Hi ! Please join our telegram HERE dollar

Bitcoin HAS intrinsic value. Easy explanation.

The common criticism of Bitcoin is that unlike gold it has no intrinsic value.  I always found this hard to respond to, usually saying things like “they just don’t get it,” etc.

But it finally dawned on me. And the best analogy I can think of is as follows:

Bitcoin is like a brick.
To build a house, you need bricks, and bricks cost money.
To build/utilize the bitcoin network, you need bitcoin (or the bricks of the network).
The more scarce the bricks are, the more they cost.
The greater the network effect, the more demand there is for bricks.

Nothing demonstrated this more than Ethereum during the ICO craze.
ICOs were built on Ether. Ether was the brick.
To participate in ICOs, you needed to buy Ether.
Ether became scarce, and thus the brick became more expensive.
ICOs died, and the bricks became less valuable.

This is the best analogy I can come up with.
Bitcoin is bitcoin you can't compare with other assets
Bitcoin i think don't have intrisic value, because it is not physical and also no guarantee from any institutions.
Bitcoin is only digital currency, where we believe will have future.

Users browsing this thread: 1 Guest(s)