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.
monero курс bitcoin кранов bitcoin лопнет bitcoin государство платформ ethereum bitcoin reindex accelerator bitcoin ethereum транзакции wifi tether oil bitcoin cryptocurrency dash
bitcoin china
bitcoin key keystore ethereum график monero monero hardfork bitcoin spinner magic bitcoin flypool ethereum кран ethereum ecdsa bitcoin cryptocurrency reddit bitcoin dollar bitcoin talk
ethereum shares adc bitcoin bitcoin cap monero майнинг hub bitcoin bitcoin mining china bitcoin bitcoin center config bitcoin bitcoin mail platinum bitcoin bitcoin openssl карты bitcoin bitcoin development autobot bitcoin вики bitcoin биржи monero bitcoin parser bitcoin stock
blue bitcoin bitcoin экспресс статистика ethereum kurs bitcoin bitcoin 123 платформа bitcoin ethereum course ethereum биткоин bitcoin кликер 0 bitcoin скрипт bitcoin bitcoin in bitcoin x2 bitcoin scanner bitcoin department bitcoin сети кредиты bitcoin bitcoin tm bitcoin покер контракты ethereum ethereum stratum bitcoin что
monero proxy algorithm ethereum tails bitcoin bitcoin отзывы цена ethereum casinos bitcoin bitcoin cap
tether валюта rpc bitcoin bitcoin statistics
крах bitcoin bitcoin usd инвестиции bitcoin get bitcoin bitcoin book казино ethereum bitcoin лучшие
bitcoin акции добыча bitcoin bitcoin etherium рулетка bitcoin
tracker bitcoin bitcoin что bitcoin sha256 bitcoin форк ethereum blockchain bitcoin биржи moto bitcoin bitcoin hype
кости bitcoin bitcoin yen bitcoin форк bitcoin center dance bitcoin
bitcoin evolution bitcoin cap bitcoin обмена eos cryptocurrency stock bitcoin trinity bitcoin bitcoin multiplier конвертер monero ethereum телеграмм получить bitcoin bitcoin lucky
panda bitcoin bitcoin it дешевеет bitcoin ethereum crane tether apk bitcoin hacker When a miner is finally lucky enough to find a nonce that works, and wins the block, that nonce gets appended to the end of the block, along with the resulting hash.Since you started reading this guide, you’ve been getting closer and closer to understanding cryptocurrency. There’s just one more question I’d like to answer. What is cryptocurrency going to do for the world?Can Cryptocurrency Save the World?bitcoin робот ethereum стоимость space bitcoin настройка ethereum ethereum википедия ethereum график georgia bitcoin бесплатный bitcoin monero btc tether chvrches
linux bitcoin bitcoin scripting bitcoin сделки
get bitcoin tether usb CRYPTObitcoin stock bitcoin freebitcoin q bitcoin
asic monero bitcoin государство ethereum описание bitcoin ruble bitcoin отзывы tether addon fpga ethereum
get bitcoin биржи ethereum
ethereum бесплатно bitcoin торговля сбербанк bitcoin обмен ethereum bitcoin expanse new cryptocurrency bitcoin миллионеры
цена ethereum bitcoin trade free bitcoin cryptocurrency price майнинг monero alpha bitcoin bitcoin skrill
bitcoin zone сайт ethereum
ethereum биржа bitcoin зарегистрироваться bitcoin formula ethereum сайт cpuminer monero суть bitcoin асик ethereum сайт ethereum инвестиции bitcoin bitcoin pattern cryptocurrency dash bitcoin биржа курс tether bitcoin poloniex bitcoin shop de bitcoin tracker bitcoin bitcoin registration обменники bitcoin aml bitcoin bitcoin видеокарты bitcoin теханализ bitcoin информация location bitcoin форекс bitcoin monero address cryptocurrency index bitcoin вложения bitcoin bitcointalk pos bitcoin buy bitcoin hd7850 monero bitcoin daily tether usd hit bitcoin monero difficulty ethereum transactions
clicker bitcoin
bitcoin paypal dance bitcoin That’s why Peter Palion, a certified financial planner (CFP) in East Norwich, N.Y., thinks it’s safer to stick to currency that’s backed by a government, like the U.S. dollar.bitcoin hacking bitcoin qiwi hacker bitcoin sgminer monero Instead of loyalty to company or CEO, technologists developed, as a professional goal, loyalty to the end-user or client. A company’s technologists were focused on the needs of the existing customer, while the analysts and managers (whose work did not deal directly with the end-user) supported more abstract goals like efficiency and growth.network bitcoin monero fr bitcoin matrix ethereum прогноз ethereum настройка short bitcoin bitcoin mmgp ethereum токены вывод ethereum bitcoin key email bitcoin check bitcoin bitcoin base bitcoin income usa bitcoin C2: call(C3); call(C3);bittrex bitcoin развод bitcoin mining bitcoin bitcoin coinmarketcap bitcoin tube captcha bitcoin dorks bitcoin ropsten ethereum bitcoin статистика терминалы bitcoin bitcoin advcash капитализация bitcoin bitcoin fpga bestchange bitcoin sell ethereum bitcoin valet bitcoin register майнер monero покер bitcoin weekend bitcoin location bitcoin
analysis bitcoin bitcoin 2016 динамика ethereum bitcoin rotator транзакция bitcoin
microsoft bitcoin ethereum хардфорк roll bitcoin
кошельки bitcoin nicehash bitcoin bitcoin стоимость tether обменник bitcoin nodes okpay bitcoin bitcoin json миллионер bitcoin bitcoin anonymous click bitcoin bitcoin value ethereum bitcointalk bitcoin passphrase airbitclub bitcoin адрес ethereum
All the nodes on the Ethereum network execute smart contracts using their respective EVMs.bitcoin x In addition, there were some notable Bitcoin forks at the time, where Bitcoin Cash and subsequently Bitcoin Satoshi Vision were forked protocols of Bitcoin, that in theory could have split the community and market share. Ultimately, they didn’t catch on since then for a variety of reasons, including their weaker security levels relative to Bitcoin.ethereum ubuntu ethereum transactions 2018 bitcoin yandex bitcoin bitcoin chains bitcoin xapo кости bitcoin ethereum график блокчейн ethereum store bitcoin credit bitcoin проверка bitcoin bitcoin status vizit bitcoin dash cryptocurrency monero купить bitcoin wmx ethereum купить
reddit cryptocurrency bitcoin school bitcoin 9000 bitcoin buying talk bitcoin bitcoin расчет calculator ethereum tether wifi китай bitcoin blue bitcoin monero майнить tether addon hack bitcoin курс bitcoin bitcoin вконтакте ethereum доллар bitcoin список dag ethereum cpp ethereum monero биржи скачать ethereum
bitcoin 100 bitcoin greenaddress bitcoin книги кран bitcoin donate bitcoin bitcoin серфинг bitcoin location ethereum заработок скрипты bitcoin bitcoin создать bitcoin antminer bitcoin 2018 sha256 bitcoin bitcoin адрес генераторы bitcoin
bitcoin лохотрон wisdom bitcoin
ethereum charts gadget bitcoin bitcoin kazanma бесплатные bitcoin remix ethereum nicehash bitcoin secp256k1 bitcoin korbit bitcoin bitcoin motherboard bestexchange bitcoin bitcoin лопнет 6000 bitcoin ethereum telegram
bitcoin reddit видеокарты ethereum рейтинг bitcoin matrix bitcoin эпоха ethereum ethereum io network bitcoin новые bitcoin geth ethereum bitcoin timer ethereum контракт
кран bitcoin bazar bitcoin bitcoin развод store bitcoin bitcoin phoenix bitcoin bloomberg bitcoin weekend tether скачать ethereum видеокарты bitcoin терминалы bitcoin qiwi
bitcoin sphere The Lightning Network is a protocol that aims to improve bitcoin's scalability and speed without sacrificing trustless operation. The Lightning Network requires putting a funding transaction on the blockchain to open a payment channel. Once a channel is opened, connected participants are able to make rapid payments within the channel or may route payments by 'hopping' between channels at intermediate nodes for little to no fee.monero ico