WAX ON: Here's Why Bitcoin Has No Intrinsic Value
Channel: WAX NFTs
Date: 2019-11-20

Just in time for those holiday dinner conversations, where you'll hear the inevitable "Bitcoin has no intrinsic value." The classic argument by skeptics against digital currency. 

How should we think about value? How should we evaluate the role of currency and what it represents?

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We've all heard the argument. Does Bitcoin have intrinsic value? Of course the rhetorical response is always “no,” right? And therefore it follows “Okay. But then Bitcoin has no value at all.” 

But what is intrinsic value? Intrinsic value means value in itself. The thing you possess generates the value you're seeking. No other ingredients are needed. 

So isn't this intrinsic value argument a red herring? Because frankly no currency has intrinsic value. In fact, I'm not aware of anything by itself that has intrinsic value other than maybe happiness. And in case you're wondering but what about gold? I would say no gold has no intrinsic value, value in and of itself at least not for most of us anyway because for starters you don't even know whether or not what you have is gold. Gold doesn't self identify. You need something else outside of gold like an assay for instance to actually authenticate it and it can't even be instantly authenticated. 
Oh but that is a trait Bitcoin does quite well isn't it? Bitcoin can't be counterfeited and it can be rapidly and at very low costs verified as being genuine. It's the hallmark of Bitcoin in fact. 
I think we need to start giving a different answer when the subject of Bitcoin and intrinsic value comes up. Does Bitcoin have intrinsic value? We'll concede it doesn't. And again neither does any other currency. 
But Bitcoin does have something else. It's called instrumental value. Instrumental value is the value of something because it can be used to do or obtain something else you want. Something you desire. It's valuable because it is a necessary ingredient in something else you want or need to do. So let's start talking about Bitcoins instrumental value and see how these other fiat currencies compare to that standard.
 
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Disclaimer

The information contained herein is for general informational purposes only. Nothing herein shall be construed to be financial, legal, or tax advice. The content of this video is solely the opinions of the speaker(s). Buying and selling cryptocurrencies poses considerable risk of loss. The speaker(s) does not guarantee any particular outcome. Past performance does not guarantee future results. You should do your own research, incorporating your own personal financial situation and risk tolerances, before making any purchase or trading decisions. The speaker(s) is not an investment advisor, broker or dealer. Your financial decisions are solely your responsibility.