Cyril Legret on Blockware Intelligence Newsletter

[Cyril Legret]

Thanks, I knew this one, that is exactly why I was writing about a boring gray metal!

Actually I found a great explanation there:

https://keepreadin.medium.com/why-does-bitcoin-have-intrinsic-value-d2d98669e7b3

And it is:

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.

[Cyril Legret]

Also ChatGPT gives an interesting explanation:

Bitcoin is often best analyzed within a monetary value framework rather than an intrinsic value framework.

Intrinsic value refers to the inherent value of an asset, which is based on its underlying properties, characteristics, and uses. For example, the intrinsic value of gold can be derived from its rarity, durability, and usefulness in jewelry and industrial applications.

Bitcoin, on the other hand, does not have any intrinsic value in the traditional sense. It is a purely digital asset that derives its value from a combination of supply and demand factors, including its limited supply, its decentralization and security features, and its growing acceptance as a legitimate asset class.

As a result, Bitcoin is often best analyzed within a monetary value framework, which focuses on the relative value of different currencies and assets in terms of their ability to function as a medium of exchange, a store of value, and a unit of account. Within this framework, Bitcoin can be compared to other currencies, commodities, and assets based on its ability to fulfill these functions, as well as on its relative scarcity and liquidity.

Overall, while Bitcoin may not have any intrinsic value in the traditional sense, it can still be analyzed and valued within a monetary value framework that takes into account its unique properties and uses as a digital currency and asset class.