The intrinsic value of an asset determines its long-term existence in the market. After all, the “spicy” taste is the intrinsic value of the pepper, which is tangible and can be felt or estimated.

However, until now for a long time, some economists have been unable to associate Bitcoin with any of these basic characteristics, so they describe digital assets as assets with no intrinsic value.

Steve Hanke, professor of economics at Johns Hopkins University and Nobel Prize winner, is one of them.

He wrote in his Twitter, “This matter is confusing. The market value of an asset is based on the value set subjectively determined by market participants. This is the basic value we refer to. The market value of Bitcoin is $53,336. , But at the same time, its basic value is zero.

Hanke puts forward an interesting point here, but looking at the problem from all angles, it is not feasible to be restricted to one line of thought.

So does Bitcoin derive its intrinsic value from the evolving market?

The recent ecometric report attempts to explain the intrinsic value of Bitcoin. The report pointed out that the intrinsic value of assets is obtained through objective calculations, rather than the market value of assets .

However, this report does not explain clearly what “objective calculation” means, and we believe that this may depend on the financial model or the person assessing the asset.

为什么依然还有部分经济学家认为比特币毫无价值? For example, even though Hanke’s “objective calculation” considers the value of Bitcoin to be zero, PlanB’s financial model (calculated strictly based on scarcity) predicts that the value of Bitcoin at the end of this bull market will be $288,000.

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Therefore, there is still a controversy about which objective calculation is more important? Although Hanke is well-known in the field of economics, he analyzes Bitcoin within the same limits as fiat currency or any other commodity. However, Bitcoin economics is inherently different from traditional economics. It is not limited to a predefined value assumption .

Now, Bitcoin has the same value as legal tender. The value of legal tender mainly comes from the relationship between supply and demand, and the government of the issuing country maintains its stability. It is not supported by gold, silver or any commodities, and the trust of users makes legal currency valuable.

From a certain perspective, Bitcoin is the same. Although this discussion will be less in 2017, there will be enough data to support Bitcoin’s continued support and adoption in 2021 .

为什么依然还有部分经济学家认为比特币毫无价值? In fact, data from shows that the number of Bitcoin blockchain wallets increased from 22 million in January 2018 to 68.24 million at the end of February 2021.

In addition, the total number of bitcoin traders in 2021 will increase to 53 million, and currently, 306,335 bitcoin transaction orders are processed every day .

So does Bitcoin have intrinsic value? Although economists believe that the speculative value of Bitcoin is higher than its fundamental value or intrinsic value, we should note that some institutions under the guidance of these economists are currently deploying Bitcoin assets.

The intrinsic value of Bitcoin may not be conclusive, but if 50 million to 100 million users recognize the value of Bitcoin, fundamentally speaking, it cannot be zero .

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The original text comes from ambcrypto, compiled and compiled by Blockchain Knight, the English copyright belongs to the original author, please contact the compiler for Chinese reprint.