The report, made by Kraken Intelligence and 25 pages long, aims to answer the age-old question about the existence or not of the intrinsic value of Bitcoin.
In reality the same report admits that the definitive answer to this question remains elusive, but that examining it can help to clarify its notion of value.
For example, compare the value of Bitcoin with the value of fiat currencies, stocks, bonds, intangible assets, commodities, and flowing assets, in order to highlight the differences and possible points of contact.
The reflection insists on the reasons why investors pay money to buy these assets, in order to raise a question that bitcoin investors should ask themselves: „All in all, what am I willing to pay to get bitcoin today?
The report attempts to define what it is, and how the intrinsic value of the assets, if any, should be considered, in order to then apply this definition to Bitcoin.
After analyzing several definitions, it concludes that the intrinsic value is the value that you attribute to a resource, and its attributes, when you look at that asset at a given time and/or context.
He cites as an example the paradox of water and diamond: although water is, on the whole, much more useful for survival, diamonds have a much higher price on the free market. In addition, water is a multi-purpose good, and in some areas, such as agriculture, it is more valuable.
In the end the report comes to this conclusion:
„Just like beauty, the intrinsic value is in the eye of the beholder“.
The intrinsic value of Bitcoin
In this Bitcoin does not differ from other financial assets, whose value is always the „culmination“ of the intrinsic value perceived by all market participants.
Despite the fact that many people around the world have yet to understand why people around the world see real value in Bitcoin, those who do see it use both a conventional and unconventional approach in grasping what makes Bitcoin similar to traditional financial assets in this respect.
It is also likely that different people give Bitcoin a different intrinsic value, so much so that this reflection leads to question the same fundamental concept of „intrinsic value“ for all other assets, including stocks, bonds, real estate, collectibles and fiat currencies.
The report concludes by saying:
„Although the way forward for bitcoin is uncertain, one thing is certain is that bitcoin has value“.