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.
So, what is cryptocurrency mining (in a more technical sense) and how does it work? Let’s break it down.книга bitcoin
bitcoin работать
настройка bitcoin bitcoin checker ethereum прибыльность сколько bitcoin cryptonight monero bestchange bitcoin tether apk
bitcoin accepted bitcoin подтверждение
деньги bitcoin bitcoin magazin bitcoin сбербанк е bitcoin стоимость ethereum bitcoin python ethereum supernova bitcoin принимаем ubuntu ethereum
golang bitcoin moto bitcoin динамика ethereum bitcoin telegram store bitcoin best bitcoin golden bitcoin cryptocurrency calculator
bitcoin kraken One of the ongoing debates has been what the ideal block size should be. Small block sizes greatly slow down the network and make a currency unscalable, while big block sizes require bigger data centers to process, meaning the currency’s network can become highly centralized, which is exactly what users don’t want to happen. Some solutions process transactions off the blockchain and then reconcile them with the blockchain, like batching multiple transactions into one big transaction. However, with Bitcoin’s increasing usage as a store of value rather than a medium of exchange, transaction time has become less important.bitcoin instagram робот bitcoin spots cryptocurrency monero новости разделение ethereum автомат bitcoin терминал bitcoin bitcoin ocean обмен ethereum monero windows bitcoin работа bitcoin blog buy tether film bitcoin bitcoin стратегия bitcoin sha256 bitcoin блог пул ethereum миксер bitcoin ethereum course платформы ethereum coingecko ethereum ethereum supernova bank bitcoin ethereum стоимость консультации bitcoin bitcoin king bitcoin run
tether usdt kran bitcoin отзывы ethereum usd bitcoin bitcoin автосборщик bitcoin protocol bitcoin nodes вывод monero
ethereum icon java bitcoin js bitcoin bitcoin транзакции новости bitcoin ethereum gold monero xmr ethereum block phoenix bitcoin bitcoin fund dwarfpool monero xronos cryptocurrency email bitcoin mastering bitcoin bitcoin pay buy bitcoin bitcoin лохотрон credit bitcoin bitcoin antminer bitcoin network криптовалют ethereum ethereum free баланс bitcoin дешевеет bitcoin armory bitcoin homestead ethereum bitcoin ann wmx bitcoin раздача bitcoin addnode bitcoin
bitcoin rate bitcoin word
обмен tether total cryptocurrency bitcoin shops san bitcoin monero pools global bitcoin For these reasons, Bitcoin and other cryptocurrencies share some characteristics with precious metals. They serve as an asset class that may be partially uncorrelated with other types of assets, and are popular among people that don’t have a lot of trust in governments or the stability of the global economy, and of course other people that just want to financially speculate.tether комиссии 99 bitcoin The principles behind both bitcoin and the Bitcoin blockchain first appeared online in a white-paper published in late 2007 by a person or group going by the name Satoshi Nakamoto.bitcoin explorer
bitcoin school хардфорк monero платформа bitcoin bitcoin reserve siiz bitcoin monero minergate skrill bitcoin algorithm ethereum ninjatrader bitcoin
ethereum обменники bitcoin рейтинг bitcoin rus hashrate bitcoin bitcoin calc
bitcoin компьютер
эфир ethereum monero hashrate alpari bitcoin
bitcoin investment адреса bitcoin tp tether tether tools bitcoin tor bitcoin сбор cold bitcoin bitcoin purchase bitcoin cap bitcoin monkey bitcoin bloomberg tinkoff bitcoin bitcoin mixer bitcoin darkcoin bitcoin комиссия bitcoin switzerland using POS are not winning contenders against Bitcoin. We think there is noвикипедия ethereum ethereum биткоин Generally the term 'bitcoin' has two possible interpretations. There’s bitcoin the token, which refers to the keys to a unit of the digital currency that users own and trade. A bitcoin token is held in a bitcoin wallet that is identified by a string of numbers and letters such as '1Jv11eRMNPwRc1jK1A1Pye5cH2kc5urtLP.' When someone wants to send you bitcoin, that person will send it to your particular, public wallet address, and you will access it via your private keys. bitcoin зарегистрироваться local ethereum
cryptocurrency gold bitcoin exchanges tether обменник vps bitcoin bitcoin talk cryptocurrency law bitcoin two planet bitcoin monero free bitcoin core planet bitcoin create bitcoin bitcoin foto биржа bitcoin монет bitcoin bitcoin trojan coinder bitcoin bitcoin s bitcoin express best cryptocurrency ethereum mine приват24 bitcoin bitcoin блокчейн ico monero blender bitcoin ethereum news bitcoin usa bitcoin dark amazon bitcoin ethereum майнить
ethereum покупка робот bitcoin bitcoin machine monero amd reward bitcoin зарегистрировать bitcoin statistics bitcoin cryptocurrency market bitcoin fund
steam bitcoin платформу ethereum bitcoin 99 ethereum пулы solidity ethereum Further, Bitcoin’s decentralized nature means that it is not in danger of being shut off by the incumbent monetary monopolist. Thus Bitcoin can achieve critical mass.bitcoin trojan ethereum логотип
форекс bitcoin bitcoin tools bitcoin drip теханализ bitcoin bitcoin список monero price nasdaq bitcoin ico monero node bitcoin описание ethereum monero обменять
bitcoin double bitcoin форумы accepts bitcoin bitcoin land
bitcoin доллар ethereum online bitcoin ваучер bitcoin monero free total cryptocurrency ios bitcoin takara bitcoin форки bitcoin карты bitcoin siiz bitcoin разделение ethereum миллионер bitcoin форекс bitcoin bitcoin maps bitcoin china bitcoin fan bitcoin debian bitcoin pools генераторы bitcoin
pay bitcoin dark bitcoin bitcoin location trader bitcoin получить bitcoin unconfirmed monero Ethereum developers actively work on their blockchain’s scalability problem. Vitalik Buterin, the co-Founder of Ethereum, believes that his blockchain could reach 1,000,000 transactions per second someday.bitcoin spend bitcoin сбор locals bitcoin steam bitcoin linux bitcoin вебмани bitcoin bitcoin x
circle bitcoin bitcoin motherboard
bitcoin proxy nodes bitcoin bitrix bitcoin bitcoin россия bitcoin теханализ ethereum эфир bitcoin сервисы bitcoin сети ethereum капитализация wordpress bitcoin monero pro конвертер bitcoin bitcoin бизнес delphi bitcoin site bitcoin новости monero bitcoin принцип bitcoin server bitcoin forum konvert bitcoin bitcoin комментарии ubuntu ethereum claymore monero конвертер ethereum bitcoin проект bitcoin evolution bitcoin заработать With cryptocurrency, the transaction cost is low to nothing at all—unlike, for example, the fee for transferring money from a digital wallet to a bank account. You can make transactions at any time of the day or night, and there are no limits on purchases and withdrawals. And anyone is free to use cryptocurrency, unlike setting up a bank account, which requires documentation and other paperwork.wallets cryptocurrency 2) No debt but bearer: The Fiat-money on your bank account is created by debt, and the numbers, you see on your ledger represent nothing but debts. It‘s a system of IOU. Cryptocurrencies don‘t represent debts, they just represent themselves. обозначение bitcoin chaindata ethereum ethereum настройка bitcoin валюты bitcoin rigs bitcoin alien bitcoin взлом bitcoin alien ethereum картинки wifi tether escrow bitcoin live bitcoin monero minergate monero core bitcoin logo bitcoin machines casascius bitcoin stealer bitcoin stock bitcoin bitcoin linux bitcoin google bistler bitcoin avto bitcoin monero spelunker abi ethereum cubits bitcoin сайт ethereum
bitcoin автомат ethereum проблемы bitcoin boom monero wallet ethereum cgminer bitcoin neteller bitcoin blue daemon bitcoin
p2p bitcoin bitcoin dogecoin
bitcoin red ethereum валюта ChainSafeLodestarJavaScriptmonero hardware half bitcoin Institutional economists drew a distinction between the management class and the class of 'technical operators' (the people doing the work, in many cases engineers and technicians). The managerial elite consisted of the 'analysts' or 'specialists' who acted as the bureaucratic planners, budgetary allocators, and non-technical managers.bitcoin чат bitcoin bear трейдинг bitcoin перевести bitcoin адрес bitcoin reddit cryptocurrency bitcoin prune tether bootstrap minergate ethereum monero обменник bitcoin shops ethereum os
майнинга bitcoin tx bitcoin
china cryptocurrency ninjatrader bitcoin bloomberg bitcoin bitcoin yandex цена ethereum разработчик bitcoin ethereum com ethereum настройка bitcoin ebay
ethereum faucet bitcoin орг zcash bitcoin bitcoin картинки gek monero bitcoin bonus wikipedia cryptocurrency bitcoin xpub bitcoin матрица bitcoin withdrawal bitcoin hype
bitcoin завести bitcoin кран сервисы bitcoin кошельки ethereum Once installed, your node will officially play a part in securing the Ethereum network. For more detailed instructions on any of the above, visit the official ethereum website.
