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You're misinterpreting the definition of intrinsic value. The ability to buy things online privately is something entirely extrinsic to BTC. Even people who say
by argonaut 14y ago
You're misinterpreting the definition of intrinsic value. The ability to buy things online privately is something entirely extrinsic to BTC. Even people who say that the US dollar has intrinsic value (aside from the paper) are mistaken - value derived by fiat only gives the dollar legal value.
You most certainly can pay taxes with cash. But that's not the point. The point is that you have to pay your taxes in US dollars.
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- Evbn 14y agoAnd the value of the ability to fill your mouth with gold is completely extrinsic to gold.
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- return0 14y agoTo be fair, the article recognizes intrinsic value in the dollar, but not in bitcoin, applying double standards. Btc 's divisibility, the fact that it s hard to counterfeit, and anonymity are intrinsic values although the whole concept of intrinsic value is vague, because in the end all values are market-determined That doesnt make sense. The dollar has extrinsic value too, which comes from the legal requirement of governments to accept it as payment. Unless you feed on paper, it doesn't paper money has less intrinsic value than digital, the latter is more divisible and easily exchangeable worldwide. http://en.wikipedia.org/wiki/Intrinsic_value_(numismatics) http://en.wikipedia.org/wiki/Intrinsic_value_(numismatics)
- argonaut 14y agoYou are correct that intrinsic value is very vague. That wikipedia article, for example, is incorrect if you apply a strict definition of intrinsic value. Since all currency value is essentially subjective, all fiat currencies / digital currencies are devoid of intrinsic value. The value from satisfying legal requirements is extrinsic.