Why does bitcoin have intrinsic value?:
When people ask why bitcoin (the unit) has no intrinsic value, they must try to understand that Bitcoin (the network) is a network (like the internet), but of value exchange instead of other information, that uses bitcoin (medium of exchange) like a unit measurement for value. Imagine if the internet had a maximum amount of data that could be sent around (21 million terabytes for a simple example). Because it is so necessary for humans to use the internet, that space (each terabyte) would be very valuable. Now imagine you can own rights to some of that space, to trade for physical goods and services. That’s what bitcoin is. It’s using the Bitcoin network (internet of value). Bitcoin is the largest global decentralized, secure network to exchange value between people. The internet the largest global decentralized, secure network to exchange information value between people.
People are confused by this because they are comparing it to stocks, or other things that we use today. Don’t become confused by all the misconceptions of what bitcoin actually is. When people say “blockchain” is the future, they are confused people that are saying there will be many value networks- but there is only one dominant, world-wide internet.
If you think of a blockchain as just a memory storage device (ledger), than they are saying that servers and data storage are more important than the entire internet itself. You may make money during this new, Dot.com excitement by trading “competition” to the new internet (alt-coins or innovative transaction platforms) but its safer to bet on the dominant winner (the internet of value).
The internet took a bit of time to evolve into what we see it as. It’s like people that didn’t understand the internet is a technology that can replace billions of physical goods and services. Every technology needs to build on and off ramps to old technologies, in order to prove their massive advantages until they replace them (think of a VCR/DVD player). Many physical technologies have been digitized. Streaming replaced CDs, DVDs, sometimes concerts (and therefore businesses creating and supporting those things), etc. There are billions of physical companies that are being digitized because of this (Air BNB or Uber are common examples). You don’t need to look very far to see what an internet of value will replace. Banks, transaction companies, and many other inefficient forms of trade. DON’T get left behind holding a Walkman when they stop making cassettes!
Jack Mallers is a 26 year old innovator that is redesigning and disrupting these archaic physical value exchanges, using software that is based on the internet of value (Bitcoin):
Here is Michael Saylor and Ross Stevens talking in Saylor’s event (Bitcoin for Corporations):
