![039 mona-lisa-Pixabay1.jpg](https://cdn.steemitimages.com/DQmTNyKvdfo9wyG53FdXdi4qgxKM1DaCGkTYaPtyot8HEsC/039%20mona-lisa-Pixabay1.jpg)

Federal Reserve Chairman Jerome Powell said Wednesday that digital currencies, like Bitcoin, have “no intrinsic value” and are only good if you are trying to hide or launder money. He also declared in the House Financial Services Committee: cryptos aren’t a store of value or a payment tool. He argued again with the well known extreme volatility of cryptocurrencies.  *[Newsbtc](https://www.newsbtc.com/2018/07/19/fed-chairman-cryptos-dont-have-intrinsic-value-denies-the-crypto-threat/
)*
## Never ending discussion
I doubt what he said, Bitcoin is a payment tool, I also paid with it several times, the last time my phone bill (an international VoiceIP-service). Maybe Powell should try it someday. But this intrinsic value is bothering me much more, some economists are arguing with it since 2013 and the discussion seems never to end. They say Bitcoin or cryptos are worth nothing because they don’t have this value.
So let’s see the definition:

> intrinsic value refers to the value of a company, stock, currency or product determined through fundamental analysis without reference to its market value. It is also frequently called fundamental value… calculated by summing the discounted future income generated by the asset to obtain the present value. [(Wikipedia)](https://en.wikipedia.org/wiki/Intrinsic_value_(finance))
## Gold, stocks, and bonds do have
So, Bitcoin has no future income, pays no interest, dividends. But, does have gold a future income? Not really, I see here the same case. But some people say gold has intrinsic value because it can be used to fabricate jewelry and it has also industrial uses. 

Stocks, bonds, investment trusts, and funds, in theory, pay or can pay future incomes (interests, dividend payments, cash liquidation distribution). That are clear cases.
## Interest paying Bitcoins
But I can’t see the future income of fiat currency either, except the case it pays interests. But then, we don’t talk anymore about cash, the interests are coming from savings accounts or bank deposits, bonds, loans etc. Can Bitcoin deposits or loans also pay interests? In theory, of course, yes. 

I’d like to mention a lot of other things that clearly have no intrinsic value. Does it have an e-mail? No, of course, not. But, does have some value an important e-mail with valuable data? Ask Hillary Clinton… Yes, a special e-mail can be very-very valuable. 
## Mona Lisa and the Bitcoin
Does have intrinsic value a painting, for example, the famous Mona Lisa of Leonardo Da Vinci? I think so, because if you exhibit it in a museum you get income from the admission fees. But do have intrinsic value the not so famous pictures, which you can’t exhibit? 

Do have value all the nice digital pictures on Pixabay.com or Alphacoders.com which you can download for free? Are they worthless, or only cheep? (Alphacoders.com allows private use only.) Which is the intrinsic value of other digital contents? Animated movies existing only on the internet? Free e-books?
## Intrinsic hyperinflation
Does have intrinsic value Venezuela’s currency, the Bolívar? The interests in the country are officially by [21-22 percent p. a.](https://tradingeconomics.com/venezuela/interest-rate), so there is some future income, yes. But the inflation is by several hundreds of percent, so this income, in reality, is heavily negative. 
## The value of brain
Did space research, spaceships, Moon landing generate any income stream? I think, almost nothing, compared with the high expenses. But it gave a lot of new knowledge, inventions, technologies to humanity.

Does have intrinsic value a new technology, a new method, a new, brilliant idea? A free to use computer game or educational program kids like very much? A free software without any income for the creators but much utility for users? Does have Freedom? Democracy? Cooperation? Peace? Happiness? 
## Price of humans
The soul? Spirituality? What is the intrinsic value of a human life, what creates this value? Only the future incomes of that person, or something more? So, maybe, there are other values in the modern world that are not fundamental, not cash-flow driven, not intrinsic, but important. 
![brain-20424-pixabay.jpg](https://cdn.steemitimages.com/DQmasT57jUxPpJthfnCRPB1EJQTwyW3NpHcxtuC9xisCxn8/brain-20424-pixabay.jpg)
What gives any intrinsic value to Bitcoin? Many crypto-fans are saying, the utility of the technology, the use cases, in the first place, as paying system, currency. The possibility of new business models in the internet, smart contracts, quick, cheap and reliable distributed ledgers. Others are talking also about political value, see decentralization, independence from the authorities, national banks, governments. *(Like authors of [Forbes.com](https://www.forbes.com/sites/jasonbloomberg/2017/06/26/what-is-bitcoins-elusive-intrinsic-value/#265269e97194) and [Investopedia.com](https://www.investopedia.com/articles/investing/091814/what-bitcoins-intrinsic-value.asp))*

> An option is said to have intrinsic value if the option is in-the-money. When out-of-the-money, its intrinsic value is zero. (Wikipedia)

## The biggest startup
What if Bitcoin is an option? Like share options on stock exchanges?  An option to participate in a new technology, which one is living its baby years, is making the first steps, like internet 20-25 years ago. An option to participate in the biggest startup in the world. Bitcoin and other leading cryptocurrencies, together, or separately. 

And if you see the long-term price chart of Bitcoin, this option is still “in-the-money”, winning. 

*Some of my other posts about Bitcoin and value:
[Is The Damned Volatility of Bitcoin At Last Decreasing?](https://steemit.com/bitcoin/@deathcross/is-the-damned-volatility-of-bitcoin-at-last-decreasing)
[Bitcoin, Fiat, Gold – living happily ever after?](https://steemit.com/bitcoin/@deathcross/bitcoin-fiat-gold-living-happily-ever-after)
[The Shocking Truth About The Mass Adoption](https://steemit.com/bitcoin/@deathcross/the-shocking-truth-about-the-mass-adoption)*

### *Disclaimer:*
*I am not a financial advisor and this content in this article is not a financial or investment advice. It is for informative purposes only, or simply to make you think, entertain, increase testosterone and adrenaline level. Consult your advisers before making any decision.*

### *Info:*
You can message me in [Discord](https://discordapp.com).
*(Photos: Pixabay.com)*