Quote from: trebronics on August 24, 2010, 04:07:29 AM

Quote from: chaord on August 24, 2010, 03:35:42 AM

On the contrary, I can't seem to find any intrinsic value for bitcoins whatsoever. Is this correct? Historically all monies have started first as some commodity/good with at least some intrinsic value. Are bitcoins, however, the very first money with purely extrinsic initial value?

Using your example of "intrinsic value", what sort of intrinsic value do you feel gold bullion has? I've never seen a gold coin do anything other than sit in a safe.

By intrinsic value, I mean that gold can be used for something other than coins or currency (decoration, electronics, etc). Even currency printed on paper, the paper itself could be burned for heat or to make a giant papier mache house (lol). In both of these situations, obviously, the use value of the currency is nearly negligible compared to the exchange value. But the point is that there is a use value, however small. So before a "medium" can be elevated to a "medium of exchange" history has required that medium to have at least one use. What I'm wondering is whether this requirement is law or merely a historical suggestion?

Of course, if we can find a non-exchange use for the Bitcoin data, my question would be quite irrelevant. For example, (i'm speculating) in the industry of data destruction (analogous to the paper-shredding industry), maybe bitcoin hashes are superior to seed data for permanently deleting valuable information? I'm reaching here...but I hope my point is clear.