Skip to main content

What’s the true value of bitcoin? A Morgan Stanley analyst says it may be zero

Bitcoin Cash
Image used with permission by copyright holder

According to Coindesk, bitcoin is currently worth about $13,000, but Business Insider reports that Morgan Stanley’s James Faucette suggest the true value of bitcoin might be zero.

Though Faucette’s report, entitled “Bitcoin Decrypted,” did not give an actual value for bitcoin, a section called “Attempts to Value Bitcoin” gave some insight into his thoughts on the currency and why it can be so difficult to determine bitcoin’s value.

The first point that he considered was whether or not bitcoin could be considered a true currency. He concluded that due to the fact that there is no interest rate attached to bitcoin, it could not be considered a true currency the way the dollar or the euro are considered currencies.

He did concede that bitcoin shared some similarities with precious materials such as gold, but noted that, unlike gold, bitcoin has no real-world applications. Gold is used in jewelry and electronics, whereas bitcoin exists only as data. That being said, he admitted that the cryptocurrency held some value due to the fact that investors were willing to give it value.

He discussed the value of bitcoin as a payment network and conceded that it did hold some value in that regard. However, he also noted there were some limitations to its usefulness. The two issues Faucette cited were the fact that it is a difficult payment network to scale and does not charge a transaction fee.

Bitcoin is accepted by a small number of companies, but, as Faucette points out with his chart, that number is small and getting smaller over time.

bitcoin acceptance chart
Image used with permission by copyright holder

“If nobody accepts the technology for payment then the value would be 0,” Faucette said.

Of course, bitcoin currently does hold some value solely due to the fact that it can be exchanged for currency. However, the question that Faucette seems to be trying to address is whether or not bitcoin has intrinsic value. Is it truly worth anything or is its value constructed? To an extent, one could argue that fiat currencies such as the dollar hold no intrinsic value, but the faith and full credit of the United States government is still a very real thing, and there is no such institution supporting bitcoin.

Eric Brackett
Former Digital Trends Contributor
4 simple pieces of tech that helped me run my first marathon
Garmin Forerunner 955 Solar displaying pace information.

The fitness world is littered with opportunities to buy tech aimed at enhancing your physical performance. No matter your sport of choice or personal goals, there's a deep rabbit hole you can go down. It'll cost plenty of money, but the gains can be marginal -- and can honestly just be a distraction from what you should actually be focused on. Running is certainly susceptible to this.

A few months ago, I ran my first-ever marathon. It was an incredible accomplishment I had no idea I'd ever be able to reach, and it's now going to be the first of many I run in my lifetime. And despite my deep-rooted history in tech, and the endless opportunities for being baited into gearing myself up with every last product to help me get through the marathon, I went with a rather simple approach.

Read more
This bracelet helps you fall asleep faster and sleep longer
woman-in-bed-wearing-twilight-apollo-on-ankle

This content was produced in partnership with Apollo Neuroscience.
Have you been struggling to get the recommended seven hours of sleep? It's always frustrating when you get in bed at a reasonable time, then toss and turn for a hours before you actually sleep. The quality of that sleep is important too. If you're waking up multiple times during the night, you're likely not getting the quality REM cycle sleep that truly rejuvenates your body. If traditional remedies like herbal teas and noise machines just aren't helping, maybe it's time to try a modern solution. Enter the Apollo wearable.

Now we understand being a little skeptical. How can a bracelet on your wrist or ankle affect your sleep patterns? Certainly the answer to a better night's sleep can't be so simple. We considered these same things when we first heard of it. We'll dive deeper into the science behind the Apollo wearable, but suffice it to say that many people have experienced deeper, uninterrupted sleep while wearing one.
A non-conventional approach to better sleep

Read more
The 11 best Father’s Day deals that you can get for Sunday
Data from a workout showing on the screen of the Apple Watch Series 8.

Father's Day is fast approaching and there's still time to buy your beloved Dad a sweet new device to show him how much you love him. That's why we've rounded up the ten best Father's Day tech deals going on right now. There's something for most budgets here, including if you're able to spend a lot on your loved one. Read on while we take you through the highlights and remember to order fast so you don't miss out on the big day.
Samsung Galaxy Tab A8 -- $200, was $230

While it's the Plus version of the Samsung Galaxy Tab A8 that features in our look at the best tablets, the standard variety is still worth checking out. Saving your Dad the need to dig out their laptop or squint at a small phone screen, the Samsung Galaxy Tab A8 offers a large 10.5-inch LCD display and all the useful features you would expect. 128GB of storage means plenty of room for all your Dad's favorite apps as well as games too. A long-lasting battery and fast charging save him the need for a power source too often too.

Read more