Is Bitcoin The Currency Of The 4th Industrial Revolution?
1 Oct 2020 — Is #bitcoin the currency of the 4th industrial revolution? In this week’s “Setting The Record Straight”, we ask the question, why bitcoin has (intrinsic) value, and where its worth comes from.
Before that, let’s find out why Fiat currency has value. Simple, because the government says so. The value of the money is determined by the government and it retains its value through government stability and its economy. However, there’s no underlying asset ie. physical commodity that backs the currency.
Now what about Bitcoin? It is neither backed by a physical commodity nor governments. As such, many have yet to understand why people from all around the world see real value in Bitcoin although there’s an increasing number of investors that beg to differ.
Kraken Digital Asset Exchange recently reported that bitcoin’s intrinsic value lies in its characteristics and properties:
– Uncorrelated asset
– Cryptographically secure
Kraken concluded by saying that bitcoin’s intrinsic value is in the eye of the beholder. The advent of bitcoin warrants a methodical reevaluation of the concept of “intrinsic value” and where it falls within the value spectrum of stocks, bond, real estate, collectibles and fiat currencies.