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- Sep 23, 2020
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"Financially intrinsic value is holding value in itself."Financially intrinsic value is holding value in itself. Bitcoin is supposedly a currency to be used, yet it lacks the stability required to be used as such. You literally show an example of why bitcoin is a horrible currency with the 10,000 bitcoin for a pizza example. The scarcity argument was exactly the same argument people made for beanie babies. Something being scarce doesn't mean it has an actual value. In this case the value is propped up by people believe that it must continue to increase in value, but doesn't produce value by itself. As stated other blockchain can literally do the exact same thing as bitcoin. The fact the they constantly fail really reinforces the idea that they don't actually produce anything of value. Tulips were once I highly sought after commodity, the value was super inflated.
I'm happy that you are happy with your decision hopefully you don't become a bag holder when others sell off.
Thank you for your answer to my question.
The U.S. dollar is considered the best or one of the best currencies out there. Since 1913 (The Fed) the dollar has lost more than 97% of its value. What is the intrinsic value of a dollar and what is the difference in intrinsic value of a 100 dollar bill and a 1 dollar bill? Why is one worth 99 dollars more? Is it just because the added two zeros? Seems kind of silly to me.
"Something scare doesn't mean it has an actual value."
I agree. Well said.
"Bitcoin is supposedly a currency to be used yet it lacks stability to be used as such."
I would call it money, digital money. I would say it is in the 'store of value' stage. The paper currencies of the world dominate transactions (including credit cards, credit etc..). The problem is they aren't a store of value. Bitcoin is in the speculative/accumulation stage so people are holding it as a store of value and everyone is trying to figure out what the value actually is. If bitcoin becomes a more serious medium of exchange is a good conversation. That time isn't now. I don't agree with your definition of intrinsic value. Take the internet boom of the 90's with all the tech stocks. Amazon and others were trading at incredible heights towards the end of the century. Amazon was losing money but the shares were rocketing higher. The stocks weren't trading on their so called 'intrinsic value' but something else was at play. I think with crypto and specifically bitcoin the same thing applies. I don't think it is easily understood. I also think many have been missing out on the best asset of the last decade and potentially this decade as well. There are a lot of sour grapes and I understand it. Everybody thinks they are a genius and when they miss out on something, they have to try and knock it down. It's tough to admit that other people saw something they didn't or dared to believe in something new. Many have been rewarded for being involved in bitcoin and other cryptos. It's been fun being a part of something that's helping people all over the world, especially in countries with very high inflation. Bitcoin has real utility and is already making a difference in the lives of many people.
https://www.nbcnews.com/news/latino/nonprofits-turn-cryptocurrency-help-needy-venezuelans-n1008726
https://www.coindesk.com/business/2020/11/11/venezuelas-bitcoin-story-puts-it-in-a-category-of-one/
https://bitpay.com/blog/africa-embr...ties,customers in underserved markets succeed.