When discussing Bitcoin, few criticisms surface as frequently—or as stubbornly—as the claim that "Bitcoin has no intrinsic value." If you've spent even a short time exploring the world of digital assets, you’ve likely encountered this argument in one form or another. Recently, geopolitical analyst Peter Zeihan echoed this sentiment on Joe Rogan’s podcast, asserting: “There is no intrinsic value to this product.” He went on to predict a steep drop in Bitcoin’s price, seemingly dismissing its entire economic foundation.
But before we accept such claims at face value, it’s crucial to unpack what “intrinsic value” really means—and whether the concept holds any water in the first place.
Rethinking "Intrinsic Value"
Let’s start with a fundamental truth: value is subjective. No object possesses value in and of itself. Instead, value emerges from human perception, need, and utility. You can’t isolate “value” in a lab or weigh it on a scale. Even something as essential as water has no measurable value in absolute terms—its worth shifts depending on context, scarcity, and access.
This is why economists rely on market prices—driven by supply and demand—as the best proxy for measuring value. And while markets fluctuate based on culture, geography, and time, one thing remains clear: value isn’t inherent. It’s assigned.
So when critics say Bitcoin has “no intrinsic value,” they’re often misunderstanding how value works in the real world. What they’re really asking is: Does Bitcoin serve a meaningful use case? And if so, how well does it fulfill that role compared to alternatives?
Bitcoin’s Use Case: Digital Money
Bitcoin isn’t just a speculative asset—it was designed from the ground up to function as money. According to the Federal Reserve Bank of St. Louis, effective money must serve three core functions:
- Store of value
- Medium of exchange
- Unit of account
To perform these roles reliably, a good must also exhibit six key properties: divisibility, durability, fungibility, portability, scarcity, and acceptability. Let’s examine how Bitcoin measures up.
Divisibility
Bitcoin can be divided into units as small as one hundred millionth—called satoshis (or “sats”). This level of granularity allows for microtransactions and broad usability, even as the price per coin rises.
Durability
Unlike physical assets that degrade over time—gold tarnishes, paper currency tears—Bitcoin exists as code secured by cryptography. As long as the network remains active (and it has for over 15 years), your Bitcoin won’t corrode, burn, or decay.
Fungibility
Every bitcoin is identical to every other. One BTC today is interchangeable with one BTC a decade from now. This uniformity ensures trust and ease of exchange—critical for any monetary system.
Portability
You can send millions of dollars worth of Bitcoin across the globe in minutes, with minimal fees—especially when using layer-two solutions like the Lightning Network. Try doing that with gold bars or real estate deeds.
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Scarcity
With a hard cap of 21 million coins, Bitcoin’s scarcity is mathematically guaranteed. Unlike fiat currencies, which central banks can inflate at will, Bitcoin’s supply is fixed and predictable. This artificial scarcity mimics precious metals—but without the physical limitations.
Acceptability
Anyone with an internet connection can receive, send, or store Bitcoin. No bank account required. While adoption varies by region, millions already use it for remittances, savings, and commerce—especially in countries with unstable currencies.
Why Bitcoin Outperforms Traditional Alternatives
Few assets excel across all six properties. Cash fails on durability and scarcity. Gold is scarce and durable but lacks divisibility and portability at scale. Real estate is illiquid and non-divisible. Bitcoin, however, combines the best traits of both digital technology and sound monetary policy.
Consider this: most modern money—like the U.S. dollar—is no longer backed by gold or any physical commodity. Its value rests entirely on trust in institutions and controlled scarcity. Yet governments routinely devalue fiat through inflation. Bitcoin offers an alternative: decentralized, rule-based scarcity enforced by code, not policy.
Addressing Common Concerns
Still skeptical? Here are some frequently asked questions that help clarify Bitcoin’s role and resilience.
Q: If Bitcoin isn’t backed by anything, how can it be valuable?
A: Neither is the dollar—not since 1971, when the U.S. abandoned the gold standard. Modern money derives value from trust and utility. Bitcoin’s trust comes from its transparent, immutable protocol; its utility lies in censorship-resistant transactions and reliable scarcity.
Q: Isn’t Bitcoin just speculation?
A: All assets experience speculative phases—stocks, real estate, even gold. But speculation doesn’t negate underlying utility. Bitcoin’s long-term value proposition lies in its ability to function as global, digital money outside centralized control.
Q: What happens if the internet goes down?
A: While Bitcoin relies on internet access, it’s more resilient than often assumed. Mesh networks, satellite broadcasts (like Blockstream Satellite), and offline transaction signing enhance redundancy. Plus, losing global internet access would disrupt far more than just Bitcoin.
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Core Keywords Driving Understanding
To better align with search intent and clarify relevance, here are the core keywords naturally embedded throughout this discussion:
- Bitcoin intrinsic value
- digital money
- store of value
- scarcity of Bitcoin
- medium of exchange
- Bitcoin vs fiat
- decentralized currency
- monetary properties of Bitcoin
These terms reflect what users actually search for when evaluating Bitcoin’s legitimacy and long-term potential.
The Bigger Picture
Bitcoin isn’t valuable because someone says it is. It’s valuable because its design solves real-world problems: inflation, financial exclusion, cross-border friction, and centralized control over money.
Its price may swing wildly in the short term due to hype, regulation, or macroeconomic shifts—but those are market reactions, not reflections of fundamental worth. Underneath the noise lies a robust system built on predictable rules and cryptographic security.
I use Bitcoin myself—as both a long-term store of value and a tool for global transactions. It hasn’t been perfect, but over time, its reliability has proven superior to traditional alternatives in many contexts.
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Final Thoughts
Calling Bitcoin “valueless” misunderstands not only how money works but also how human beings assign worth. Value isn’t intrinsic—it’s emergent. And Bitcoin has emerged as one of the most compelling experiments in decentralized trust ever created.
Whether you’re saving in sats or building applications on its network, what matters isn’t philosophical debates about value—it’s whether Bitcoin works. And by every practical measure, it does.
The market will continue to decide its price. But its properties—scarcity, durability, portability—are here to stay.
And that makes all the difference.