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To 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
by return0 14y ago
To 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.