Biggest Misconception about Bitcoin

I feel like the biggest misconception about bitcoin is that "it doesn't have any intrinsic value". In thinking this way, people assume that money must be some kind of physical commodity to have value. Money, though, is for the sole purpose of exchanging things that do have intrinsic value.

I think this misconception in thinking is similar to the ancient way of thinking that written words should look like the objects they describe. Writing evolved from hieroglyphics to more abstract symbols when people hit on the idea that the symbol need not be similar to the object it is referring to. Money in a way is like a certificate of service. E.g. if I perform a service of value for someone, but they have no service or product that I want, the dollar bill or piece of gold they give me is like a certificate that I did something of value for them, and, as a result, I can give this certificate to someone else in society who will then provide me with something of value in return. The certificate need not be something physical. Pure digital form will serve the purpose.

Money is a good store of value when it's easily divisible, indestructible, and easily transportable. Bitcoin, while not perfect, serves these purposes well. Money need not be edible or have any value outside of it's usefulness in exchange. The fact that gold is beautiful helps make it something that many people will accept in trade, but even beauty is not a required characteristic of a good medium of exchange. Once gold starts circulating as a store of value and not for the purpose of being used as jewelry, people will accept it merely for it's usefulness as a savings vehicle. It could also be argued that bitcoin is even more "beautiful" than gold due to it's design ingenuity which gives it symbolic value.

So, money should not be confused with the tangible wealth it is used to circulate.