The energy expended in Bitcoin mining directly defines its security and scarcity, which are intrinsically valuable to the system itself. Security ensures the blockchain’s immutability, making it tamper-proof and resistant to manipulation, while scarcity enforces the finite supply of 21 million BTC. These attributes are foundational to Bitcoin’s design, forming the basis of its trustless, decentralized monetary system. Without these intrinsic qualities, Bitcoin could not function as a reliable store of value or medium of exchange.

As humans, we apply subjective value on top of Bitcoin’s intrinsic structure based on how much we individually or collectively value its security, scarcity, and functionality. This is why Bitcoin’s price fluctuates—it reflects the market’s collective perception of these attributes at any given moment. However, these subjective valuations do not diminish the universal and constant value embedded within Bitcoin’s structure.

The analogy of Bitcoin in a desert versus water misunderstands this distinction. Water’s value is tied to immediate survival needs, which are highly contextual and personal. Bitcoin’s value, by contrast, arises from its universal attributes—security and scarcity—that remain constant regardless of individual circumstances. These intrinsic qualities ensure trustless operation and integrity across the system, providing the foundation for its subjective valuation by humans. Bitcoin’s true strength lies in the interplay between its intrinsic, structural value and the subjective value applied by its users.