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RE: Is Bitcoin a Fiat Currency? | Does Bitcoin Have Intrinsic Value?

in #cryptocurrency • 7 years ago (edited)

Honestly, as much as I like Bitcoin, I don't think it does have a real value. (Yes you can cashout, use it to trade and whatnot) but the price of it is set by us. What do I mean by that? Normally when you buy stocks you're buying "a part of the company" or whatever it is, therefore those stocks have a real value, whereas for Bitcoin you have a virtual token, that could go down back to 0 if everyone tried to sell it at the same time. (Arrived at a point where all Bitcoin is mined obviously)

7 years ago in #cryptocurrency by
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     7 years ago 

    I respectfully disagree that Bitcoin has no value. Look at your example, and the similarities between BTC and a stock.

    • Owning one BTC is to own 1/21,000,000 of all the BTC that will ever exist, so you do own a measurable part of whatever BTC is. This is like owning a part of a company in a way. The difference is that companies can split stocks, BTC cannot ever have more thant 21,000,000 coins.
    • The stocks have a "real value" only as long as its investors say so, if they all try to sell the stock goes to zero. Look at the dot.com bubble and Pets.com.
    • Also when you say that Bitcoin could go to $0, that is technically true, but practically I think it is improbable bordering on impossible. Because there are already millions of users world wide, and to some of those people it has a function (giving them financial escape from hyper inflation, and opening up options to transmit value in places where banks do not exist).

    I know Bitcoin's value might well drop, but to zero is in my view impossible. It might fall as low as $5,500 and that would be terrible for a lot of investors but again, despite all its limitations it still serves a function to some people, and still other people will hold it because they see it can develop and grow and establish more helpful qualities through ongoing software upgrades (privacy, smart contracts, etc).

    Check out this link to learn more:
    https://en.wikipedia.org/wiki/Pets.com
    "Its high public profile during its brief existence made it one of the more noteworthy failures of the dot-com bubble of the early 2000s. US$300 million of investment capital vanished with the company's failure."

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