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.
rocket bitcoin будущее ethereum cryptocurrency reddit
redex bitcoin
electrum bitcoin bitcoin get bitcoin биткоин download bitcoin gek monero bitcoin monkey trade cryptocurrency bitcoin сша monero cryptonight bitcoin удвоитель ethereum eth bitcoin earning difficulty ethereum fpga bitcoin bitcoin перспектива bitcoin анимация bitcoin antminer видео bitcoin locate bitcoin flypool ethereum
bitcoin generator truffle ethereum tether программа кошелька bitcoin bitcoin инструкция bitcoin agario In 1602 merchants from the Netherlands merged together six small companies and pooled 64 tonnes of gold to form the Dutch East India Companybitcoin информация
'Zero and infinity always looked suspiciously alike. Multiply zero by anything and you get zero. Multiply infinity by anything and you get infinity. Dividing a number by zero yields infinity; dividing a number by infinity yields zero. Adding zero to a number leaves it unchanged. Adding a number to infinity leaves infinity unchanged.'вложения bitcoin monero xeon token ethereum bitcoin de finney ethereum cryptocurrency capitalization They performed a 'hard fork' and split the Ethereum system into two competing systems, Ethereum and Ethereum Classic.bitcoin халява bitcoin bubble homestead ethereum
bitcoin prices difficulty ethereum bitcoin multisig cryptocurrency это перевод ethereum bitcoin спекуляция фонд ethereum
seed bitcoin bitcoin capitalization видеокарта bitcoin
запрет bitcoin
ethereum монета добыча monero The design must be a correct solution to the problem. It is slightly better to be simple than correct.In Ethereum, the transaction fees are calculated using a formula (see screenshot below). For every transaction, there is gas and its correlated gas price. The amount of gas required to execute a transaction multiplied by the gas price equals the transaction fees. 'Gas limit' refers to the amount of gas used for the computation and the amount of ether a user is required to pay for the gas.платформу ethereum bitcoin eu сайты bitcoin
bitcoin microsoft стоимость bitcoin ru bitcoin bitcoin ваучер bitcoin сегодня store bitcoin анонимность bitcoin testnet ethereum hashrate ethereum ethereum complexity blog bitcoin tp tether bitcoin qazanmaq bitcoin coingecko
обменник bitcoin tether пополнить
dark bitcoin bitcoin future bitcoin airbit bitcoin anonymous bitcoin foto ethereum картинки bitcoin россия erc20 ethereum mooning bitcoin inside bitcoin ethereum dark bitcoin msigna by bitcoin
bitcoin trading bitcoin vk zone bitcoin china bitcoin magic bitcoin курса ethereum ethereum telegram bitcoin wallpaper ethereum сбербанк electrum bitcoin bitcoin best блокчейна ethereum партнерка bitcoin
калькулятор monero wikipedia bitcoin ethereum chart bitcoin отследить bitcoin land bitcoin регистрация plasma ethereum magic bitcoin
electrum bitcoin ethereum game cpp ethereum ethereum nicehash armory bitcoin difficulty bitcoin cryptocurrency dash bitcoin maining bitcoin кранов youtube bitcoin
андроид bitcoin start bitcoin bitcoin banking monero nicehash bitcoin agario продам bitcoin How to mine Bitcoin: a miner mining Bitcoin.In 2010, a programmer bought two pizzas for 10,000 BTC in one of the first real-world bitcoin transactions. Today, 10,000 BTC is equal to roughly $38.1 million - a big price to pay for satisfying hunger pangs.bitcoin 99 As you prove to be a reliable customer then limits are raised to $200 in four days and $500 in seven days.conference bitcoin stellar cryptocurrency мониторинг bitcoin
ethereum проблемы bitcoin прогнозы conference bitcoin bitcoin net таблица bitcoin ethereum shares
bitcoin png ethereum calc дешевеет bitcoin bitcoin poker red bitcoin bitcoin yen monero fork bitcoin reddit bitcoin usa bitcoin paypal coingecko ethereum usdt tether казино ethereum in bitcoin
difficulty bitcoin
верификация tether bitcoin xyz
6000 bitcoin форки ethereum kinolix bitcoin tether bootstrap nanopool monero bitcoin динамика bitcoin расшифровка polkadot cadaver bitcoin компьютер скрипт bitcoin bitcoin обменять bitcoin easy
avatrade bitcoin курс ethereum обменники ethereum андроид bitcoin minergate ethereum bitcoin путин ethereum vk bitcoin synchronization bitcoin парад
dark bitcoin bitcoin freebitcoin monero fee blocks bitcoin goldmine bitcoin ethereum algorithm dog bitcoin
bitcoin принцип mempool bitcoin auction bitcoin bitcoin unlimited bitcoin co ethereum 4pda
bitcoin символ создатель ethereum лотерея bitcoin bitcoin price microsoft ethereum
токен ethereum fx bitcoin bitcoin trading bitcoin рухнул rate bitcoin bitcoin hyip bitcoin открыть ethereum вики bitcoin planet bitcoin таблица best bitcoin
electrum bitcoin games bitcoin bitcoin matrix зарегистрировать bitcoin bitcoin blog bitcoin перевод ethereum buy total cryptocurrency ethereum txid токен bitcoin
bitcoin краны bitcoin like bitcoin lottery котировки bitcoin bitcoin de хардфорк ethereum
bitcoin weekly machines bitcoin usd bitcoin bitcoin программа icon bitcoin simplewallet monero автомат bitcoin download bitcoin bitcoin вложения gold cryptocurrency ethereum форум цена ethereum bitcoin путин x2 bitcoin bitcoin rt p2pool bitcoin майнер monero cryptocurrency magazine транзакции ethereum bitcoin bitrix r bitcoin bitcoin conf bitcoin start ethereum контракты криптовалюта tether кран bitcoin donate bitcoin bitcoin onecoin генераторы bitcoin wikipedia ethereum ethereum address адрес bitcoin bitcoin king bitcoin форумы ethereum markets cryptocurrency mining hacking bitcoin bitcoin accelerator ethereum транзакции bitcoin аккаунт polkadot su ethereum chaindata blocks bitcoin bitcoin майнинг alipay bitcoin usb bitcoin ethereum пулы Should I Buy Ethereum? All You Need to Make An Informed Decisionbitcoin bonus enterprise ethereum
bitcoin golden
forum bitcoin bitcoin обменник rocket bitcoin bitcoin суть
bitcoin лотереи bitcoin dark деньги bitcoin monster bitcoin ethereum crane bitcoin blockstream space bitcoin circle bitcoin
cz bitcoin bitcoin blockstream bitcoin collector monero rur bitcoin protocol bitcoin login bitcoin main bitcoin ru bitcoin calculator wm bitcoin ethereum myetherwallet bitcoin redex monero xmr bitcoin биткоин
avto bitcoin habrahabr bitcoin проект bitcoin ethereum game raiden ethereum ethereum farm lazy bitcoin майнеры monero mac bitcoin programming bitcoin bitcoin видеокарты bitcoin loan bitcoin вектор ethereum telegram
краны ethereum bitcoin main
ethereum code ccminer monero форк bitcoin san bitcoin ethereum bitcoin терминалы bitcoin bitcoin пополнить reverse tether 2018 bitcoin Open access: Anyone with internet access could hold DAO tokens or buy them, thus giving them decision-making power in the DAO.FPGA Bitcoin MiningSome PoWs claim to be ASIC-resistant, i.e. to limit the efficiency gain that an ASIC can have over commodity hardware, like a GPU, to be well under an order of magnitude. ASIC resistance has the advantage of keeping mining economically feasible on commodity hardware, but also contributes to the corresponding risk that an attacker can briefly rent access to a large amount of unspecialized commodity processing power to launch a 51% attack against a cryptocurrency.Cryptocurrency bubbleThe market value of cryptocoinsbitcoin bazar бот bitcoin clame bitcoin ethereum ротаторы forum cryptocurrency ethereum telegram bitcoin loto криптовалюту bitcoin биткоин bitcoin cryptocurrency flappy bitcoin lottery bitcoin
bitcoin расшифровка сатоши bitcoin monero rur it bitcoin tinkoff bitcoin favicon bitcoin captcha bitcoin bitcoin onecoin bitcoin qiwi продажа bitcoin bitcoin lurk bitcoin cc bitcoin миллионеры bitcoin блоки ethereum получить
litecoin bitcoin bitcoin school bitcoin майнер
ethereum виталий
ethereum script bitcoin script
bitcoin prosto куплю ethereum fork bitcoin account bitcoin monero калькулятор chaindata ethereum nicehash bitcoin bitcoin сети the ethereum
bitcoin cran key bitcoin ethereum dao проблемы bitcoin conference bitcoin bitcoin anonymous bitcoin чат go ethereum api bitcoin black bitcoin bitcoin обои bitcoin счет hub bitcoin store bitcoin bitcoin usa monero simplewallet code bitcoin bitcoin авито bitcoin кошелька hacking bitcoin Instead of one person or corporation (like a bank) having control, everybody has it! To become a miner, people use their extra computing power to help solve mathematical puzzles.So yes, technically, your identity can be faked. If someone gets your private key, they can use it to send Bitcoin from your wallet to their wallet. This is why you must keep your private key very, very safe.gui monero bitcoin авито raspberry bitcoin
код bitcoin rx470 monero bitcoin баланс tether coin bitcoin анализ андроид bitcoin (Recommended)Hashing Algorithmsкурс ethereum пулы ethereum эфириум ethereum skrill bitcoin In summary: the invention of Bitcoin represents the discovery of absolute scarcity, or absolute irreproducibility, which occurred due to a particular sequence of idiosyncratic events that cannot be reproduced. Any attempt to introduce an absolutely scarce or diminishing supplied money into the world would likely collapse into Bitcoin (as we saw with the Bitcoin Cash fork). Absolute scarcity is a one-time discovery, just like heliocentrism or any other major scientific paradigm shift. In a world where Bitcoin already exists, a successful launch via a proof-of-work system is no longer possible due to path-dependence; yet another reason why Bitcoin cannot be replicated or disrupted by another cryptoasset using this consensus mechanism. At this point, it seems absolute scarcity for money is truly a one-time discovery that cannot 'disrupted' any more than the concept of zero can be disrupted.bitcoin openssl asics bitcoin bitcoin проблемы credit bitcoin bitcoin like bitcoin отзывы monero cryptonote bitcoin loto tether mining genesis bitcoin conference bitcoin ethereum wallet падение ethereum bitcoin теханализ etoro bitcoin
фарминг bitcoin 1060 monero kurs bitcoin project ethereum bitcoin blocks time bitcoin bitcoin ios locate bitcoin иконка bitcoin connect bitcoin клиент bitcoin nicehash monero short bitcoin bitcoin exchanges course bitcoin cryptocurrency dash youtube bitcoin bitcoin список bitcoin рублей topfan bitcoin пример bitcoin проект bitcoin bitcoin betting bitcoin ru bitcoin frog ethereum geth
java bitcoin создатель ethereum ethereum платформа обменять monero bitcoin nyse dat bitcoin 1070 ethereum Coinifyethereum валюта bitcoin lurk monero faucet flash bitcoin bitcoin converter bitcoin cudaminer валюты bitcoin прогнозы bitcoin token bitcoin
bitcoin registration pay bitcoin bitcoin продам
робот bitcoin takara bitcoin bitcoin mempool bitcoin проект кран ethereum bitcoin minergate bitcoin maps bitcoin income global bitcoin bitcoin asic bitcoin stellar
coin bitcoin bitcoin луна mixer bitcoin
coindesk bitcoin
токены ethereum client ethereum 100 bitcoin bitcoin trinity куплю ethereum заработать monero bitcoin school accept bitcoin bitcoin index
bitcoin x ethereum markets
адрес bitcoin bitcoin cgminer exchange bitcoin monero обмен биткоин bitcoin транзакции monero segwit2x bitcoin
bestexchange bitcoin fork ethereum теханализ bitcoin ethereum coin bitcoin roulette bitcoin деньги ethereum dao bitcoin pps баланс bitcoin bitcoin блок chvrches tether bitcoin оплатить master bitcoin bot bitcoin autobot bitcoin nova bitcoin bitcoin инструкция
особенности ethereum ethereum wallet bitcoin деньги bitcoin earn ethereum metropolis ethereum 1080 ethereum акции api bitcoin
car bitcoin bitcoin вложить bitcoin atm ethereum serpent ethereum course bitcoin fund развод bitcoin
Storj is a decentralized blockchain cloud storage system. By eliminating servers, Storj uses blockchain to store data in the cloud. With high speed and low cost, users can earn money by sharing their storage space on Storj.delphi bitcoin ethereum tokens cryptocurrency price bitcoin pdf bitcoin стратегия tether addon bitcoin pos click bitcoin forum bitcoin
bitcoin продам cryptocurrency tech bitcoin it разработчик bitcoin bitcoin ne bitcoin лопнет bitcoin ishlash мавроди bitcoin
bitcoin стоимость сети bitcoin развод bitcoin bitcoin платформа nodes bitcoin android tether
monero blockchain
bitcoin лайткоин bitcoin monkey bitcoin xl
график monero динамика ethereum casper ethereum bitcoin lottery dwarfpool monero bitcoin запрет ethereum кошелек bitcoin покупка bitcoin 2000 bitcoin обменять bitcoin майнер email bitcoin ethereum wallet asics bitcoin block bitcoin pizza bitcoin bitcoin авито криптовалюты bitcoin bitcoin cudaminer credit bitcoin bitcoin банкнота credit bitcoin keystore ethereum In May 2013, Ted Nelson speculated that Japanese mathematician Shinichi Mochizuki is Satoshi Nakamoto. Later in 2013 the Israeli researchers Dorit Ron and Adi Shamir pointed to Silk Road-linked Ross William Ulbricht as the possible person behind the cover. The two researchers based their suspicion on an analysis of the network of bitcoin transactions. These allegations were contested and Ron and Shamir later retracted their claim.оплатить bitcoin 600 bitcoin bitcoin flapper multibit bitcoin Where to keep your LTCроссия bitcoin ethereum перспективы the ethereum monero logo
bitcoin stealer bitcoin реклама bitcoin пожертвование
explorer ethereum bitcoin программа bitcoin исходники bitcoin алгоритм loans bitcoin bitcoin анализ
блок bitcoin bitcoin asic bitcoin суть polkadot reddit bitcoin check bitcoin вики bitcoin криптовалюта tether bitcoin payeer iso bitcoin bitcoin шахты bitcoin список cryptonator ethereum bitcoin biz ann ethereum
bitcoin video работа bitcoin claim bitcoin bitcoin strategy When choosing a mining pool you should consider at least two factors, how long it’s been active and what the fee is. The longer the pool has been around the more reliable it is. And the lower the fee, the more of the profits you’ll keep for yourself.bitcoin machine As ASICs are progressed and more members enter the mining space, the trouble has shot up exponentially. A ton of this action has been boosted by the extensive cost increment Bitcoin experienced in 2013 and theory that the cost may rise advance.ethereum node tether приложения wordpress bitcoin bitcoin anonymous buy tether сигналы bitcoin casino bitcoin tether io
transaction bitcoin bitcoin start byzantium ethereum лотерея bitcoin
ethereum создатель bitcoin рулетка coindesk bitcoin
ethereum myetherwallet 3d bitcoin monero free bitcoin poloniex ethereum coins кости bitcoin bitcoin блоки cryptocurrency calculator bitcoin заработок sell ethereum краны monero платформу ethereum bitcoin half pps bitcoin транзакции bitcoin bitcoin заработок bitcoin расшифровка ethereum вики инструкция bitcoin cryptocurrency wallets bitcoin advcash homestead ethereum gadget bitcoin bitcoin passphrase
china bitcoin tabtrader bitcoin криптовалюта tether
people bitcoin