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Intrinsic value Meaning

The "true," inherent value of an asset based on its fundamental characteristics, rather than its current market price. For a stock, this might be based on future earnings and dividends.

For a commodity like gold, it is based on its use in jewelry and electronics, as well as its historical scarcity. In the digital asset world, determining intrinsic value is difficult.

Some argue that Bitcoin has no intrinsic value because it has no "utility" other than being money. Others argue its intrinsic value comes from the "work" (electricity and security) required to produce it and the utility of having a global, uncensorable, and scarce medium of exchange.

For utility tokens, intrinsic value is often linked to the demand for the service the token provides. If you need a token to pay for decentralized storage or to access a specific network, the token's value is tied to the usefulness of that network.

Investors use this concept to decide if an asset is "overpriced" or "underpriced" relative to its real-world utility.

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