THE MYTH OF INTRINSIC VALUE
I generally have a very low opinion of Roger Ver (especially on economics) but on this particular issue he hit the nail on the head . . .
Sometimes differences arise due to a definition of terms. Intrinsic value refers to the value something has in its own right . . . for example, in terms of money gold is said to have intrinsic value in that it has other uses than money i.e. jewelry, technology, decoration, etc. Paper money also has intrinsic value, perhaps an equal or lesser value of discarded corn cobs. . . nevertheless, this is an intrinsic value.
Charlie Lee confuses imputed value with intrinsic value. . . “You have a new form of money that cannot be blocked from spending, cannot be reversed or taken away, cannot be counterfeited and cannot be devalued. These four properties of Bitcoin make it very valuable”
While these four properties make bitcoin very valuable they are not intrinsic value. None stand alone apart from the technology of bitcoin. These are qualities that are imputed on bitcoin due to the technology involved. The technology of Bitcoin is the unique stand-alone innovation it is.
But this is not Roger Ver’s argument. Roger Ver claims there is no such thing as intrinsic value. . . . Ver argues all value is imputed . . . even gold and paper have imputed value. . . and here he is spot on. Joel Bowman published a great article outlining the deeps roots of the intrinsic value myth.
The fact that gold has value as jewelry is not intrinsic, but imputed in the marketplace by men and women making choices. The fact that paper money is sometimes used as toilet paper is imputed by men and women making choices.
But why is this so?
On this issue Roger Ver is silent and we would differ markedly. I suspect Ver’s view would be that the individual is sovereign which is his underlying political view of anarcho/capitalism and non-aggression principle described by Roger Ver’s mentor Murray Rothbard who paraded under the banner of Austrian economics. . .
While on the surface anarcho/capitalism and the non-aggression principle are seductive. . . in fact, and in its clearly stated purpose . . . the philosophy is an anathema . . . by replacing the the Judeo/Christian concept of the Sovereignty of God with the lie of the sovereignty of the individual. . . in simple terms it places man above God . . . which has been the big lie since the Garden of Eden.
My point here is that the most seductive lies are also clothed in truth. . . as Bitcoin Standard Bearers it is important that we stay on point. . . and on this point Roger Ver is on solid ground, but he is clueless why.
“And I applied my heart to seek and to search out by wisdom all that is done under heaven. It is an unhappy business that God has given to the children of man to be busy with.” Ecclesiastes 1:13
UOG
PS: Working on many new things. . . hopefully will have fully developed website by mid-December. . . I received the message loud and clear when Medium did an Alex Jones erasure for 12 hours on all my posts, still without explanation . . . simply the sign of the times. Trying to schedule first public appearance with Tone Vays . . . will announce when we get it together.
Meanwhile, two week high is 6820–6840 area depending on exchange. . . . so everything is bearish except basis, but it has narrowed substantially. . . good time to concentrate on non-bitcoin projects. . . that is what I am doing. . . if we break two week highs . . . major resistance will be September highs at 7410. But unless we take out two week high we are likely headed down. . . and currently risk/reward favors shorts.
Hope this helps.
PPS: Just found the debate . . . Here it is. Charlie Lee correctly recognizes “if people don’t exist it doesn’t matter what we say” . . . but of course, we do exist and we exist in a certain way. . . uniquely in a certain image . . . and so words have meanings . . . and it matters what we say. . . and what we value.
