Definition ∞ Intrinsic value refers to the inherent worth of an asset, derived from its fundamental characteristics rather than external market sentiment. For traditional assets, this might relate to earnings potential or tangible resources. In the context of digital assets, arguments for intrinsic value often consider network utility, security, decentralization, and scarcity. This concept helps differentiate assets based on their underlying properties and functions.
Context ∞ The concept of intrinsic value for digital assets is a persistent and often contentious debate within financial and crypto communities. Skeptics argue that many digital assets lack traditional income streams or physical backing, while proponents highlight their technological utility and network effects. Future discussions will likely continue to refine how inherent worth is assessed for novel digital forms of value.
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