Peter Schiff, the Bitcoin perma-bear strikes again. He often uses terms like 'underlying value', and 'intrinsic value' when talking about Bitcoin. He states that Bitcoin has no value because of its digital properties. He implies that you can't hold it in your hand, make jewelry and electronics out of it, or store it in a vault. Because Bitcoin doesn't exist in the physical realm, it cannot have value. Well, the year is 2022, and every day people on this planet buy and consume things which exist solely in the digital realm. These include:
- Computer Software (Operating Systems and Apps)
- Music (Spotify, etc.)
- Movies (Netflix, etc.)
- Books (Audible, Kindle, etc.)
- Financial Services (Online Banks, Brokerages, etc.)
This list goes on and on. All of these products didn't exist a century ago, yet they consume so much of our time and resources. They have no underlying or intrinsic value? What about all the work that was put into them? What about the utility you get when you use them?
Bitcoin is no different. The current Hashrate of the Bitcoin network is 176 Exahash, which is said to consume more energy than many small countries. It is clear that just like with other forms of digital property, work was done to create it. And this luddite would try to convince me there is no utility in storing and transmitting value digitally? Come on.
So the answer is yes, digital things have an underlying value, and if you've ever purchased a digital product or service you agree with me, whether you like it or not. The main difference with Bitcoin and cryptocurrency is that digital value can be protected and transferred to someone else.
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