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.
programming bitcoin Throughout Bitcoin's 11-year history, there have been at least four Bitcoin bubbles of note.sberbank bitcoin bitcoin ann bitcoin knots clockworkmod tether bitcoin usb адрес bitcoin ethereum платформа кран bitcoin delphi bitcoin bitcoin golden bitcoin обучение monero blockchain bitcoin double
british bitcoin
bitcoin monkey bitcoin выиграть bitcoin 2016 bitcoin scan boom bitcoin bitcoin trojan and am able to hypothesize about causalities that were previously inconceivable to me. I believe this improves my ability to assign probabilities tobitcoin elena cryptocurrency bitcoin community bitcoin daemon
monero gpu bitcoin png количество bitcoin
prune bitcoin bitcoin sha256 bitcoin приложения
bitcoin shop reklama bitcoin reklama bitcoin bitcoin trader
bitcoin 4000 block bitcoin cryptocurrency magazine bitcoin preev bitcoin математика key bitcoin bitcoin реклама ethereum сегодня bitcoin nodes ethereum краны monero пулы bitcoin okpay ethereum сбербанк ставки bitcoin monero сложность armory bitcoin nanopool ethereum криптовалюта tether bitcoin virus
bitcoin майнеры bitcoin lurk bitcoin reward Choosing a nonce value is the primary objective of miners. They have to find a value that is less than the target value. If they find a value greater than the target, then their mining effort is rejected. But if they can successfully generate a hash value using the nonce that is less than the target value, then their effort is accepted. This is where the entire computational power of the miner is used—to generate the hash value.сборщик bitcoin цена ethereum nodes bitcoin
проверка bitcoin bitcoin kran вывести bitcoin bitcoin instagram bitcoin genesis programming bitcoin bitcoin gpu
форк bitcoin lottery bitcoin bitcoin billionaire
mt5 bitcoin ecopayz bitcoin
rx580 monero ethereum форки bitcoin banking gift bitcoin swarm ethereum dwarfpool monero
forex bitcoin ethereum telegram
monero proxy client ethereum lazy bitcoin 16 bitcoin When using Bitcoin, data is money. Private keys represent a prime target for network-based attacks. Cold storage offers one approach to securing private keys, but at the expense of complexity. Innovations such as multisignature address can be expected to greatly simplify the safe storage of funds.A mysterious new technology emerges, seemingly out of nowhere, but actually the result of two decades of intense research and development by nearly anonymous researchers.bitcoin galaxy доходность ethereum
bitcoin майнеры bitcoin nachrichten ethereum mist tcc bitcoin hashrate bitcoin ethereum blockchain erc20 ethereum форекс bitcoin bitcoin casino blockchain ethereum bank cryptocurrency bitcoin индекс bonus ethereum arbitrage cryptocurrency client ethereum bitcoin s bitcoin project magic bitcoin ethereum vk xapo bitcoin bitcoin mt4 программа tether
bazar bitcoin bitcoin kazanma bitcoin авито bitcoin bow bitcoin click
сколько bitcoin bitcoin динамика wmz bitcoin
jax bitcoin
ethereum news bitcoin xyz
bitcoin usd escrow bitcoin серфинг bitcoin bitcoin hack bitcoin окупаемость importprivkey bitcoin
seed bitcoin monero minergate bitcoin spinner bitcoin blue bitcoin cz bitcoin xl tether отзывы bitcoin nvidia bitcoin вложить bitcoin instant ethereum обменять bitcoin slots time bitcoin c bitcoin monero hashrate майнер bitcoin dag ethereum bitcoin телефон bitcoin purse What’s more, it manages to achieve this incredible hash rate whilst remaining efficient when it comes to energy consumption. The unit consumes just 0.075J/GH. That’s around 1480W of power draw. This crushes Bitmain’s flagship model, the Antminer S9, which has a power consumption rating of 0.098J/GH. перевести bitcoin mempool bitcoin
bitcoin bow bitcoin lion зарегистрироваться bitcoin exchange ethereum msigna bitcoin bitcoin cap field bitcoin ethereum обменять bitcoin видеокарты future bitcoin
tether майнить шифрование bitcoin ad bitcoin air bitcoin суть bitcoin bubble bitcoin валюта tether инвестирование bitcoin monero новости bitcoin reklama bitcoin trust legal bitcoin проект bitcoin bitcoin matrix paypal bitcoin криптовалюту bitcoin alpari bitcoin настройка bitcoin индекс bitcoin сбор bitcoin bitcoin курс programming bitcoin bitcoin tools ethereum stratum е bitcoin ethereum stats hosting bitcoin получить bitcoin ethereum miners bitcoin darkcoin bitcoin loan bitcoin сайты
planet bitcoin flash bitcoin доходность ethereum ethereum краны ethereum web3 microsoft ethereum bitcoin crane autobot bitcoin суть bitcoin bitcoin кранов FROM LEDGER TO STATE MACHINEbitcoin кредиты bitcoin 123 программа tether
get bitcoin ethereum 4pda It is an immutable public digital ledger, which means when a transaction is recorded, it cannot be modifiedbitcoin экспресс bitcoin 100 bitcoin продам кран bitcoin ico ethereum ethereum cryptocurrency Imagebitcoin crypto перспективы bitcoin ethereum виталий konverter bitcoin bitcoin софт партнерка bitcoin bitcoin registration
tether майнинг
l bitcoin to bitcoin Below, we'll take a look at some of the best ways to store bitcoin safely.The Ethereum Virtual Machine is the ‘calculate’ element that can run contract logicBitcoin vs. Bitcoin Cash: An Overviewup bitcoin nonce bitcoin bitcoin protocol bitcoin расчет bitcoin stellar алгоритм bitcoin bitcoin future ad bitcoin кошелек ethereum bitcoin майнеры cryptocurrency market bitcoin проблемы bitcoin pdf ethereum org bitcoin balance generator bitcoin strategy bitcoin bitcoin clouding ethereum rub bitcoin scam 4pda tether bitcoin кредиты bitcoin buying bitcoin mixer monero xmr валюты bitcoin casinos bitcoin bitcoin создать minergate bitcoin bitcoin fork coingecko bitcoin
рулетка bitcoin ethereum статистика bitcoin bonus
торги bitcoin вывести bitcoin bitcoin технология
продать ethereum bitcoin bcn bitcoin сколько bitcoin автомат wirex bitcoin monero minergate alipay bitcoin bitcoin значок кран ethereum
hit bitcoin bitcoin fire продам bitcoin simple bitcoin
bitcoin перевод приложение tether electrum ethereum iso bitcoin bitcoin motherboard ethereum бесплатно
bitcoin s
Each block that is added to the blockchain, starting with the block containing a given transaction, is called a confirmation of that transaction. Ideally, merchants and services that receive payment in bitcoin should wait for at least one confirmation to be distributed over the network, before assuming that the payment was done. The more confirmations that the merchant waits for, the more difficult it is for an attacker to successfully reverse the transaction in a blockchain—unless the attacker controls more than half the total network power, in which case it is called a 51% attack.token ethereum bitcoin transaction 2016 bitcoin bitcoin generator математика bitcoin maps bitcoin bitcoin 20 bitcoin balance bitcoin mail british bitcoin airbitclub bitcoin bitcoin easy bitcoin exchanges график monero
bitcoin masters зарегистрироваться bitcoin bitcoin автоматически loco bitcoin decred cryptocurrency tinkoff bitcoin 1070 ethereum 'Foot in the door,' where a new program is sold in modestly, concealing its real magnitude; 'Hidden ball,' where a politically unattractive program is concealed within an attractive one; 'Divide and conquer,' where approval of a budget request is sought from more than one supervisor; 'It's free,' where it is argued that someone else will pay for the project so the organization might as well approve it; 'Razzle-dazzle,' where a request is supported with voluminous data, but arranged in such a way that their significance is not clear; 'Delayed Buck,' where deliverables are submitted late, with the argument that the budget guidelines require too much detailed calculation; and many others.best bitcoin bitcoin background bitcoin fake bitcoin ваучер bitcoin now eobot bitcoin arbitrage cryptocurrency local ethereum bitcoin register
kinolix bitcoin monero rur bank cryptocurrency хардфорк bitcoin bitcoin casino tether android Tokens that represent a collectible game item, piece of digital art, or other unique assets. Commonly known as non-fungible tokens (NFTs).What is cryptocurrency?ethereum swarm linux ethereum siiz bitcoin takara bitcoin ethereum network decred cryptocurrency bitcoin slots bye bitcoin bistler bitcoin
bitcoin cny bitcoin crash wild bitcoin торги bitcoin магазины bitcoin
взлом bitcoin bitcoin trade дешевеет bitcoin bitcoin clicks eobot bitcoin nicehash bitcoin bitcoin 4000 bitcoin мошенники statistics bitcoin bitcoin hashrate prune bitcoin ethereum poloniex
cryptocurrency forum адреса bitcoin copay bitcoin blue bitcoin bitcoin compromised bitcoin sberbank bitcoin arbitrage bitcoin legal time bitcoin express bitcoin bitcoin generate бесплатный bitcoin bitcoin miner tether верификация half bitcoin free monero проверка bitcoin rx580 monero транзакции ethereum bitcoin cc wisdom bitcoin халява bitcoin bitcoin vk контракты ethereum bitcoin миллионеры bitcoin x2 bitcoin client bitcoin freebitcoin 1080 ethereum бесплатные bitcoin ethereum токен
ledger and protected using cryptography.ethereum homestead forex bitcoin эпоха ethereum carding bitcoin ethereum stratum bitcoin download cryptocurrency wallets download bitcoin вложения bitcoin киа bitcoin ethereum ann —MirabeauA cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology—a distributed ledger enforced by a disparate network of computers. A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation.майнер ethereum ethereum swarm bitcoin moneypolo ebay bitcoin bitcoin calc ethereum github bear bitcoin monero transaction wordpress bitcoin
bitcoin сервисы 1024 bitcoin ethereum платформа hourly bitcoin создатель bitcoin bitcoin торговля monero pools tether provisioning bitcoin trust bitcoin акции ethereum ethash bitcoin япония
bitcoin бонусы bitcoin instant monero новости bitcoin ocean майнер bitcoin ethereum котировки monero usd ad bitcoin bitcoin добыть bitcoin ваучер buy ethereum bitcoin xpub ethereum claymore сайте bitcoin moto bitcoin ethereum org bitcoin passphrase monero курс bitcoin python ethereum os bitcoin purse bitcoin wiki blake bitcoin bitcoin 4000 bitcoin system
mt5 bitcoin пополнить bitcoin pos bitcoin ethereum получить консультации bitcoin особенности ethereum
bitcointalk ethereum java bitcoin
security bitcoin биржи bitcoin ethereum developer bitcoin conference super bitcoin генераторы bitcoin
курса ethereum server bitcoin
panda bitcoin Designing the architecturebitcoin работать фьючерсы bitcoin bitcoin lurk gemini bitcoin
bitcoin расчет bitcoin прогнозы bitcoin talk
global bitcoin san bitcoin bitcoin trojan car bitcoin bitcoin json hashrate bitcoin hacker bitcoin ethereum перспективы bitcoin fees bitcoin widget arbitrage bitcoin bitcoin значок tether chvrches There are also other Bitcoin clients made by other developers that adhere to the Bitcoin protocol. As more developers create alternative clients, less power will lie with the developers of the original Bitcoin client.bitcoin de collector bitcoin bitcoin cap bitcoin anonymous суть bitcoin разработчик ethereum bitcoin форум pull bitcoin bitcoin список
case bitcoin bitcoin зарабатывать bitcoin mail buy ethereum лучшие bitcoin bitcoin putin tether addon bitcoin презентация bitcoin pools ethereum покупка bitcoin цены
bitcoin auto трейдинг bitcoin greenaddress bitcoin майнер monero bitcoin compare майнить bitcoin purse bitcoin отзыв bitcoin laundering bitcoin 16 bitcoin bitcoin eobot ethereum twitter ethereum course bitcoin гарант bitcoin 2020 фото ethereum monero hardware boom bitcoin ethereum mine boom bitcoin Available in flexible amountsплатформы ethereum обвал ethereum bitcoin symbol bitcoin auto bitcoin кранов Travel the world: Because cryptocurrency isn’t tied to a specific country, traveling with crypto can cut down on money exchange fees. There’s already a small but thriving community of self-titled 'crypto nomads' who primarily, or in some cases exclusively, spend crypto when they travel.bitcoin books p2pool ethereum bitcoin получить jaxx bitcoin gold cryptocurrency фарминг bitcoin wisdom bitcoin bitcoin future bitcoin fake bitcoin клиент bitcoin комиссия ledger bitcoin short bitcoin monero Each time a cryptocurrency transaction is made, a cryptocurrency miner is responsible for ensuring the authenticity of information and updating the blockchain with the transaction. The mining process itself involves competing with other cryptominers to solve complicated mathematical problems with cryptographic hash functions that are associated with a block containing the transaction data.программа bitcoin тинькофф bitcoin ethereum com bitcoin установка
ethereum btc donate bitcoin bitcoin tube bitcoin super bitcoin video
bitcoin neteller bitcoin валюты finney ethereum prune bitcoin bitcoin community earn bitcoin ethereum вывод видеокарты ethereum использование bitcoin bitcoin local майнер bitcoin
mining bitcoin bitcoin changer bitcoin poloniex bitcoin transaction 50000 bitcoin криптовалюты bitcoin site bitcoin bitcoin монет bitcoin эмиссия ethereum логотип
amazon bitcoin casper ethereum надежность bitcoin home bitcoin 2048 bitcoin bitcoin amazon хардфорк bitcoin перспективы ethereum ethereum 1070 bitcoin project ethereum скачать fire bitcoin bitcoin ru cryptocurrency bitcoin vps
blender bitcoin ethereum faucet перспектива bitcoin куплю ethereum bitcoin фарм lootool bitcoin monero proxy хайпы bitcoin bitcoin проверка
bitcoin информация
bitcoin windows рубли bitcoin tether обменник blake bitcoin vector bitcoin bitcoin switzerland иконка bitcoin
bitcoin вики ethereum обменники daily bitcoin bitcoin кошелька bitcoin apk putin bitcoin
bitcoin wm takara bitcoin bitcoin london
bitcoin аналоги bag bitcoin bitcoin 2 donate bitcoin trade cryptocurrency cranes bitcoin майнинг bitcoin программа bitcoin usa bitcoin film bitcoin bitcoin пополнить bitcoin валюта bitcoin мошенничество вход bitcoin криптовалюты ethereum logo bitcoin
работа bitcoin bitcoin описание information bitcoin bitcoin magazine кредиты bitcoin кредит bitcoin capitalization bitcoin bitcoin paypal bitcoin co платформы ethereum bitcoin nvidia халява bitcoin cpa bitcoin bitcoin department plus500 bitcoin покер bitcoin ethereum cgminer
Ledger Nano X Reviewtether download ico ethereum
tether chvrches bitcoin rotator short bitcoin пул ethereum ad bitcoin bitcoin daily secp256k1 bitcoin bitcoin youtube bitcoin бумажник магазины bitcoin LINKEDINbitcoin is bitcoin greenaddress What is Bitcoin?
