When people argue about the viability of Bitcoin as an investment vehicle, they often point to its perceived lack of intrinsic value. Intrinsic value can be loosely defined as the thing that makes an investment worthwhile. Investors are always on the lookout for intrinsic value in an investment because that is what ultimately gives it staying power.
The price of an investment can sometimes rise without intrinsic value because of momentum from other people buying the asset. Yet lacking the intrinsic value, the price will eventually crumble, or at least that’s what conceivably should happen. In the case of Bitcoin, people who fear that there is no intrinsic value liken it to a stock bubble, where prices are inflated with nothing concrete inside to hold them together.
Yet the argument against Bitcoin having intrinsic value seems to be a bit empty itself when exposed to further scrutiny. While Bitcoin would seem to have certain flaws as an investment and even as an alternative currency, there is still enough behind it to give it substantial weight as an investment.
As for investing in Bitcoin, you can do so on your own, or utilize the help of a trading robot such as Bitcoin Trader to get the job done for you. Taking a close examination of Bitcoin will show you that it has more intrinsic value than its detractors give it credit for possessing.
1. The Technology
You might think that Bitcoin lacks any physical characteristics, and therefore lacks intrinsic value. After all, it is essentially nothing more than computer code and math problems whipping through the digital sphere. But the technology behind it, known as the blockchain, has extreme utility in the lives of the people who use it, and that goes far beyond simply making digital transactions. The blockchain has already made such a dent on modern society that its absence would be felt if taken away.
2. The Specific Uses
As for the way that Bitcoin uses the blockchain, it makes a difference in the lives of its adopters. Think of how a small business that accepts Bitcoin can receive a payment in a fraction of the time it would take with a credit card. Or the way that two people can conduct business without having to worry about geographical borders or tariffs, bringing the world a little closer together in the process. There is value, for certain, in these activities.
3. What They’re Missing
Many people who make this argument about Bitcoin are those who have likely never used it themselves. Without having the first-hand experience with it, they can’t possibly make any assumptions about its worth to those who do. If you haven’t used it, you should find out the experiences of those who must see if there is any intrinsic value to be had. This will help you make a clearer decision about its worth.
Intrinsic value is indeed an important factor in the world of investing. Just don’t believe that Bitcoin doesn’t have any of that value without experiencing it for yourself.
If you are interested in even more cryptocurrency-related articles and information from us here at Bit Rebels then we have a lot to choose from.