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Does Bitcoin have an intrinsic value?

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This is educational video series explaining common stumble blocks and misconceptions about Bitcoin! This video is genereously sponsored by http://BitBiz.io - the cryptocurrency business forum where you become share-holder and earn money just by participating! Contact us to sponsor another one! And just in case for the minimal chance that you would like to tip me, here is my bitcoin address :) 1M2GpzSyTMLgrXciGbPbhQAcRpoWgwyvrx Here is a transcript of the video: For something to has intrinsic value, it has to be useful by itself. For example the bread is useful because you can eat it and people NEED to eat. The knife is useful because it can cut things and that comes handy in the everyday life. Gold has some intrinsic value because one can make jewelry from it and conductors. The thing is that if the price of gold was based just on it's intrinsic value it would be about $50 not up to $1800. That's the % that's used in industry, the rest is just because of it's store of value use. But even with that partial intrinsic value it's still consdidered the best store of value there is. Now cash, it doesn't have intrinsic value what so ever. Yeah you can burn them to keep yourself warm but that's not very effecient use :) It used to be backed by gold which has partial intrinsic value but that's no longer the case. US dropped the gold standard in "71 and the rest of the world shortly followed. So fiat money have 0 intrinsic value but they are still one of the most used things worldwide. How come? Well they are extremely convenient compared to barter trading that used to be the norm before money were invented. So they are convenient and the government says we shoud use them and that's about it. Now bitcoin is digital cash. So, even if a single bitcoin doesn't have an intrinsic value by itself it's ok since cash doesn't have either. And bitcoins are just the cash of the future, because they take all the features of cash and make them much better! But wait it gets better, how about the bitcoin network? Does it have an intrinsic value? Think for a second how useful will be your phone if networks didn't exist and you couldn't speak to anyone? It would be as useful as brick. So, even if a bitcoin by itself is just a bunch of numbers, the network behind it has an enormous value, because it lets you do so many things, so much better! Just few examples... 1. It doesn't care about borders and local policies. It's a non-discriminative global currency that just works for everyone! 2. It requires no trust in some central authority or bank. It's based on math, not trust. You don't have to trust that 2+2 is 4, you can see it for yourself. 3. It can NOT be counterfeit. 4. It can be transparent. That might come handy for government spending monitoring once it goes mainstream. 5. It can be programmed to do whatever you like 6. It can be set to require agreement from few people at once to be spent. 7. It can be spent over the internet. 8. Your identity can't be stolen when using bitcoins online. Unlike credit cards. And this is just the beginning! Like the internet in 95, who would have imagined back then how many things it would allow us to do today? Back then nobody envisioned most of them and now 20 years later it has changed our lives in so many ways! Quite beautiful isn't it? :) Comment, subscribe, like and reddit if that's what floats your boat. Every bit of sharing the knowledge helps! :)
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Text Comments (11)
Mars Thincsus (6 months ago)
I think it does have an intrinsic value. The value of a network is related to the number of users. Think ethernet. 1 computer connected = no value, 2 computers connected = double the value, 3 computers = 3^2 value etc. I have explored this a bit here https://cryptotyr.blogspot.is/2018/05/call-me-ishmaelare-bitcoin-whales.html please check it out see what you think.
sailesh ram (11 months ago)
I just tipped you some.. Enjoy
Daniel Mayo (1 year ago)
To sum it up: Bitcoin in itself is a worthless token, but there's this awesome network where we can exchange these worthless tokens.
Tony Silva (8 months ago)
Daniel Mayo and if and when the central bank's stakeholders feel threatened by the cryptocurrency they could shut down all the exchanges then bye bye goes any and all receives value of cryptocurrencies. I hope you don't mind that I continue to where you left off, it rather completes the picture
Mario Novak (3 years ago)
Girl , you should have some experience or understanding of basic economics and finance stuff before making such videos. Fiat money is backed by a loan repayment obligation or in other words by debt. Fiat money in the modern economy is created by banks when they make loans. In a loan, the borrower initially receives an amount of money and is obligated to pay back or repay an equal amount of money(plus interest) to the lender at a later time. Binary bits in the bank's computer in the form of deposit(new money) is a representation of borrower's obligation to pay back money to the lender - bank. When a loan is paid off money is destroyed, except the interest. This interest is then backed by goods and services created by borrower or by borrower's own property that is now in the form of a fee paid by a borrower to the bank for the use of the loan.  So you can't just create bits out of thin air and receive real goods and services for them without any obligation to pay them back through future work or you own property. But bitcoin is exactly that. Binary bits propagated through the payment network in the form of BTC are created out of thin air and aren't backed by any obligation. That's why bitcoin is a scam and a ponzi scheme.
Tony Silva (8 months ago)
Mario Novak Queen could be designated as a Fiat of a main superpower provided that superpower has the military power to obligate that people to forcibly accept it as currency. Wishing times is the plan anyway for everyone on digital currency to remove all physical cash and perhaps even people with a microchip for convenience to hold the account balances. It also serves quite well to remove any and all incentives to leave out the middleman when he comes to receive his portion other fruits of men's labor upon committing to a contract with another man and, the third party who feels entitled to the fruits or partial fruits of my labor, a king for instance feudal Lords excetera excetera
Andreas Philippou (2 years ago)
agree about the process which fiat money works that you've outlined.But how is the process related to the argument that bits out of thin air backed by no obligation cannot be used as money?loads of stuff can be used as money,because money is simply a representation of value.However a lot of things aren't convenient to be used as money.Bitcoin can be used as money because it satisfies a lot of requirements of money set out by Aristotle 1000 years ago namely that : 1.) It must be durable. Money must stand the test of time and the elements. It must not fade, corrode, or change through time. 2.) It must be portable. Money hold a high amount of 'worth' relative to its weight and size. 3.) It must be divisible. Money should be relatively easy to separate and re-combine without affecting its fundamental characteristics. An extension of this idea is that the item should be 'fungible'. Dictionary.com describes fungible as: "(esp. of goods) being of such nature or kind as to be freely exchangeable or replaceable, in whole or in part, for another of like nature or kind." 4.) It must have intrinsic value. This value of money should be independent of any other object and contained in the money itself. being backed by debt is not a requirement and why should be? Also fiat money do satisfy some of the characteristics of money, hence they are used as such, but there has been some times that was a truly disappointing way for the exchange of value. See Germany during hyperinflation or Zimbabwe currently. But even if am wrong and the "girl" is wrong and you are right you could have just provided and assist the discussion without the offending and unnecessary remarks.
xavier (3 years ago)
Digital pixel numbers of bitcoins on your phone screen bank app determine your whole destiny.. how about we realize we fucked up and go back to trading gold and silver coins?
jihyeon887 (3 years ago)
Hey! Have you tried - Brians Bitcoin Big Bang (google it)? Should you be contemplating making money with Bitcoin, I have heard some unbelievable things about it and my father got cool rewards with it. 
Mark Rees (4 years ago)
Nice job!  Here's a more complete list. http://bitcoinmagazine.com/12846/you-say-bitcoin-has-no-intrinsic-value-twenty-two-reasons-to-think-again/
TheKapers83 (4 years ago)
Bitcoin hasn't any tangible properties, but it has many intrinsic properties. Interestingly, being intangible is actually an intrinsic value for bitcoin!

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