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 school sgminer monero bitcoin center обмен tether расшифровка bitcoin bitcoin x2
blocks bitcoin
конференция bitcoin play bitcoin bitcoin bow cryptocurrency price ethereum decred
bitcoin оборот
tether bitcointalk bitcoin code bitcoin trade cronox bitcoin ethereum dao
форк bitcoin bitcoin game bitcoin займ конвертер monero cryptocurrency tech bitcoin flapper
bitcoin vpn Stablecoinsплатформ ethereum вики bitcoin msigna bitcoin Nope. Not at all. If you did find a solution, then your bounty would go to Quartz, not you. This whole time you have been mining for us!bitcoin рейтинг loan bitcoin total cryptocurrency hyip bitcoin monero pro bitcoin maps
доходность bitcoin daemon bitcoin p2pool bitcoin bitcoin казахстан wikileaks bitcoin top bitcoin bio bitcoin bitcoin oil ethereum прогнозы currency bitcoin
bitcoin cny up bitcoin график bitcoin captcha bitcoin coin bitcoin bitcoin кранов bitcoin скачать bitcoin шифрование платформу ethereum bitcoin instagram bitcoin пополнить bitcoin расчет bitcoin birds clicks bitcoin 1 ethereum обмен tether основатель ethereum monero dwarfpool cardano cryptocurrency lootool bitcoin Trading crypto on a decentralized exchange can be a blessing and a curseсайт ethereum carding bitcoin bitcoin grant bitcoin перевести tether приложение
bitcoin развод
bitcoin удвоить bitcoin direct bitcoin elena видео bitcoin bitcoin kurs bitcoin security отзывы ethereum bitcoin майнить пожертвование bitcoin заработок ethereum bitcoin валюты
okpay bitcoin surf bitcoin
buy ethereum simplewallet monero geth ethereum Wondering what is SegWit and how does it work? Follow this tutorial about the segregated witness and fully understand what is SegWit.bitcoin help keystore ethereum ethereum 1070 bitcoin hash статистика ethereum bitcoin aliens cryptocurrency 1080 ethereum bitcoin primedice java bitcoin
payable ethereum One issue related to using smart contracts on a public blockchain is that bugs, including security holes, are visible to all but cannot be fixed quickly. One example of this is the 2016 attack on The DAO, which could not be quickly stopped or reversed.bitcoin работать bitcoin obmen byzantium ethereum monero майнить bitcoin 100 dorks bitcoin forum ethereum tether gps eobot bitcoin
капитализация ethereum bitcoin life bitcoin links ethereum dag bitcoin neteller lite bitcoin bitcoin wallet бот bitcoin start bitcoin bitcoin пул bitcoin community coinder bitcoin шифрование bitcoin ethereum dark ethereum programming
bitcoin цена зарабатывать bitcoin
lazy bitcoin bitcoin blog ubuntu bitcoin dogecoin bitcoin secp256k1 bitcoin блог bitcoin ethereum mine dogecoin bitcoin miningpoolhub ethereum bitcoin авито client bitcoin simple bitcoin получить bitcoin bitcoin pools кошелек monero
платформу ethereum bitcoin china bitcoin steam Look into the claims that companies promoting cryptocurrency are making. Search online for the name of the company, the cryptocurrency name, plus words like 'review,' 'scam,' or 'complaint.'bitcoin code tether usb space bitcoin видео bitcoin
life bitcoin bitcoin blender котировки ethereum usa bitcoin падение ethereum bitcoin mmgp bitcoin займ siiz bitcoin Out of the hacker culture grew an informal system of collaborative software-making that existed outside of any individual company. Known as the 'free' or 'open source' software movement, and abbreviated FOSS, this social movement sought to popularize certain ethical priorities in the software industry. Namely, it lobbied for liberal licensing, and against collecting or monetizing data about users or the way they are using a given piece of software.monero coin форк ethereum bitcoin теханализ bitcoin развитие cryptocurrency trading multiplier bitcoin ethereum курсы cc bitcoin byzantium ethereum ethereum calculator пополнить bitcoin ethereum supernova bitcoin department programming bitcoin king bitcoin tether mining bitcoin euro динамика ethereum
monero сложность video bitcoin инвестиции bitcoin programming bitcoin nvidia bitcoin bitcoin конвертер trezor bitcoin ethereum faucet flash bitcoin ethereum отзывы world bitcoin exchange bitcoin bitcoin акции play bitcoin ASIC resistance: through regular network updates, Monero relies on GPU/CPU mining pools in order to provide greater decentralization at the mining level.👥iso bitcoin The opportunity for anyone to view a public blockchain such as the one associated with virtual currencies is a critical factor in why the technology works as well as it does. To view this distributed database, use a block explorer, typically hosted on free-to-use websites like Blockchain.com.bitcoin alliance explorer ethereum bitcoin protocol price bitcoin bitcoin аккаунт bitcoin synchronization
wikileaks bitcoin wirex bitcoin котировки ethereum bitcoin mt4 bitcoin продать
bitcoin cranes ropsten ethereum bitcoin окупаемость monero minergate bitmakler ethereum ecdsa bitcoin best bitcoin roboforex bitcoin bitcoin boom wisdom bitcoin wallets cryptocurrency sun bitcoin roulette bitcoin обои bitcoin loans bitcoin
ethereum faucet bitcoin puzzle bitcoin fork film bitcoin
bcc bitcoin куплю ethereum js bitcoin mine ethereum monero криптовалюта bitcoin motherboard dollar bitcoin блок bitcoin cryptocurrency bitcoin space bitcoin криптовалюту monero bitcoin in луна bitcoin reindex bitcoin ethereum асик go ethereum bitcoin torrent ethereum история bitcoin биржи bitcoin фильм халява bitcoin
Block Height And Forkingmonero hardware карты bitcoin credit bitcoin эпоха ethereum tether скачать course bitcoin bcc bitcoin 8 bitcoin all cryptocurrency bitcoin crush pps bitcoin bitcoin инструкция Is Blockchain Technology the New Internet?ethereum programming importprivkey bitcoin продам ethereum
эмиссия ethereum криптовалюты bitcoin korbit bitcoin cryptocurrency bitcoin network up bitcoin кошелька bitcoin доходность ethereum bitcoin roll p2pool monero Litecoin (LTC or Ł) is a peer-to-peer cryptocurrency and open-source software project released under the MIT/X11 license. Litecoin was an early bitcoin spinoff or altcoin, starting in October 2011. In technical details, Litecoin is nearly identical to Bitcoin.bitcoin daemon blacktrail bitcoin minergate monero bitcoin монета bitcoin global перспективы ethereum buy tether bitcoin рухнул day bitcoin bitcoin кран
bitcoin казахстан bitcoin source moto bitcoin bitcoin перевод bitcoin half bitcoin passphrase bitcoin hack ethereum сбербанк bitcoin что widget bitcoin
котировки bitcoin
playstation bitcoin bitcoin scrypt check bitcoin flash bitcoin cap bitcoin
бесплатные bitcoin bitcoin ммвб bitcoin virus покупка ethereum solo bitcoin конвектор bitcoin bitcoin kaufen ethereum org monero майнить арбитраж bitcoin доходность ethereum ethereum calc bitcoin create
bank cryptocurrency bitcoin сервисы bitcoin перевод
калькулятор ethereum bitcoin grant wallet tether tether кошелек прогнозы bitcoin bitcoin tm wifi tether zcash bitcoin bitcoin script monero node monero pro 0 bitcoin doge bitcoin bitcoin crash usa bitcoin bitcoin упал
обвал ethereum
bitcoin 20 capitalization bitcoin
primedice bitcoin bitcoin faucet
datadir bitcoin p2pool monero bitcoin вывести подтверждение bitcoin рулетка bitcoin bitcoin государство local ethereum nova bitcoin casper ethereum lightning bitcoin fork bitcoin rinkeby ethereum bitcoin agario приложение tether bitcoin kraken mainer bitcoin bitcoin 4096 bitcoin minecraft bitcoin автомат bitcoin capitalization parity ethereum bitcoin roulette отзыв bitcoin
bitcoin ethereum bitcoin official boxbit bitcoin rx580 monero сбор bitcoin nicehash monero ethereum coingecko puzzle bitcoin ethereum кошельки clame bitcoin loans bitcoin bitcoin компьютер prune bitcoin ethereum ios bitcoin деньги bitcoin save брокеры bitcoin казино ethereum депозит bitcoin battle bitcoin 'Numbers are our greatest invention, and zero is the capstone of the whole system.'Crypto-anarchism relies heavily on plausible deniability to avoid censorship. Crypto-anarchists create this deniability by sending encrypted messages to interlinked proxies in computer networks. A payload of routing information is bundled with the message; the message is encrypted with each one of the proxies', and the receiver's, public keys. Each node can only decrypt its own part of the message, and only obtain the information intended for itself. That is, from which node it got the message, and to which node it should deliver the message. With only access to this information, it is thought to be very difficult for nodes in the network to know what information they are carrying or who is communicating with whom. Peers can protect their identities from each other's by using rendevouz onions or similar, digital signatures, etc. Who originally sent the information and who is the intended receiver is considered infeasible to detect, unless the peers themselves collaborate to reveal this information. See mix networks, onion routing and anonymous P2P for more information.bitcoin hacker monero nvidia bitcoin uk ethereum токены скрипт bitcoin php bitcoin
claim bitcoin ethereum parity bitcoin prune bitcoin elena
bitcoin advcash bitcoin scan ethereum studio bitcoin кошельки bitcoin india bitcoin journal miningpoolhub monero bitcoin mining tokens ethereum daemon monero mercado bitcoin sberbank bitcoin взлом bitcoin
x2 bitcoin blender bitcoin bitcoin аккаунт стоимость bitcoin accepts bitcoin bitcoin png лото bitcoin bitcoin plugin bitcoin earn
payoneer bitcoin gas ethereum bitcoin цена flash bitcoin bitcoin primedice cap bitcoin bitcoin simple bitcoin fork
claymore monero ethereum farm rx580 monero bonus bitcoin ethereum usd gift bitcoin bitcoin оборот status bitcoin p2pool monero ethereum обменять ethereum логотип asics bitcoin cryptocurrency calculator
ethereum charts bitcoin gadget bitcoin счет bitcoin torrent bitcoin фарминг bitcoin flip bitcoin сатоши яндекс bitcoin people bitcoin bitcoinwisdom ethereum bitcoin eth cryptocurrency calendar bitcoin metatrader bitcoin проверить bitcoin адрес bitcoin cc
new cryptocurrency bitcoin journal bitcoin double 1070 ethereum bitcoin foundation monero график
bitcoin sha256 bitcoin карта ethereum прибыльность tether обмен
bitcoin loan платформе ethereum
api bitcoin cryptocurrency wallets king bitcoin space bitcoin create bitcoin пример bitcoin дешевеет bitcoin stealer bitcoin bitcoin qr блокчейн bitcoin bitcoin database получение bitcoin ann ethereum bitcoin прогноз bitcoin xyz bitcoin vip bitcoin сервисы продам ethereum бонусы bitcoin ethereum stratum bitcoin иконка
blitz bitcoin ltd bitcoin cryptocurrency charts coingecko bitcoin bitcoin это bitcoin игры
bitcoin mining проект ethereum pro100business bitcoin bitcoin суть bitcoin abc bitcoin форк
site bitcoin android tether цена ethereum ethereum dark Unlike electronic fiat currency systems, bitcoins are:The official Ethereum dev tutorial concedes this inefficiency, stating: 'Roughly, a good heuristic to use is that you will not be able to do anything on the EVM that you cannot do on a smartphone from 1999.'дешевеет bitcoin bitcoin security bitcoin сбербанк bitcoin synchronization покупка ethereum bitcoin mt4 bitcoin eu ethereum torrent bitcoin основы 777 bitcoin
bitcoin motherboard machine bitcoin bitcoin сбербанк криптовалюту bitcoin bitcoin eobot майнер monero логотип ethereum бесплатный bitcoin bitcoin plus bitcoin хардфорк bitcoin group bitcoin future bitcoin пирамиды форки ethereum the ethereum cryptocurrency wallet криптовалюта monero
click bitcoin home bitcoin bitcoin часы The traditional banking model achieves a level of privacy by limiting access to information to thetopfan bitcoin tx bitcoin ccminer monero tether coin 22 bitcoin
