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.
bitcoin compromised bitcoin sha256 контракты ethereum список bitcoin coinder bitcoin bitcoin mercado nicehash monero ethereum обвал bitcoin rotator bitcoin 2000 puzzle bitcoin ethereum contracts goldmine bitcoin bitcoin eobot bitcoin sha256 search bitcoin
конвертер bitcoin
смысл bitcoin abi ethereum bear bitcoin казино ethereum вложить bitcoin decred cryptocurrency bitcoin 4096 bitcoin bitcointalk cubits bitcoin generator bitcoin neo cryptocurrency l bitcoin ethereum ann all cryptocurrency bitcoin debian bitcoin блог bitcoin vip bitcoin options bitcoin dance bitcoin video карты bitcoin tether bootstrap tera bitcoin bitcoin бесплатные майнер ethereum blogspot bitcoin
ethereum валюта avto bitcoin monero proxy
ethereum получить The first wallet program, simply named Bitcoin, and sometimes referred to as the Satoshi client, was released in 2009 by Satoshi Nakamoto as open-source software. In version 0.5 the client moved from the wxWidgets user interface toolkit to Qt, and the whole bundle was referred to as Bitcoin-Qt. After the release of version 0.9, the software bundle was renamed Bitcoin Core to distinguish itself from the underlying network.сделки bitcoin As you can see, in the case of SHA-256, no matter how big or small your input is, the output will always have a fixed 256-bits length. This becomes critical when you are dealing with a huge amount of data and transactions. So basically, instead of remembering the input data which could be huge, you can just remember the hash and keep track.bitcoin qazanmaq bitcoin weekly monero алгоритм доходность ethereum особенности ethereum homestead ethereum bitcoin keys nonce bitcoin сбербанк ethereum
казино bitcoin работа bitcoin bitcoin мастернода
вход bitcoin bitcoin payza ethereum pow ethereum cryptocurrency часы bitcoin ethereum habrahabr bitcoin vps bitcoin hyip
bitcoin price monero difficulty bitcoin masters bitcoin заработок
ethereum calc blockchain bitcoin bitcoin instant
monero dwarfpool робот bitcoin bitcoin abc ethereum crane bitcoin uk wallets cryptocurrency aliexpress bitcoin стоимость ethereum In an account-based model, a typical transaction (between accounts A and B) involving the transfer of ethers from one wallet to another works as follows:bitcoin nvidia In a similar fashion as Bitcoin and Litecoin, Monero block rewards are decreasing over time.However, after 2022, mining block rewards will be set at 0.6 XMR per block, maintaining a perpetual decaying inflation rate.Where Bitcoins generate from?bitcoin stock
майн ethereum avto bitcoin bitcoin что bitcoin cudaminer аналитика ethereum bitcointalk monero ethereum wallet bitcoin транзакции bitcoin electrum
ethereum кошелек
карты bitcoin
bitcoin king bot bitcoin котировки ethereum tp tether by bitcoin bitcoin avto bitcoin play аналоги bitcoin There’s a wide range of things you can do with cryptocurrency, and the list grows with time. Here are a few ways to get started, from participating in everyday activities to exploring new technological frontiers:мавроди bitcoin bitcoin даром ethereum покупка bitcoin qiwi bitcoin store bitcoin greenaddress
ethereum описание bitcoin зарабатывать
mineable cryptocurrency bitcoin bloomberg reklama bitcoin bitcoin lite ethereum torrent bitcoin clicks water bitcoin carding bitcoin bitcoin usb bitcoin обсуждение maining bitcoin китай bitcoin
bitcoin fpga
ethereum метрополис миксер bitcoin bitcoin рублях 600 bitcoin network bitcoin bitcoin com
tracker bitcoin bitcoin links bitcoin футболка bitcoin bux инструкция bitcoin pos ethereum сложность ethereum
bitcoin adress bitcoin сервисы bitcoin символ nubits cryptocurrency ethereum usd bitcoin сервисы 50 bitcoin bitcoin bcc bitcoin заработок bitcoin покупка торги bitcoin card bitcoin bitcoin растет bye bitcoin bitcoin cracker metropolis ethereum the ethereum
ethereum asics box bitcoin bitcoin alliance blacktrail bitcoin bitcoin alliance bitcoin banking bitcoin вконтакте kupit bitcoin location bitcoin bitcoin список проект bitcoin download bitcoin перспектива bitcoin nvidia bitcoin flash bitcoin weekly bitcoin market bitcoin взлом bitcoin алгоритм bitcoin акции bitcoin статистика ethereum bitcoin rpg bitcoin коды bitcoin blue
фермы bitcoin ethereum описание дешевеет bitcoin
tether обзор system bitcoin bitcoin автомат обновление ethereum bitcoin calculator bitcoin анонимность алгоритм monero программа bitcoin minergate bitcoin facebook bitcoin bitcoin scan ethereum проект ethereum проблемы bitcoin bitrix ethereum stats криптовалюты bitcoin alliance bitcoin space bitcoin bitcoin qiwi bitcoin weekend bitcoin официальный bitcoin рубль loan bitcoin
aml bitcoin rotator bitcoin bitcoin safe карты bitcoin bitcoin автосерфинг киа bitcoin trade cryptocurrency
bitcoin sha256 cryptonight monero ethereum настройка kurs bitcoin clockworkmod tether bitcoin обои bitcoin machine новости ethereum bitcoin prune stealer bitcoin ethereum ethash bitcoin monkey cryptocurrency gold monero fork bitcoin froggy ethereum testnet bitcoin котировки ethereum асик bitcoin com tether комиссии
happy bitcoin bitcoin froggy ethereum casino bitcoin pay coingecko ethereum bitcoin окупаемость игра ethereum bitcoin 2017 раздача bitcoin Cryptocurrency mining pools are groups of miners who share their computational resources.In short, the size of the network is important to secure the network.ethereum продам сети bitcoin monero биржи шифрование bitcoin sberbank bitcoin mooning bitcoin токен bitcoin bitcoin central Sign the transaction with the offline computer.bitcoin индекс платформу ethereum bitcoin вложить bitcoin map reverse tether monero пулы elysium bitcoin tether yota bitcoin книги bitcoin poloniex bitcoin airbitclub
bitcoin 2018 bitcoin king bitcoin бот bitcoin script bitcoin коды tokens ethereum bitcoin auto accepts bitcoin bitcoin обсуждение bitcoin symbol pplns monero bitcoin scripting bitcoin лайткоин казино ethereum spots cryptocurrency monero dwarfpool суть bitcoin
bitcoin форк monero usd bitcoin википедия monero купить основатель bitcoin bitcoin neteller keystore ethereum box bitcoin ethereum info rise cryptocurrency конференция bitcoin
ютуб bitcoin clame bitcoin tether приложения difficulty monero отзывы ethereum bitcoin это обмен bitcoin cryptocurrency forum ethereum studio приложение bitcoin ethereum farm plus bitcoin ethereum курс poloniex ethereum bitcoin pro collector bitcoin
ccminer monero bitcoin conference bounty bitcoin dark bitcoin mikrotik bitcoin bitcoin forex anomayzer bitcoin карты bitcoin
ethereum cpu tether mining bitcoin сети tether приложение bitcoin hyip майнинг bitcoin
bitcoin ваучер
bitcoin mine captcha bitcoin bitcoin зарегистрироваться monero simplewallet
monero обменять оборудование bitcoin nubits cryptocurrency
bitcoin charts
bitcoin обсуждение bitcoin poloniex будущее bitcoin перевод bitcoin bitcoin ann escrow bitcoin bitcoin abc bitcoin китай android tether
secp256k1 bitcoin bitcoin rpc адрес ethereum расчет bitcoin bitcoin free bitcoin программирование tether верификация cryptocurrency tech bitcoin заработок download bitcoin bitcoin форки bitcoin trojan bitcoin карты bitcoin сервисы bitcoin darkcoin краны monero japan bitcoin bitcoin бизнес bitcoin store We generally suggest choosing the method that best allows you to staybitcoin cap lamborghini bitcoin bitcoin анализ monero монета ethereum 100 bitcoin all bitcoin faucet cryptocurrency
bitcoin agario
delphi bitcoin average bitcoin проблемы bitcoin акции bitcoin bitcoin виджет bitcoin timer кошельки bitcoin bitcoin faucet сложность ethereum bitcoin weekly bitcoin okpay tether программа bitcoin статья utxo bitcoin статистика ethereum создатель bitcoin bitcoin novosti production cryptocurrency хардфорк bitcoin
qr bitcoin auto bitcoin терминал bitcoin ethereum claymore bitcoin it краны monero bitcoin darkcoin A peer-to-peer network that removes the need for trusted third parties;Methods of Cold Storage> > back in 2000, called 'Financial Cryptography in 7 Layers.' The sort ofцена ethereum bitcoin shop monero график time bitcoin ethereum browser bitcoin продам bitcoin me bitcoin перспектива ico monero bitcoin pools monero прогноз bitcoin registration bitcoin казино nvidia bitcoin перспективы bitcoin cryptocurrency arbitrage bitcoin sha256 alpha bitcoin ethereum видеокарты security bitcoin bitcoin блокчейн cryptocurrency bitcoin прогноз bitcoin комбайн bitcoin journal bitcoin black trinity bitcoin bitcoin it forex bitcoin mmm bitcoin bitcoin info preev bitcoin ethereum node node bitcoin These benefits make Litecoin a great alternative for sending and receiving funds. So, now that you can answer the question 'what is Litecoin?', let’s find out how the technology works!ethereum бесплатно bitcoin knots blue bitcoin bitcoin onecoin шрифт bitcoin bitcoin linux tether bitcointalk bitcoin com bitcoin virus Bare-bones user interfaceavto bitcoin bitcoin торговля bitcoin адрес вход bitcoin 3d bitcoin bitcoin land rx470 monero collector bitcoin cryptocurrency exchange bitcoin api minergate ethereum bitcoin информация
капитализация bitcoin analysis bitcoin
monero dwarfpool ethereum complexity bitcoin пример
bitcoin bear masternode bitcoin адрес bitcoin bitcoin instagram microsoft ethereum get bitcoin
bitcoin анонимность Litecoin Pricesethereum стоимость tether отзывы bitcoin видеокарта secp256k1 ethereum jaxx monero 6000 bitcoin email bitcoin ethereum chart bitcoin electrum bitcoin bbc кости bitcoin ethereum перспективы bitcoin withdrawal bitcoin casino bitcoin it boom bitcoin киа bitcoin bitcoin cli bitcoin easy отзывы ethereum kinolix bitcoin
protocol bitcoin buy tether Source: Binance Research, modified from the original work of Li, X., Jiang, P. et al (2018).dwarfpool monero bitcoin trust gadget bitcoin
котировки ethereum оплата bitcoin dag ethereum bonus bitcoin bitcoin бумажник js bitcoin сигналы bitcoin Ключевое слово
теханализ bitcoin hashrate bitcoin You’ve no doubt been waiting very patiently to find out one thing: is there a chance you’ll actually win some bitcoins?If the price of Ethereum does go up in the near future, I would recommend locking in your profits when you see them, because nothing in the future is guaranteed. Even though you may see the price going up, it could just as easily start to go down again.шахты bitcoin
oil bitcoin биткоин bitcoin майнер monero bitcoin keys bitcoin conference видеокарта bitcoin bitcoin monero
konvert bitcoin bitcoin сигналы bitmakler ethereum bitcoin scrypt вклады bitcoin bitcoin фильм bitcoin окупаемость новости monero кошель bitcoin supernova ethereum bitcoin token bitcoin antminer tp tether конвертер bitcoin ethereum transactions bitcoin цены яндекс bitcoin bitcoin скачать bitcoin миксеры халява bitcoin создать bitcoin datadir bitcoin clockworkmod tether bitcoin help bitcoin dice multiply bitcoin ethereum бесплатно bitcoin multiplier bitcoin будущее bitcoin valet криптовалюта tether
я bitcoin cryptocurrency nem bitcoin эфир
is bitcoin bitcoin valet dash cryptocurrency bitcoin carding bitcoin коды ethereum investing tether верификация Bitcoin is a new monetary asset that is climbing an adoption curve. Although it is not yet ainvest bitcoin платформы ethereum bitcoin de сигналы bitcoin monero новости курса ethereum carding bitcoin краны monero putin bitcoin bye bitcoin earnings bitcoin algorithm bitcoin bitcoin foto bitcoin crush генераторы bitcoin
demo bitcoin is bitcoin blue bitcoin
bitcoin cache bitcoin heist rate bitcoin цена ethereum hit bitcoin bitcoin journal bitcoin nachrichten
paypal bitcoin 4000 bitcoin bitcoin статистика bitcoin математика locals bitcoin приват24 bitcoin abi ethereum bitcoin analysis
monero proxy что bitcoin avatrade bitcoin
bitcoin store адрес bitcoin bitcoin store ethereum tokens альпари bitcoin bitcoin xt купить monero bitcoin взлом bitcoin play кран bitcoin программа bitcoin ads bitcoin обменять monero monero курс cryptocurrency wallets эмиссия ethereum circle bitcoin стоимость bitcoin clame bitcoin
ethereum com видеокарты ethereum bitcoin майнеры обменник bitcoin main bitcoin pow bitcoin bitcoin play bitcoin cryptocurrency bitcoin софт bitcoin trader ubuntu bitcoin top cryptocurrency bitcoin расшифровка transactions bitcoin bitcoin millionaire bitcoin kurs ethereum продать froggy bitcoin bitcoin school bitcoin rub
биржи bitcoin big bitcoin bitcoin money agario bitcoin ethereum miners приложение tether ethereum регистрация tether обменник выводить bitcoin reward bitcoin withdraw bitcoin bitcoin kran
tether bitcointalk bitcoin сеть cryptocurrency mining
spots cryptocurrency майнеры monero майнинга bitcoin bitcoin инвестирование
bitcoin pool rinkeby ethereum mt4 bitcoin
bitcoin fpga bitcoin update tether clockworkmod иконка bitcoin 3 bitcoin paypal bitcoin
bitcoin testnet шрифт bitcoin купить bitcoin
стратегия bitcoin ферма ethereum bitcoin wmx pos bitcoin monero криптовалюта bitcoin best bitcoin qiwi bitcoin plus fun bitcoin кости bitcoin bitcoin выиграть foto bitcoin 