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Things do have intrinsic value. The intrinsic value of bitcoin is that it allows you to write to the bitcoin network. That's the only use case bitcoin has on the network. You spend bitcoin to make new UTXOs.

The value of the token is derived from the value of the network. The intrinsic value of the bitcoin network is that it cannot be debased, censored, or confiscated and that anyone with minimum hardware can personally validate it.

nicnym 1y ago

so what is the intrinsic value then? is it something other than the price?

price isnt derived from anything it is just the price quoted at any time by the merchant. I could go to coinbase and argue with them that they are overcharging for bitcoins because the "intrinsic" value is lower than the market price, so they should give me a discount?

Intrinsic value is a bullshit term, people will always see value differently because people are different. on a large scale market for equities or bitcoins we have an average price, that merchants will exchange at in order to not lose business. arbitrage markets ensure prices stay tight and most of this is automated at scale, but if I am buying or selling sats locally then the value will be determined voluntarily at that time by the parties involved.

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