A frequent argument made against Bitcoin and cryptocurrencies in general is that they have no "inherent value". As Adam Smith, one of the founding fathers of modern Economics understood, however, money has no inherent value! The purpose of money is to function as a safe store of value to enable the trade and financial transactions that take place under free market conditions.
Various standards of value such as gold and nation-state backed currencies have been proposed, but none of them has proved to be universal, nor has their price been immune to inflation and other disruptive influences; therefore none of these "currencies" have proven to have any inherent value, their value is based on human belief alone.
As technology, and especially information science, develops, the necessity for a safe, transparent digital currency becomes unavoidable, a currency that is not backed by nation states or banks, but is valued in virtue of being a safe storage of value and the best means for financial transactions.
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