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The intrinsic value of crypto is that is the first form of electronic cash that isn't a proxy for bank to bank transfers. It's intrinsic value comes from being
by trixie_ 5y ago
The intrinsic value of crypto is that is the first form of electronic cash that isn't a proxy for bank to bank transfers.
It's intrinsic value comes from being an excellent form of currency and store of value - easy to store, fast to send, easy to verify, easy to hold personally, difficult to create more of, etc.. Up until Bitcoin there were not digital forms of money that came close. Physical forms of money are hindered by being physical which means transportation and validation are more complicated.
It's not easy to find a form of money that has all these properties above, Bitcoin and other crypto currencies do which is WHY they are valuable. That is their intrinsic value - being good at being money.
- chii 5y ago> being good at being money. i would argue that bitcoin isn't good money at the moment, since certainty of value is one property that is very high on the list of requirements, and bitcoin lacks certainty (or stability). It's very good at being a speculative asset - like gold. But not money. Not yet anyway. I'm not saying it can never be good money - that's what people are speculating about!
- trixie_ 5y agoHolding value is also important. Fiat currencies are notoriously bad at holding their value over any long period of time. Bitcoin might not be stable (as a result of not being easily manipulated by the government), but over the long term its value has increased due to scarcity. Many people use both today with Bitcoin debit cards that allow converting to fiat for use with lower level transactions.