In a recent debate, CEO of Bitcoin.com, Roger Ver spoke with Charlie Lee, the creator of Litecoin [LTC] on various aspects of Bitcoin [BTC]. The debate covered various topics including Bitcoin [BTC] and its intrinsic value was one of the discussions.
The debate started by Charlie Lee talking about the four important aspects that gave Bitcoin an intrinsic value. The resistance to censorship, the immutability of the transaction, the costs of production and the supply of fixed money were the four important factors. Charlie talked about the intrinsic value of Bitcoin, where he stated that "Bitcoin has an intrinsic value, this makes the sound of Bitcoins and sound money is precious".
He also talked about the fact that Bitcoin is resistant to censorship, where he stated:
"It gives you something that can not be blocked by spending". Charlie also added that the immutability of the transaction allows us to make transactions that can not be canceled or removed. The cost of production would not allow counterfeiting and "would cause the creation of another"
In addition, Lee said that the supply of fixed money allowed Bitcoin not to be devalued. He added:
"You have a new form of money that can not be blocked by spending, can not be canceled or removed, can not be counterfeited and can not be devalued." These four properties of Bitcoin make it very valuable "
Roger had a different opinion and argued against the intrinsic value of Bitcoin. According to him, the value of Bitcoin was only in the mind of the person who uses the currency and would have no value if there was no human being in the world to give it that value. He added,
"There is no intrinsic value, the value was in the mind of the beholder and not in the object itself"
Roger argued against Charlie's statement on the cost of producing Bitcoin and accused him of promoting Karl Marx's theory of value at work. He said that the cost of production has nothing to do with value. He has declared:
"If I'm going to spend an hour preparing mud cakes that do not give them value because I've spent an hour preparing them or if I spend an hour making apple pies, apple pies are invaluable. not because they spend an hour doing them but because people enjoy apple pie and people do not like mud cake, so even if I spent an hour making apple pies or mud cakes , apple pies have a value and mud cakes have no value "
According to Roger, the cost of production had no correlation with the value of Bitcoins. It was rather the offer that was limited and helped the price of Bitcoin because prices were set by the forces of supply and demand. If the supply increases and the demand decreases, then the price decreases, while if the demand increases and the supply decreases, the price increases.
They concluded the debate by dissenting on the definition of intrinsic value. According to Roger, Charlie's position on the Bitcoin economy was completely wrong.