Well, if you are saying that there is no Intrinsic value, then I’m afraid you haven’t understood it yet. If you want, then please read on.
First of all there are many definitions for “intrinsic value”. The one you pointing is:
“
Economics: No intrinsic value exists for any good or service except its price (see use value) which is reflection of its demand and supply position and not of any inherent quality”.
But there are two other definitions which are more matching bitcoin’s realm:
“
The actual value of an asset based on an underlying perception of its true value including all aspects, in terms of both tangible and intangible factors”.
And:
“
Record keeping: Worth of a document expressed in monetary terms, due to some unique factor such as a signature, age, seal, or circumstances in which it was created”
Especially the last one is what makes that the bitcoin-protocol has Intrinsic Value. Just because in essence it is a Ledger! Keep that always in mind.
For as long as people exist, we register value (units of work) in Ledgers. They are extremely useful and thereby extremely valuable. Especially if you can offer a secure and immutable Ledger (ask your Notary). But all known Ledgers before 2008 weren’t that secure, there was always some single point of failure (corruption, fraud, war, etc.). Until 2008 when the bitcoin-protocol was invented (for which there will be a Noble-price once), which solved “trust in an untrusty environment”. A decentralized trust-less and immutable Ledger was born, which is storming the world in finance, accountancy and notary right now, as it’s so much better than what we had before.
Please read this post
https://www.elitetrader.com/et/posts/4472699/.
There I explained that one full bitcoin, actually represents 100 million Ledger-rows. So if you own one you can register a lot in this immutable Ledger. Many see the Intrinsic Value of such rows, as they will be used in future for everything we as people use ledgers for. And as such, 100 million rows are now worth about $2000. Which I (and many investors who understand what this means) think is a bargain. In 10 maybe 20 years our world will use these ledgers massively. And the ledger which offers the most secure and useful features will be worth a lot. Currently, among all the crypto-currencies, it’s Bitcoin which is by far the most secure (it has the most accountants{miners} and is extremely stubborn to protocol changes). This means that when tinkering might change its security, prices will tumble (as its Intrinsic Value goes down).
