Many people say that bitcoin does not have intrinsic value, they typically compare it to gold and say at least you can make some jewelry using gold
Value comes from demand. If someday, people's preference changed and there is no demand for gold jewelry, then gold will not have intrinsic value anymore
Value doesn't come from demand, quite the opposite. Some value should necessarily exist before to support demand. And the intrinsic value you refer to here is called
utility, i.e. usefulness for achieving individual's ends. How on earth could value be
intrinsic if it changes with people's preferences?
This.
As an example, we value water because it is highly useful (i.e. required for human survival), therefore the demand for water is extremely high. If tomorrow a way was found to alleviate entirely the human body's need for water, it's value would be greatly diminished, as it's usefulness had been reduced. Concomitantly, the demand for water would be diminished.
In the Bitcoin world, the demand for Bitcoins is high because people value them for various reasons such as security, anonymity, easy of transfer, low fees, etc. If tomorrow a requirement of high fees were somehow introduced, that aspect of its usefulness would be gone, thereby reducing its value. This would cause the demand to drop.