The result is that volatility is endemic to the cryptocurrency and wild price swing is the norm rather than the exception. [...] The practical implication of not having intrinsic value is that bitcoin can leaving investors with nothing in the worst bear case. [...] This begs the question: why would anyone invest in the cryptocurrency when it has no intrinsic value? Imputed Value While bitcoin has no intrinsic value, it does have imputed value or the value we assign to something when it is unknown. [...] Not only is bitcoin scarce, it is scarcer than gold because the total supply of bitcoins is perfectly inelastic whereas gold’s is not. [...] Moreover, being prepared for a catastrophic meltdown of the cryptocurrency and its fallout is not just sound policymaking but also the hallmark of a thoughtful and forward-looking government.
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- Singapore
