The intrinsic value of bitcoin is zero.
Same as a dollar. I’ll take all yours if you don’t need them.
That’s cool. The intrinsic value of a dollar bill is whatever anyone else says it is. I think its worth the rag paper that its printed on. My bitcoin is worth $48k to someone today.
That will change tomorrow. And that’s OK.
Forget about the tulip aspect of it—I doubt I would ever be able to convince you about that. But if you ever wired money from one place to another, you know that is a tiresome, expensive process.
The Day that Yellen was yammering about Bitcoin being inefficient I transferred some to an exchange. It cost $32—about the same as a wire transfer. It took 40 minutes to complete.
I sold it, and wired the dollars to my bank account. That took two days.
THAT is the value in the network. If you are moving large sums of money from NY to Hong Kong, or Riyadh, bitcoin will get it there quickly, cheaply, and securely. And there are not four intermediaries each taking a cut nor the NSA, Mossad, and GRU peeking into the transmission.
For international/commercial trade this is a significant game changer.
Just as you would never buy a cup of coffee with an ounce of Gold, Bitcoin is not ever going to be effective in a retail setting.
At least my tulips are tangible.
So is that of a dollar.