Crypto

Does Bitcoin Have Intrinsic Value?

btc storm

Bitcoin seems to be a discussion across different circles with people sharing different opinions. The question of the intrinsic value of Bitcoin keeps coming up in different arguments. There are those who hold that it lacks intrinsic value, while others disagree with this position. In this article, we will try to shed some light and clarify a number of things. Hopefully, at the end of it all, you will be able to make an informed decision as to whether you should invest or not invest in Bitcoin bitcoindigital.io.

Before getting into more details, it is imperative to start by understanding what intrinsic value means in relation to cryptocurrencies. Something is said to have intrinsic value when it can attract some form of money. For instance, when a company produces some products or offers services and gets some money for the items, this is what is known as having intrinsic value. The value is calculated based on the value of the asset and the expected future earnings from the goods or services.

Bitcoin is not a company and certainly does not produce any goods or services. As such, there are those who would be quick to dismiss it as lacking intrinsic value. However, there is a different way of thinking about it and this is what we want to look at. Hopefully, this will help you understand the type of value Bitcoin has.

Intrinsic Value in Relation to Bitcoin

From the traditional definition of intrinsic value, it is easy to conclude that Bitcoin has nothing to offer. However, this depends on the specific terms and approach that the investors would want to understand the concepts. A good question to pose, “do the goods or services produced by a company have their own value away from the company?” Of course not! Even to make it more interesting, without the goods or services do companies have value? Again the answer is in the negative. As such, it means that the value is affected by other attributes and not just the case of a company producing goods or services.

With these questions in mind, when trading on bitcoindigital.io, you need to keep asking yourself what gives anything value. In our thinking, something is valuable because it offers value to the users. Some scholars argue that intrinsic value is something that brings happiness. Being open to different lines of thoughts can help decipher this issue of intrinsic value in relation to Bitcoin. Just like other forms of investment, you need to explore the various possibilities and the different aspects of value that Bitcoin promises to offer.

With all parameters in place, we can conclude that Bitcoin does not have intrinsic value by definition. However, this does not mean that it is not valuable; as a matter of fact, from most angles, it seems to have more value than other forms of investment. Bitcoin comes with so much value and going by the argument of bringing happiness, a good number of traders have invested in Bitcoin and reaped big. There are so many good reasons why people are choosing to buy Bitcoin. In fact, El Salvador is on its way to making Bitcoin legal tender.

Whereas there are some things that still need to be ironed out about Bitcoin trading, it is a good investment. A number of payment platforms like PayPal have accepted Bitcoin as a mode of payment and there many other companies and brands that seem to follow suit. It goes without saying that there are many investors who think of Bitcoin as an investable asset, which is value.

In conclusion, while Bitcoin may not meet the criteria for having intrinsic value, it has so much to offer, which makes it valuable. It is worth considering it as a form of investment. 

Follow Techrado for more!

Related  A Beginner-Friendly Approach to Bitcoin Trading