I never understood where the intrinsic value proposition came from. Value is subjective, as in a human sentric thing, not an item sentric thing.
Nothing have intrinsic value from a Austrian economics perspective (IE, Frederic Bastiat, Ludwig von Mises, Murray Rothbart, Ron Paul are all Austrian economic scholars).
For the rest of your text I need to absorb it a bit as I have to read that perspective before and I'm headed out the door now 😅
The intrinsic value or rather "using BTC as a store of value" instead of currency was a narrative hijack play by the cabal. The OG Bitcoin was supposed to be both an everyday use currency AND a store of value. The powers that be took control of the BTC narrative to only make it a store of value and everyone (including myself for a time) fell for it. The reason they got away with it is that the cabal controls the subreddit "bitcoin" and either bitcoin.com or bitcoin.org (I can't remember). This is massive leverage because anyone who is new to bitcoin would go to either the subreddit or bitcoin's website.
Try to just transfer $10 of BTC to another wallet and you will find that the network transaction cost is high compared to Bitcoin Cash (BCH). It's by design. The network transaction cost on BCH is lower compared to BTC. And that's by design (the original Bitcoin whitepaper design).
Unfortunately, since these cryptos are not backed by anything other than the market they tend to fluctuate massively. I don't believe we will ever see market-based cryptos ever be stable. The only stable cryptos will be anything that is backed by fiat/govts. We already have USDT and USDC which are US dollar cryptocurrency. They are relatively stable but come with their own set of risks. If we want to have a blockchain based currency it will have to be made by a govt, backed by that govt, and it must be connected to a real-world hard asset (like gold or silver).
I'm anticipating a scenario where the US govt will issue gold backed US Treasury dollars or silver backed US Treasury dollars that are built using blockchain technology. It will have to be a new US dollar otherwise if they just used the Federal Reserve Dollar Note gold and silver would explode in price leaving everyone worse off. I believe there will be a period of an exchange rate for US Federal Reserve Dollar Notes to US Treasury Dollars.
What is the intrinsic value of email? It does something useful. If space aliens came and took our email from us, how much ransom would we pay to get it back? But it doesn't have any muy intrinsic value.
In and of itself it does nothing. It's more that people subjectively value it. Like telegram had value when people used it, but not so much any more. There is no intrinsic value.
Value is not intrinsic; it is not in things. It is within us; it is the way in which man reacts to the conditions of his environment.
Ludwig von Mises, Human Action: A Treatise on Economics
I never understood where the intrinsic value proposition came from. Value is subjective
Not so. Due to how things like gold are formed, there is an intrinsic value that physically limits how much you can actually get, and you can take that gold or gems or whatnot and fashion it into something like jewelry, a toilet seat if you so chose, etc.
There are some industries that are more subjective, such as diamond -- where that industry has been propped up by jewelers artificially inflating the value and gatekeeping what diamonds are allowed and what aren't, especially as we can create diamonds.
But precious metals cannot be created from something else, they cannot be generated from 1s and 0s, and those 1s and 0s cannot be fashioned into something that you can wear on your person to sell in a pinch like say Vikings used to do with their metals.
That is where intrinsic value comes from: being able to always use it as currency, no matter what circumstances the world is in, no matter whether computers exist or don't exist. Even if the internet, if technology died tomorrow, even if the federal reserve died with them, metals would still have an intrinsic value and could be used as currency.
I never understood where the intrinsic value proposition came from. Value is subjective, as in a human sentric thing, not an item sentric thing.
Nothing have intrinsic value from a Austrian economics perspective (IE, Frederic Bastiat, Ludwig von Mises, Murray Rothbart, Ron Paul are all Austrian economic scholars).
For the rest of your text I need to absorb it a bit as I have to read that perspective before and I'm headed out the door now 😅
The intrinsic value or rather "using BTC as a store of value" instead of currency was a narrative hijack play by the cabal. The OG Bitcoin was supposed to be both an everyday use currency AND a store of value. The powers that be took control of the BTC narrative to only make it a store of value and everyone (including myself for a time) fell for it. The reason they got away with it is that the cabal controls the subreddit "bitcoin" and either bitcoin.com or bitcoin.org (I can't remember). This is massive leverage because anyone who is new to bitcoin would go to either the subreddit or bitcoin's website.
Try to just transfer $10 of BTC to another wallet and you will find that the network transaction cost is high compared to Bitcoin Cash (BCH). It's by design. The network transaction cost on BCH is lower compared to BTC. And that's by design (the original Bitcoin whitepaper design).
Unfortunately, since these cryptos are not backed by anything other than the market they tend to fluctuate massively. I don't believe we will ever see market-based cryptos ever be stable. The only stable cryptos will be anything that is backed by fiat/govts. We already have USDT and USDC which are US dollar cryptocurrency. They are relatively stable but come with their own set of risks. If we want to have a blockchain based currency it will have to be made by a govt, backed by that govt, and it must be connected to a real-world hard asset (like gold or silver).
I'm anticipating a scenario where the US govt will issue gold backed US Treasury dollars or silver backed US Treasury dollars that are built using blockchain technology. It will have to be a new US dollar otherwise if they just used the Federal Reserve Dollar Note gold and silver would explode in price leaving everyone worse off. I believe there will be a period of an exchange rate for US Federal Reserve Dollar Notes to US Treasury Dollars.
What is the intrinsic value of email? It does something useful. If space aliens came and took our email from us, how much ransom would we pay to get it back? But it doesn't have any muy intrinsic value.
In and of itself it does nothing. It's more that people subjectively value it. Like telegram had value when people used it, but not so much any more. There is no intrinsic value.
Ludwig von Mises, Human Action: A Treatise on Economics
Not so. Due to how things like gold are formed, there is an intrinsic value that physically limits how much you can actually get, and you can take that gold or gems or whatnot and fashion it into something like jewelry, a toilet seat if you so chose, etc.
There are some industries that are more subjective, such as diamond -- where that industry has been propped up by jewelers artificially inflating the value and gatekeeping what diamonds are allowed and what aren't, especially as we can create diamonds.
But precious metals cannot be created from something else, they cannot be generated from 1s and 0s, and those 1s and 0s cannot be fashioned into something that you can wear on your person to sell in a pinch like say Vikings used to do with their metals.
That is where intrinsic value comes from: being able to always use it as currency, no matter what circumstances the world is in, no matter whether computers exist or don't exist. Even if the internet, if technology died tomorrow, even if the federal reserve died with them, metals would still have an intrinsic value and could be used as currency.