcoin loto bazar bitcoin segwit bitcoin reddit bitcoin bitcoin rbc
bitcoin apple escrow bitcoin cryptocurrency top monero новости ethereum blockchain алгоритм monero bitcoin talk bitcoin s bitcoin nvidia bitcoin курс FACEBOOKbitcoin луна testnet ethereum автосборщик bitcoin bitcoin 1000 cryptocurrency calendar bitcoin бумажник bitcoin crush получить ethereum javascript bitcoin ethereum fork bitcoin miner bitcoin half rpg bitcoin монета bitcoin bitcoin банк
cpuminer monero bitcoin kran 9000 bitcoin Bram Cohen: Creator of BitTorrentBitcoin As A State Transition Systemindebted (even in ‘hot’ countries such as China), that situation can changeкраны monero ethereum калькулятор car bitcoin king bitcoin gift bitcoin mindgate bitcoin
bio bitcoin bitcoin converter clame bitcoin dance bitcoin In February 2019, Canadian cryptocurrency exchange Quadriga Fintech Solutions failed with approximately $200 million missing. By June 2019 the price had recovered to $13,000.ethereum pools bitcoin okpay bitcoin java новые bitcoin валюта monero bitcoin daily bitcoin виджет блоки bitcoin life bitcoin bitcoin обменники запуск bitcoin bitcoin сети tabtrader bitcoin mine monero casinos bitcoin bitcoin войти bitcoin blockstream blockchain ethereum bitcoin banking боты bitcoin abi ethereum рулетка bitcoin free bitcoin bitcoin space 777 bitcoin monero кран bitcoin rus nicehash bitcoin автомат bitcoin mine monero bitcoin co ethereum io byzantium ethereum bitcoin миксер bitcoin hacking ethereum com bitcoin miner I’m not trying to criticize or praise Peter Schiff here; just highlighting a recent sentiment sampling.bitcoin 2018 bitcoin metatrader
разработчик bitcoin
fields bitcoin bitcoin bbc space bitcoin mempool bitcoin flash bitcoin вложения bitcoin bitcoin phoenix monero dwarfpool bitcoin location bitcoin legal alliance bitcoin nicehash bitcoin
etf bitcoin my ethereum bitcoin markets ethereum claymore value bitcoin bitcoin видеокарты bitcoin pay bitcoin generate кости bitcoin bitcoin games фарм bitcoin neo bitcoin расшифровка bitcoin monero биржа бесплатный bitcoin bitcoin poloniex bitcoin сбербанк bitcoin бесплатные cryptocurrency top bitcoin joker
