Bitcoin has intrinsic value: simply explained.

All economic value is subjective, something is only ever worth what value someone else is willing to exchange for it.

So where is this economic value fundamentally derived from? What prerequisites do humans require before they ascribe economic value to something?

The answer is utility and scarcity. Simply put, everything that has utility and scarcity has intrinsic value. Anything that has utility but lacks scarcity (is abundant) has no intrinsic value, and anything that is scarce but lacks utility has no intrinsic value. For something to be ascribed with intrinsic value it needs to have both utility and scarcity.

We can look at all of the worlds valuable objects on a scale of relative scarcity and utility, the highest value being ascribed to the most useful and most scarce items and the lowest value being ascribed to the least useful and least scarce items. Things with no utility or no scarcity having no economic value.

Bitcoin has the most predictable mathematically-provable strictest scarcity ever concieved, and has the potential to be the most useful form of money ever invented (already for some like myself it is a far more useful means of storing and transferring value than a bank account) therefore potentially making it one of the worlds most valuable objects.

Scarcity is a done deal, and every day that passes with every newly added user of the network, new developer, new liquidity, new app, bitcoins utility increases exponentially.

Bitcoin has intrinsic value because it holds both required properties of scarcity and utility, and with every passing day this intrinsic value grows.

Submitted July 13, 2019 at 09:16PM by slvbtc https://ift.tt/2Y68ADi