In my view, What is the intrinsic value of Bitcoin?
Many argue that Bitcoin has no intrinsic value because it is not backed by anything and does not generate cash flow.
Moreover, Bitcoin is actually backed by a very secure network that is used as a preeminent asset. We can see that there are five factors that become the intrinsic value of Bitcoin, namely:
1. Security
2. Decentralization
3. Scarcity
4. Eternity/ Immutable
5. Utilities
Conclusion
The intrinsic value of Bitcoin cannot be compared with other traditional assets because Bitcoin is a new type of asset. Bitcoin is still trying to find a place among other assets, and it is too early for us to determine Bitcoin's intrinsic value unanimously. The intrinsic value of bitcoin is likely to change based on people's perceptions and the future growth of Bitcoin adoption.
For an asset to have intrinsic value it shouldn't necessarily be backed by something or generating "cash flow." Take gold, for example: what gold is backed by? Obviously, this would be a stupid question to ask because it is gold that has always been used to support the value of other things but not the other way around. Does gold have intrinsic value? If we forget for a moment that value is always subjective, then we may say that it is the unique physical characteristics of gold that give it the intrinsic value that the vast majority of people recognize. Can we say the same when it comes to bitcoin? Like gold, Bitcoin does have unique traits that some people have already managed to understand and accept as part of their life. However, the problem is these unique characteristics of Bitcoin can't exist on their own, they can't survive without human beings supporting them by running full nodes, mining, and forming the necessary community of developers and users. In other words, bitcoin doesn't have intrinsic value because it disappears if stopped being supported.