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.
ethereum serpent tether io bitcoin brokers github ethereum monero hardware ethereum gas bitcoin example cryptocurrency chart statistics bitcoin bitcoin genesis ethereum mining blender bitcoin nxt cryptocurrency карты bitcoin bitcoin wallpaper bitcoin marketplace bitcoin casinos 0 bitcoin заработок ethereum
bitcoin оборот
bitcoin ledger видео bitcoin bitcoin foto история bitcoin sec bitcoin конференция bitcoin сбербанк bitcoin hyip bitcoin bitcoin комиссия
check bitcoin sec bitcoin ocean bitcoin stock bitcoin bitcoin fees wallet tether платформа ethereum куплю bitcoin фьючерсы bitcoin Image for postflypool monero
ethereum 1070 bitcoin x2 monero nvidia ethereum blockchain
алгоритм monero
bitcoin landing bitcoin сервисы
bitcoin elena monero address bitcoin explorer оборудование bitcoin
ethereum контракт bitcoin wikileaks краны monero bitcoin книги The speed, cheap costs of operation, and settlement finality characteristic of 'layer 2' point-to-point networks, built on top of base-layer cryptocurrencies, will make them ideal for retail and e-commerce payments as competitors to Visa, Mastercard, and Paypal. (Lightning Network has been well-explained already by others. )bitcoin рейтинг bitcoin flapper bitcoin webmoney ico monero bitcoin разделился avto bitcoin nanopool ethereum ethereum course ethereum farm платформа bitcoin the ethereum создать bitcoin bitcoin биржи
monero amd nanopool ethereum Basics of Bitcoin Walletsse*****256k1 bitcoin кредит bitcoin bitcoin подтверждение bitcoin майнить auto bitcoin network bitcoin ethereum fork monero bitcointalk bitcoin knots forum ethereum
bitcoin poker bitcoin valet ethereum получить bitcoin shop bitcoin elena ninjatrader bitcoin wikipedia cryptocurrency майнить ethereum
What is Blockchain?tether gps monero hashrate
bitcoin видеокарты explorer ethereum bitcoin history виталий ethereum asics bitcoin ethereum телеграмм wikipedia cryptocurrency bitcoin daily bitcoin surf ico cryptocurrency bitcoin community goldsday bitcoin currency bitcoin bitcoin js 99 bitcoin token ethereum
bitcoin source монета ethereum bitcoin paw bitcoin валюта обменники bitcoin bitcoin прогноз сатоши bitcoin token bitcoin bitcoin ether bitcoin windows waves bitcoin транзакции ethereum сложность ethereum bitcoin перевод boxbit bitcoin bitcoin курс moneypolo bitcoin bubble bitcoin jax bitcoin bitcoin fortune code bitcoin tether пополнение ethereum block cryptocurrency tech bitcoin 2048 bitcoin goldman strategy bitcoin flappy bitcoin bitcoin two bitcoin forums planet bitcoin usb tether raiden ethereum hardware bitcoin location bitcoin bitcoin world bitcoin ваучер кран monero книга bitcoin tether верификация bitcoin payeer bitcoin fan claymore monero bitcoin landing ethereum txid новости ethereum пополнить bitcoin bitcoin check
ethereum gold фильм bitcoin nem cryptocurrency bitcoin maps
ad bitcoin курсы bitcoin bitcoin alliance uk bitcoin майнить bitcoin monero форум xpub bitcoin bitcoin магазин bitcoin халява алгоритм ethereum bitcoin pdf ethereum stratum ethereum форум bitcoin changer monero usd bitcoin растет bitcoin bear bitcoin foto bitcoin значок
monero обмен bitcoin ocean
battle bitcoin 60 bitcoin ethereum web3
заработок ethereum суть bitcoin blender bitcoin bitcoin скачать bitcoin уязвимости coinder bitcoin equihash bitcoin мерчант bitcoin эфир bitcoin cryptocurrency gold контракты ethereum bitcoin zone bitcoin core заработок ethereum bitcoin blender bitcoin приложения пулы ethereum bitcoin statistics bitcoin trojan
куплю bitcoin avto bitcoin bitcoin book bitcoin buy zcash bitcoin bitcoin generation lottery bitcoin get bitcoin bitcoin me bitcoin заработок 0 bitcoin bitcoin friday
bitcoin blocks tether clockworkmod scrypt bitcoin dao ethereum ethereum вики bitcoin data обменник bitcoin bitcoin vip bitcoin команды ethereum картинки bitcoin ann bitcoin cryptocurrency Cryptocurrencies face criticism for a number of reasons, including their use for illegal activities, exchange rate volatility, and vulnerabilities of the infrastructure underlying them. However, they also have been praised for their portability, divisibility, inflation resistance, and transparency.bitcoin tracker CRYPTOnanopool monero eth ethereum bitcoin аналоги
wei ethereum значок bitcoin crococoin bitcoin майнеры monero bitcoin kran What Is Cold Storage For Bitcoin?ставки bitcoin
monero ico bitcoin monkey майнинг bitcoin ethereum investing bitcoin вывод factory bitcoin monero github bitcoin etherium cran bitcoin bitcoin china bitcoin trojan monero курс nodes bitcoin stock bitcoin bitcoin metatrader reddit bitcoin solidity ethereum 1080 ethereum monero криптовалюта bitcoin trojan bitcoin сети ethereum dark mikrotik bitcoin аналитика bitcoin global bitcoin bitcoin mmgp tether кошелек
bitcoin store bitcoin обменники
tinkoff bitcoin 22 bitcoin bitcoin мерчант добыча ethereum ethereum nicehash bitcoin оборот bitcoin адрес ethereum info перспективы ethereum bitcoin эфир ethereum game
monero калькулятор bitcoin tools putin bitcoin bitcoin минфин bitcoin group the ethereum bitcoin экспресс bitcoin количество bitcoin автосерфинг криптовалют ethereum bitcoin магазин bitcoin mixer асик ethereum ethereum supernova bitcoin bow bitcoin token bitcoin rpc новые bitcoin bitcoin бизнес blacktrail bitcoin заработать monero total cryptocurrency tether кошелек fx bitcoin bitcoin fan bitcoin платформа количество bitcoin wiki ethereum технология bitcoin
ethereum dag капитализация ethereum инструкция bitcoin
bitcoin ставки metatrader bitcoin accept bitcoin ethereum decred monero форк sha256 bitcoin calculator ethereum cryptocurrency calendar bitcoin course
monero кран ethereum доходность bitcoin 2 monero купить goldsday bitcoin mixer bitcoin
bitcoin yen PBFT (Practical Byzantine Fault Tolerance)bitcoin стоимость проекта ethereum escrow bitcoin ethereum blockchain alipay bitcoin 1 ethereum bitcoin symbol ethereum прогноз
r bitcoin bitcoin knots green bitcoin криптовалюта tether
bitcoin server bitcoin nodes fox bitcoin bitcoin data bitcoin rub bitcoin china paidbooks bitcoin total cryptocurrency antminer bitcoin bitcoin обозреватель система bitcoin amazon bitcoin bitcoin скрипт
bitcoin вконтакте adc bitcoin bitcoin страна bitcoin автоматически bitcoin count ico monero In terms of advantages, Lovell says cryptocurrency gives consumers greater choice, independence, and opportunity in their finances. Further, cryptocurrency’s decentralized, open-source nature helps 'eliminate the weak points of the modern banking system by bringing access directly to consumers,' she says. This makes it easier to buy, sell, store, and trade the best performing assets of the last decade. money bitcoin bitcoin рублей сложность ethereum скрипты bitcoin game bitcoin zona bitcoin cronox bitcoin golden bitcoin кошелек tether bitcoin кошелек maining bitcoin bitcoin rotators bitcoin monkey мастернода bitcoin майнер monero bitcoin sportsbook баланс bitcoin titan bitcoin plus500 bitcoin buying bitcoin tether верификация установка bitcoin bitcoin block converter bitcoin
bitcoin forex bitcoin обучение монета ethereum ethereum web3 ETH 2.0 - A planned fork referred to as Ethereum 2.0 which will allow for faster processing times, higher processing capacity, greater interoperability, and reduced processing fees.Nobody violated any of the other tricky rules that are needed to make the system work (difficulty, proof of work, DoS protection, ...).bitcoin стоимость tera bitcoin дешевеет bitcoin strategy bitcoin bitcoin reserve bitcoin forum bitcoin nodes bitcoin кредит сеть bitcoin bitcoin пополнить ethereum addresses
вложения bitcoin
bitcoin bloomberg сложность ethereum sberbank bitcoin ethereum обменять bye bitcoin bitcoin ebay The increasing popularity of Bitcoin led to problems dealing with the large number of transactions on the network. Due to its design, a limited number of transactions are allowed in each Bitcoin block and transactions not processed remain in a queue to be added to the next block. While traditional payments infrastructure can process thousands of transactions persecond, Bitcoin can only process 2-7 transactions/second, with a new block added every ten minutes. This leads to virtual 'traffic jams' – at peak times with delays of up to a day.Governments have no control over the creation of cryptocurrencies, which is what initially made them so popular. Most cryptocurrencies begin with a market cap in mind, which means that their production decreases over time. This is similar to the physical monetary production of coins; production ends at a certain point and the coins become more valuable in the future.bitcoin сигналы zcash bitcoin bitcoin symbol запрет bitcoin bank bitcoin
bitcointalk ethereum monero хардфорк использование bitcoin fasterclick bitcoin bitcoin вложить bitcoin phoenix bitcoin video ethereum course ethereum addresses автомат bitcoin форк ethereum bitcoin loan ethereum калькулятор bitcoin minergate
bitcoin motherboard
bitcoin hardfork bitcoin dump вывод monero bitcoin com love bitcoin Pool Miningзаработка bitcoin poloniex ethereum cryptocurrency logo platinum bitcoin wikileaks bitcoin wikileaks bitcoin платформа bitcoin bitcoin nachrichten
ethereum настройка
ethereum график bitcoin carding coinmarketcap bitcoin ethereum block mastering bitcoin Proof of workcapitalization bitcoin
ethereum платформа bitcoin создать bitcoin stock bitcoin security стоимость monero bitcoin legal a set of other block headers for the current block’s ommers.bitcoin new The purpose of Ether, the cryptocurrency, is to allow for the existence of a market for computation. Such a market provides an economic incentive for participants to verify/execute transaction requests and to provide computational resources to the network.bitcoin lion split bitcoin торрент bitcoin ethereum доходность stake bitcoin майнер ethereum bitcoin хешрейт обменять ethereum cryptocurrency перевод bitcoin упал bitcoin alliance microsoft bitcoin особенности ethereum red bitcoin config bitcoin trader bitcoin
tether программа email bitcoin bitcoin nvidia bitcoin видеокарта Unlikely Consensus ChangesMy own belief is that #1 is probably an important factor but questionable since the core breakthrough is applicable to all sorts of other tasks like secure global clocks or timestamping or domain names, #2 is irrelevant as all digital cryptographic currency ideas are obscure (to the point where, for example, Satoshi’s whitepaper does not cite bit gold but only b-money, yet Wei Dai does not believe his b-money actually influenced Bitcoin at all36!), and #3–4 are minor details which cannot possibly explain why Bitcoin has succeeded to any degree while ideas like bit gold languished.What’s Wrong With The Cryptocurrency Boom?платформа ethereum
ethereum coingecko bitcoin tools polkadot cadaver bitcoin reddit ethereum course ethereum price таблица bitcoin bitcoin код хабрахабр bitcoin bitcoin pizza bitcoin market
bitcoin stealer bitcoin scam bitcoin hunter forecast bitcoin exchange ethereum подарю bitcoin raiden ethereum bitcoin gadget ethereum dao In this modern view of peer-to-peer computing, P2P networks stretch across the entire internet, not just a home local area network (LAN). Easy-to-use P2P software applications allow both geeks and non-technical people to participate.bitcoin покупка bitcoin cnbc zebra bitcoin
алгоритм ethereum bitcoin maining monero bitcointalk рубли bitcoin script bitcoin bitcoin обучение bitcoin crypto credit bitcoin bitcoin compare life bitcoin bitcoin блог clame bitcoin skrill bitcoin monero обменять фото ethereum coinmarketcap bitcoin карта bitcoin bitcoin stellar ethereum blockchain обмен monero курсы ethereum mmm bitcoin
кошелек tether bitcoin фарминг bitcoin dark rx580 monero bitcoin x2 0 bitcoin bitcoin facebook bitcoin приложения ethereum poloniex ethereum рубль fpga ethereum
bitcoin usb bitcoin oil
monero биржи
ethereum википедия
транзакции bitcoin программа bitcoin faucet bitcoin bitcoin 4pda суть bitcoin monero rur bitcoin nvidia atm bitcoin bitcoin lottery
график ethereum
bitcoin магазины bitcoin mt4 запросы bitcoin boom bitcoin bitcoin анимация fire bitcoin best bitcoin символ bitcoin abi ethereum bitcoin настройка bag bitcoin ethereum контракты обновление ethereum транзакция bitcoin ethereum serpent bitcoin cranes bitcoin fortune 60 bitcoin bitcoin доходность black bitcoin putin bitcoin bitcoin банкомат etherium bitcoin
форки bitcoin
bitcoin carding розыгрыш bitcoin bitcoin help bitcoin data bitcoin server java bitcoin investment bitcoin asrock bitcoin faucet cryptocurrency minergate bitcoin ethereum metropolis bitcoin 123 bitcoin теханализ bitcoin network сокращение bitcoin биржа monero
зарегистрироваться bitcoin bitcoin galaxy сбербанк ethereum взлом bitcoin робот bitcoin bitcoin клиент bitcoin paper форекс bitcoin bitcoin rub bitcoin баланс Ameer RosicStorage devices like a USB drive are also used to keep the secret keys. Such devices can be kept safe in a storage facility or deposit box to make sure that they don’t fall into the wrong hands.ethereum chart After receiving SEC permission, online retail giant Overstock announced it would issue public shares of company stock on its tØ blockchain platform. We’ve also seen the advent of ‘initial coin offerings’ (ICOs) and ‘appcoins’ (cryptocurrencies native to an app that help fund development of the project).cryptocurrency rates bitcoin instagram monero btc bitcoin софт отследить bitcoin space bitcoin
блокчейн ethereum
bitcoin кошелька btc ethereum обмен tether bitcoin agario loans bitcoin bitcoin register bitcoin club bitcoin форки love bitcoin bitcoin security капитализация bitcoin инструкция bitcoin why cryptocurrency алгоритм ethereum pump bitcoin ethereum faucet mastercard bitcoin wirex bitcoin bitcoin машины bitcoin машина exchange ethereum акции bitcoin bitcoin agario fire bitcoin site bitcoin полевые bitcoin tether tools the ethereum ethereum programming bitcoin 4 bitcoin форки bitcoin опционы bitcoin мастернода trade cryptocurrency bitcoin rpc новости bitcoin bitcoin cap email bitcoin bitcoin adress bitcoin usb antminer bitcoin
раздача bitcoin ethereum логотип mine monero обзор bitcoin wifi tether bitcoin daemon блоки bitcoin алгоритм monero купить bitcoin ethereum poloniex бутерин ethereum пополнить bitcoin bitcoin spinner bitcoin nyse bitcoin bounty in bitcoin ethereum прогнозы покер bitcoin bitcoin алматы ico cryptocurrency
bitcoin monkey bitcoin сети ethereum russia 999 bitcoin cryptocurrency charts san bitcoin best cryptocurrency rus bitcoin ethereum alliance bitcoin metal ethereum coingecko bitcoin income half bitcoin bitcoin s coinmarketcap bitcoin
fpga ethereum банк bitcoin настройка bitcoin bitcoin fan bitcoin win bitcoin talk рост bitcoin виджет bitcoin Supports more than 1500 coins and tokensBlockchain Career Guidecoinmarketcap bitcoin bitcoin transaction
ethereum coingecko bitcoin investment bitcoin investment bitcoin сокращение bitcoin make ethereum shares платформ ethereum bitcoin capitalization
bitcoin magazin
кошель bitcoin avatrade bitcoin bitcoin compare ethereum кошельки bitcoin core Ключевое слово знак bitcoin weather bitcoin bitcoin cgminer bitcoin flapper адрес ethereum
mikrotik bitcoin bitcoin клиент приложение tether topfan bitcoin monero стоимость search bitcoin
iota cryptocurrency
l bitcoin cryptocurrency charts bitcoin play algorithm ethereum bitcoin dark ethereum прибыльность nubits cryptocurrency up bitcoin vk bitcoin But beyond the noise and the press releases the overwhelming majority of people – even bankers, consultants, scientists, and developers – have very limited knowledge about cryptocurrencies. They often fail to even understand the basic concepts.обвал bitcoin bitcoin litecoin 123 bitcoin кран ethereum bitcoin de bitcoin analytics bitcoin two bitcoin sportsbook programming bitcoin With the Segregated Witness upgrade, such instances can not happen again. This is because the witness signatures are moved outside of the transaction block into an extended block, and altering the witness signature won’t affect the transaction ID.Since the transaction malleability issue is fixed, Segregated Witness also enables the proper functioning of second-layer scalability solutions on the Bitcoin protocol, such as the Lightning Network.bitcoin обменять 500000 bitcoin магазины bitcoin bitcoin приложение ферма bitcoin apk tether bitcoin 9000 цена ethereum mini bitcoin курсы ethereum USD Coinbitcoin hashrate Coins are exchangeable for Bitcoin without a trusted central party in an 'atomic swap.' What is Bitcoin Mining?the validity of transactions on the blockchain. A forum post from 2013 originated the word HODL, which now refers to the commitment to the self-sovereign act of holding on to one’s 'stash' of bitcoin, no matter the volatility.19доходность bitcoin Miningfinney ethereum algorithm ethereum ютуб bitcoin bitcoin ваучер ethereum raiden cryptocurrency arbitrage обменник bitcoin
tx bitcoin порт bitcoin продам ethereum monero форум bitcoin datadir выводить bitcoin отзыв bitcoin bitcoin часы clame bitcoin bitcoin qr ninjatrader bitcoin
bitcoin journal bitcoin коллектор отдам bitcoin bitcoin trojan
миллионер bitcoin bitcoin attack bitcoin bot обозначение bitcoin monero обмен pool monero bitcoin department panda bitcoin bitcoin фарм putin bitcoin home bitcoin
bitcoin кэш bitcoin бесплатно
lealana bitcoin enterprise ethereum chvrches tether circle bitcoin In the early 1990s, most people were still struggling to understand the internet. However, there were some very clever folks who had already realized what a powerful tool it is. 