The Fundamental Value Of Bitcoin \ stacker news ~bitcoin

The Fundamental Value Of Bitcoin www.zerohedge.com/crypto/fundamental-value-bitcoin

2551 sats \ 8 comments \ @siggy47 20 Jan bitcoin

It’s the second layer of the internet and more valuable than price.

The author uses Flavio Copes’ Valley of Code to explain

why the value in Bitcoin lies more in the protocol than in the asset.

I wonder what developers think of this take. It's really an in depth analysis of bitcoin's value based on protocols and network architecture.

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763 sats \ 1 reply \ @kepford 20 Jan

I often explain the value of bitcoin as the protocol and network. That to me is one of the values often missed by the casual observer. The functionality of Twitter for example isn't the main value. Its the network. You could clone the code and you'd have something but no where near the value of Twitter.

The protocol is the law or rules and the fact that they follow game theory incentives make them valuable.

This is how I typically respond to people asking about intrinsic value.

94 sats \ 0 replies \ @siggy47 OP 20 Jan

100% agree. Well said.

530 sats \ 0 replies \ @grayruby 20 Jan

I am no developer but in my opinion it is a bit of a chicken and an egg thing. The protocol and the asset require each other to retain the features that give each one fundamental value. I think when a Bitcoin leaves the base chain to go to layer 2 or get wrapped on another chain, it retains it's economic value but not it's fundamental value because it is now inherently less secure, more confiscatable, more censorable (I know it is the transacting of the coin that can be censored but in a way that is also censoring those sats as well). In turn, I think when you move shitcoins, jpegs and other random data to fill up blocks on the base chain that it also loses some of it's fundamental value as an open, accessible network.

694 sats \ 0 replies \ @brave 21 Jan

Like TCP/IP, Bitcoin is in search of its secondary protocol (layer 2) to be the lightweight option that’s faster, less clunky, and cheaper. UDP, reminds me of Lightning Protocol for Bitcoin, or potentially Fediment or any other L2 that eventually becomes the layer that:

The comparsion of Bitcoin to TCP/IP holds weight from the article

282 sats \ 0 replies \ @DiedOnTitan 21 Jan

This article is attempting to articulate and position the Bitcoin protocol as well as it was laid out in the Bitcoin Handbook. It fails in this effort. It's the Fifth Layer, not the Second layer. Strongly recommend the Bitcoin Handbook by Anil Patel. It lays out all of the key concepts FAR more succinctly.

16 sats \ 1 reply \ @Max_Maxi 21 Jan

The concept of being able to own a piece of the network/protocol layer, buy owning Bitcoin has always been the most compelling thing for me.

With the Internet, you could only own stocks, etc. of businesses created on top of the network layer, and not the network itself.

While companies can be valuable, I’d prefer to own a piece of the “land” they are built on.

0 sats \ 0 replies \ @DiedOnTitan 22 Jan

This is an underrated post. Saylor said something to this effect: Buying bitcoin now is like buying farmland on Manhattan island in 1700.

0 sats \ 0 replies \ @BitcoinIsTheFuture 21 Jan

We have to realize just how early we are with the technology and its adoption. The layers will come with needs and time. When things become necessary Bitcoiners rise to the occasion of Freedom money!