The lack of intrinsic worth is a strength. Why?

Bitcoin critics claim that lack of intrinsic value is its mortal sin. In other words, Bitcoin is an empty shell. In the face of an attack, an automatic defense arises in the form of denial. In other words, Bitcoin proponents are often outraged by such an accusation, arguing that Bitcoin actually has intrinsic value. Well the thing is, this debate usually gets nowhere because it becomes too visceral to be of any use. What has an intrinsic value? Is it bad not to have it? What if Bitcoin doesn’t really have intrinsic value, but that is exactly its main attraction?

The intrinsic value of something is supposed to be its fundamental value, regardless of its market value. For example, the intrinsic value of a company relates to its assets and production. A farm produces food. A bakery produces bread. A factory produces products. Accommodation provides accommodation. A car provides transportation. The production of goods and services is tied to demand. People need things in order to live. Food, shelter, transportation, health, entertainment, etc. The economy is basically that. The activity of producing what we need.

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The lack of intrinsic worth is a strength.  Why?
The lack of intrinsic worth is a strength. Why?

We analyze a joint article. Let’s say an apple. An apple has a use value because it serves a practical purpose. That is, it is food and it nourishes us. An apple has nutrients that help our bodies function. Of course, an apple also has an exchange value. I mean we can eat the apple. But we can also sell it. Suppose we have an apple. And they offer us a thousand dollars for it. In that case, it would be a very good idea to sell, because with a thousand dollars we can buy a lot of groceries. In the event that we don’t have a buyer for our apple. The best thing would be to eat it. Determining the intrinsic value of something is important from a financial point of view as it helps us estimate its exchange value.

Continue with the example of the apple. If an apple goes on sale for a thousand dollars, an analyst might say the item is overrated. One could say that such an assessment lacks the basis. In other words, there isn’t enough intrinsic value to warrant this assessment. When we talk about a company, we could be talking about its income. A business with no assets, sales, or revenue lacks the basics. The market price is assumed to be quite low. On the other hand, if the company is trading at a high price, an analyst might say there is an overvaluation simply because of a lack of fundamentals. In other words, there is no intrinsic value.

Of course there are outliers. That said, there are items that are special in terms of their value. A (used) toothbrush, for example, has considerable utility value, but no trade-in value. In this particular case, its high intrinsic value does not mean high exchange value. The article itself is extremely useful to the user. However, it is not an item for commercial exchange. On the other hand, there are articles that have no use value but have an exchange value. Money is the epitome of that. Money itself is useless. Money is not eaten. Not used. It does not satisfy any basic need. It has no intrinsic value. It would be useless to a Robinson Crusoe. Money is only useful as a medium of exchange.

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Money is useless to a hermit or an outcast. Because money is a social tool. In essence, it’s an abstraction. It’s a kind of language that organizes. The prehistoric forerunner of money is favor. That is, the informal reciprocity of primitive gift economies. I help you, you help me. And we all share the spoil. Well, money is the impersonal version of that reciprocity. It’s made the favor contract. A social pact. An agreement.

When we talk about the intrinsic value of the dollar, we would have to go back to the intangible. The power of the American government. Your credibility in the world. The reliability of its institutions. Of course, we would also like to mention something extremely important. The size of your network. In other words, we would be referring to the number of users. We would talk about world trade, countries’ international reserves, and so on. In other words, the intrinsic worth of something that has no intrinsic value is its social recognition.

What is the difference between a popular language and a dead language ?: The number of users. Languages ​​are symbolic systems. They have no intrinsic value in themselves. Their importance lies in their use. Their relevance is related to the number of users. That is, for the people who have signed this special social pact. People who use this code system called “???? Spanish” ???? They form a community of understanding. The strength of a language arises in this social unity.

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Bitcoin, which lacks intrinsic value, derives its “intrinsic value” from its community. Bitcoin is a code. And bitcoiners gave this code a monetary value. It’s an agreement. A great social pact. Of course it’s a civic agreement. The community came into being spontaneously and voluntarily, not because of a government decree. Users recognize its worth. We know that the code as such is worthless. The code isn’t the most important thing. What is valuable is what the code represents. In this representation there is the value of Bitcoin. We all know that behind every bitcoin there is a community of mutual recognition.

All abstraction follows a circular logic. Every abstraction is in turn a paradox. Bitcoin is worth it because we believe it is worth it. Sounds like a schizophrenic’s deception. But abstract thinking is what sets us apart from animals. Bitcoin critics who only see code with no intrinsic value have no imagination. They think they are analyzing a company. It’s not the code, you idiot. It is the social agreement that the code represents. All bitcoiners have a pact: we accept bitcoin as a medium of exchange. The price rises because the community of acceptance rises. Nobody buys Bitcoin for its intrinsic value. We all buy Bitcoin for its trade-in value. Its exchange value increases thanks to its community. This is the strength of Bitcoin.


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