In Aristotle’s work, intrinsic value specifies any value a product has individually to become money. So its intrinsic value is because of its useful characteristics just like a commodity (rather of as money). However, Bitcoin is useful only as money. Then, apparently Max Keiser’s argument might be wrong. Due to not useful just like a commodity, Bitcoin Exchange does not have intrinsic value.
Bitcoin Exchange Versus Aristotelian Intrinsic Value: A Match
However, there is a scenario through which all money becomes a commodity. That scenario is its exchange for just about any different kind of money. Whenever bought or offered, money becomes a commodity.
Transacting Versus Transacted Money
For people to sell or buy an economic object, that object must remain its mere possibility of being money: actual money is only able to play in the active role — since the buying object — in any transaction, instead of its passive role — since the bought or offered object. It ought to be only possiblity to play this last role. Then, because money always belongs both in a genuine or just possible transaction, we must think of it as when actual or active, transacting money, then when just possible or passive, transacted money.
As thus, whenever transacted, money becomes a commodity.
So as actual, transacting money, Bitcoin does not have intrinsic value. However, as just possible, transacted money, it includes an important value. For the reason that, whenever bought or offered, Bitcoin’s intrinsic financial characteristics become its commodity characteristics.
Therefore, if Bitcoin Exchange increased to get really the only currency around the world, its intrinsic value would vanish. With no other currency to buy it and for which to promote itself, Bitcoin forget about may well be a commodity. It may be actual money. Bitcoin’s intrinsic value is determined by its getting the opportunity to deal with other currencies (just like a transacted, bought or offered commodity).
Privacy as Bitcoin’s Intrinsic Value
Still, privacy does not itself constitute an essential price of Bitcoin:
There’s a big difference between transaction privacy and public-key privacy.
There’s a big difference between exchange value according to and being itself whichever utilities or characteristics.
The privacy of Bitcoin Exchange is determined by Bitcoin’s public-key privacy, that is among its characteristics. Likewise, its intrinsic value possibly is determined by its allowing transaction privacy, that is among its utilities. Public-key privacy, by searching into making transaction privacy possible, enables us to supply Bitcoin its intrinsic value just like a bought or offered commodity (for example, in Bitcoin exchange). Intrinsic value could be the exchange price of utilities brought on by intrinsic characteristics.
Finally, Bitcoin has other characteristics than public-key privacy, like its ubiquity and security — both unknown to Aristotle. Individuals characteristics also make Bitcoin useful, despite diversely. Because of these utilities — instead of just because of transaction privacy — that individuals can offer Bitcoin its financial value.