3 ms·

That's like asking why laws firms & and security agencies exist.

• the_gastropod 9y ago
  Intrinsic value has a well-understood meaning in economics. Bitcoin, like any currency, has no intrinsic value, regardless of these neat features.
  • lend000 9y ago
    > Intrinsic value has a well-understood meaning in economics. Bitcoin, like any currency, has no intrinsic value, regardless of these neat features. I don't think you understand the definition of intrinsic value -- it has nothing to do with being physical: https://www.investopedia.com/terms/i/intrinsicvalue.asp https://www.investopedia.com/terms/i/intrinsicvalue.asp Key quote: "The intrinsic value is the actual value of a company or an asset based on an underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors.
    • the_gastropod 9y ago
      Where did I imply intrinsic value requires physical presence? Businesses produce cash flow, and therefore ownership stakes (stocks) have intrinsic value. Gold is used in manufacturing and has an intrinsic value (lower than its traded value). Bitcoin has 0 intrinsic value. This is not a slight against Bitcoin, it's just a property of most currencies. Bitcoin is no exception. A good thought experiment for whether something has intrinsic value is: would <thing> still be useful if nobody else on the planet wanted it? A share in a business would continue paying out dividends, and would absolutely be useful. A dollar bill would be useless (especially if it's an electronic dollar). A bitcoin would also be absolutely useless.