---
pubDate: 2019-09-01
title: Golden Bubble
abstract: How solid is the value inflating Bitcoin?
tags:
  - blockchain
  - technology
---

## Introduction

A common argument is that Bitcoin and other cryptocurrencies have no _real
value_ because they have no backing asset with _intrinsic value_. Call these
kinds of cryptocurrencies "Intangibles." The conclusion of this arguemnt is that
Intangibles are really just thinkly-veiled Ponzi schemes, since their only value
is that in trading them to suckers for fiat currencies. I disagree with this
line of argument, and in this article I defend the following theses in
refutation:

- **I.** If a cryptocurrency is backed by something with _intrinsic value_, then
  it suffers undesired complications in its public valuation.
- **II.** An Intangible derives value through the utility it provides without
  relation to specified backing assets, similarly to fiat currencies.

## Contentious Complications

::: todo
:::

## Cyclic Evaluation

::: todo
:::