When discussing the value of Bitcoin, much of the debate hinges on how we define "value" itself. Too often, conversations stall at the claim that "Bitcoin has no intrinsic value," presented not as a neutral observation but as a criticism. This argument typically follows a familiar logic: things without intrinsic value aren’t worth investing in; Bitcoin lacks intrinsic value; therefore, Bitcoin isn’t worth investing in.
But before accepting this conclusion, we need to examine what "intrinsic value" really means—and whether the standard financial definition tells the whole story.
Rethinking Intrinsic Value
In traditional investing circles, intrinsic value refers to an asset’s inherent worth based on tangible fundamentals—like a company’s earnings, assets, or cash flow. By this measure, stocks in profitable companies have intrinsic value because they represent ownership in enterprises that generate goods, services, and revenue. Bitcoin, which produces nothing tangible and pays no dividends, is said to lack this kind of value.
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However, there’s another philosophical understanding of intrinsic value—one rooted in centuries of ethical thought from thinkers like Aristotle, Kant, and Mill. In this context, intrinsic value means value in itself, independent of utility or external relationships. Something with intrinsic value is good not because it leads to something else, but simply because it is good.
By contrast, extrinsic value comes from usefulness—how well something serves a purpose. A bicycle has extrinsic value because it helps you travel. Wine has extrinsic value because it brings pleasure. Money has extrinsic value because it can be exchanged for goods and services.
If we apply this deeper definition, does anything commonly considered valuable—stocks, gold, real estate—truly have intrinsic value?
Do Stocks or Gold Have Intrinsic Value?
Let’s test the idea. Does a share of Apple stock have value in itself? Not really. Its worth depends entirely on Apple’s ability to innovate, sell products, generate profits, and satisfy investors. Remove those factors, and the stock becomes meaningless.
What about the iPhone itself? It’s valuable because it connects us to information and loved ones. But even connection isn’t intrinsically valuable—it matters because it contributes to knowledge, safety, or emotional well-being. And those, in turn, matter because they contribute to… happiness.
This chain of reasoning reveals a powerful insight: almost everything we value does so because it contributes to human well-being—particularly happiness.
The Case for Happiness as the Only Intrinsic Value
Many philosophers argue that happiness (or well-being) is the only thing with true intrinsic value. Why?
- When asked “Why is happiness valuable?”, most people respond with variations of “It just is.” There’s no deeper justification needed.
- “It makes me happy” is universally accepted as a valid reason for pursuing something—no further explanation required.
- Nearly every goal—wealth, health, relationships, success—is pursued because we believe it will make us happier.
Even critics of Bitcoin don’t claim it produces happiness directly like art or friendship might. But that doesn’t mean it lacks value. Instead, its value lies in its capacity to enable conditions under which people can pursue happiness more freely.
How Bitcoin Creates Value in the Real World
Bitcoin may not have intrinsic value in either the financial or philosophical sense—but that doesn’t mean it lacks practical value. Millions use it daily for reasons deeply tied to personal freedom, security, and opportunity:
- In countries experiencing hyperinflation (like Venezuela or Zimbabwe), people turn to Bitcoin as a more stable store of value than their collapsing local currencies.
- In regions with financial censorship, individuals use Bitcoin to send money across borders without government interference.
- Privacy-conscious users adopt Bitcoin to avoid handing over sensitive financial data to large corporations like PayPal or Visa.
- Investors buy Bitcoin believing others will continue to find it useful—creating a network effect that reinforces its role as a digital scarce asset.
Each of these use cases reflects a fundamental human desire: autonomy over one’s life and resources. And when people gain more control over their financial futures, they often experience greater peace of mind, dignity, and yes—happiness.
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Bitcoin vs. Traditional Investments: A False Dichotomy?
Critics often contrast Bitcoin with “real” assets like stocks or real estate. But let’s be honest: the value of an index fund isn’t inherent either. It depends on market sentiment, economic conditions, corporate performance—and crucially, on collective belief in the system.
Like Bitcoin, Apple stock derives its value from perception, trust, and future expectations. If investors suddenly lost faith in capital markets, both would plummet. The difference? Bitcoin operates outside centralized control, offering an alternative when traditional systems fail.
So rather than saying “Bitcoin has no intrinsic value,” we should ask:
“What problems does Bitcoin solve—and how does that improve people’s lives?”
The answer reveals its real worth.
Frequently Asked Questions
Q: If Bitcoin isn’t backed by anything physical, how can it be valuable?
A: Most modern money isn’t backed by gold or commodities either. Value comes from trust and utility. Bitcoin’s scarcity, portability, and resistance to censorship give it functional value in a digital world.
Q: Isn’t Bitcoin just speculation?
A: Early adoption involves speculation, yes—but so did the internet in the 1990s. Speculation often precedes widespread utility. Today, millions use Bitcoin not to speculate, but to protect wealth and access financial freedom.
Q: Can something be valuable without having intrinsic value?
A: Absolutely. Virtually all material goods—from smartphones to stocks—are extrinsically valuable. Their worth comes from what they enable us to do, not from existing in themselves.
Q: Is Bitcoin environmentally harmful?
A: This concern is valid. However, much mining now uses renewable energy, and innovations like the Lightning Network reduce transactional energy costs significantly.
Q: How does Bitcoin compare to gold?
A: Both are scarce and decentralized. But Bitcoin is more portable, divisible, verifiable, and easier to transfer globally—making it better suited for the digital age.
Q: Could Bitcoin ever become worthless?
A: Any asset can lose value if adoption collapses. But with growing institutional custody solutions and global user demand—even amid volatility—its resilience suggests staying power.
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Final Thoughts
Saying Bitcoin lacks intrinsic value isn’t a critique—it’s a tautology. So do iPhones, stocks, and fiat currencies. What matters isn’t whether something has metaphysical worth, but whether it solves real problems for real people.
Bitcoin empowers individuals in oppressive economies. It protects savings from inflation. It enables peer-to-peer transactions without intermediaries. These aren’t trivial benefits—they’re lifelines for millions.
In the end, value isn’t found in ledgers or balance sheets alone. It’s measured in freedom gained, risks avoided, and opportunities created.
And if that leads to greater human flourishing? Then perhaps Bitcoin’s greatest value was never on the blockchain—it was in the lives it changed.