Ines AissaniAmong the criticisms that some make of Bitcoin, the same refrain comes up again and again:
“Bitcoin has no intrinsic value.”
"It's a casino chip."
"It's based on nothing."
In the face of these criticisms, many investors, mainstream economists, and mainstream media continue to repeat the same old rhetoric without ever really delving into the issue.
So today, let's get things straight once and for all. Yes, Bitcoin has an underlying value. And it is even much more tangible than that of many traditional currencies which are based on... the monetary vacuum that is the Fiat system (especially since the end of gold convertibility in 1971).
Let's start with the right question: what is "value"?
Before we talk about Bitcoin, let's go back to basics.
The "value" of a thing is always subjective and contextual. Water has little value in the rain, but becomes precious in the desert. A work of art, a bottle of wine, a diamond, or even a dollar: their value exists because a human community agrees to recognize it. What would the Mona Lisa painting displayed in the jungle be if not a piece of fabric covered in paint?
gold has long been considered a store of value because of its physical properties: scarcity, durability, divisibility, portability.
Fiat currencies (euro, dollar, yen, etc.) are today based on a system entirely based on trust towards States and their central banks. Moreover, it is good to remember that the word "trustee" comes from Latin confidence which means "trust" as in "to rely on".
Before 1971, for example, the dollar was backed by gold: each note represented a certain amount of gold held by the central bank.
From In 1971, this link was broken by President Nixon. : the dollar has become entirely fiat. It is no longer backed by any physical asset, but only by trust in the American economic and political system.
And this is where Bitcoin comes in with a completely new model.
The Foundations of Bitcoin's Underlying Value
Bitcoin is based on several fundamental pillars that give it an objective and unique value in monetary history.
1️⃣ Programmed scarcity
- 21 million bitcoins. Not one more.
- This absolute rarity is written into its protocol.
- No government can change this limit. No Bitcoin-style "printing money."
👉 Scarcity is the first source of value.
For comparison:
The dollar money supply (M2) has quadrupled in 4 years. Bitcoin, on the other hand, has remained unchanged since its creation.
2️⃣ Actual production cost (Proof-of-Work)
Unlike fiat created with a single click, each bitcoin is mine, that is to say produced via a complex mathematical calculation which requires:
- Energy (electricity)
- Hardware (ASICs)
- Time and resources
Proof-of-Work thus gives Bitcoin a tangible and measurable production value, much like gold mining. Bitcoin isn't created for free, contrary to popular belief.
👉 It is an asset with an extraction cost, which gives it a floor of economic value.
3️⃣ Network security and inviolability
The Bitcoin network is today:
- The most secure in the world.
- Powered by millions of interconnected machines.
- Resistant to censorship, attacks and manipulation.
This decentralized security has a cost and immense engineering value. Bitcoin is not "an application on a server." It is a global network, without equal.
4️⃣ Portability and extreme divisibility
- 1 bitcoin = 100 million satoshis.
- Transferable in minutes anywhere on Earth.
- Independent of any border, any bank, any bureaucracy.
A simple QR code can transport an entire fortune halfway around the world. Try doing that with gold bars or banknotes...
👉 This monetary portability is unprecedented and represents colossal value in a globalized world.
5️⃣ Neutrality and resistance to censorship
Bitcoin has no president, no CEO, and no employees tasked with promoting it. It's unclear who's behind this crazy project, and that's a good thing. Bitcoin's creator didn't create this software to become rich or famous, but to provide a solution to a broken monetary system.
- No state behind it.
- No political manipulation.
- No account freeze.
- No arbitrary confiscation.
In a world where sanctions, bank blockades and capital freezes are becoming political weapons, Bitcoin remains one of the few forms of truly sovereign property.
👉 Financial sovereignty has immense value, is not it?
6️⃣ Algorithmic trust
Unlike central banks, where everything depends on a few individuals around a table, the Bitcoin protocol is predictable, known in advance and transparent.
- Known monetary inflation.
- Immutable rules of the game.
- No “coup de théâtre” from the ECB or the FED.
👉 Algorithmic predictability is a form of trust far superior to human “trust” in fiat currencies.
Let's compare: Bitcoin vs Fiat
| Criterion | Bitcoin | Fiat currency |
|---|---|---|
| Limited offer | Yes (21M max) | No (unlimited) |
| Decentralized | Yes | No (central banks) |
| Transparency | Open code | Opaque decisions |
| Network security | Very high | Depends on political stability |
| Inflation under control | Yes | No |
| Possible confiscation | Very difficult | Easy |
| Portability | Excellent | Physically limited |
Those who still argue that “Bitcoin has no value”
Most of these criticisms come from two camps:
1️⃣ The Honest Ignorant : They have never seriously considered the subject. The concept of Bitcoin is beyond them.
2️⃣ The actors of the fiat system : who have every interest in discrediting Bitcoin, because it calls into question their power.
But the reality is this: Bitcoin is based on unique economic, technological and monetary properties. It's a programmed monetary asset, which has a structural value far more robust than any currency created by decree.
In reality, it is fiat based on nothing
Since the abandonment of the gold standard in the 70s (thanks Nixon again), the dollar, the euro and all their friends have been floating in the void.
Their value? Trust in the government.
Their production? Unlimited and inflationary.
This is the real system that is based on nothing.
Bitcoin, on the other hand, has recreated a rare asset, resistant to arbitrariness, secured by proof of work, and carried by millions of individuals who recognize its fundamental properties.
In conclusion
Not only does Bitcoin have an underlying value, but it is arguably the first monetary asset in human history to have a value that is perfectly measurable, predictable and verifiable by code.
- Its rarity.
- Its production cost.
- His safety.
- His neutrality.
- Its portability.
- His sovereignty.
This is the true value of Bitcoin.
And that's what Bitcoiners see. And those who don't...sleep peacefully in the crumbling fiat system.
Others are building their financial sovereignty today.
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