Bitcoin : What is the intrinsic value of Bitcoin? of gold?
I’m having quite a debate on this issue so here’s my opinion: Gold is money as it fulfills all three criteria: Store of value, unit of accounting and medium of exchange. Intrinsic value is solely due to its its practical applications in the real world (in electronics, aerospace etc…) Perceived value is due to our society’s consensus that due to gold rarity, cost of mining and shiny look, it is valuable. Thus intrinsic value + perceived value= price of gold.
For Bitcoin, it has no intrinsic value. The ability to transact in a cheap, fast and immutable (ideal scenario) way is due to blockchain technology, not the coin itself. Similar to gold, perceived value lies in the consensus that the society has to this question ‘how valuable should Bitcoin be?’ This perceived value will be influenced by the fact that Bitcoin is cheap to use, fast to transact and is anonymous and secure.
PS: Is this correct-> Currency is a representation of money that need not hold any intrinsic value.
Bitcoin is a distributed, worldwide, decentralized digital money. Bitcoins are issued and managed without any central authority.
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