But if you fit to a infinitely parameterized ML-boosted quantum inverted hypersonic cosine it’s quite clear that it’s nothing more than a strong buy signal ready for a 125x breakthrough prior to the next decadium /s
All this lost and irrecoverable money is a good basis for valuation.
Also, one question: where are all these people who claimed that Bitcoin was a good inflation hedge ?
I think society is desperate for inflation hedges so perhaps it’s a strong marketing tool regardless of how accurate it might be.
Same place they always were: making bad takes in relative anonymity with zero consequences for being wrong. And that’s fine: you should be able to say dumb things anonymously with no consequences.
The consequences come for the people who make investments on the basis of anonymous shitposts
Lost coins are not support for intrinsic value. Use-value that doesn't depend on the market is intrinsic. Value from perceptions and perceived scarcity (even if the perception is driven by actual scarcity) is extrinsic.
But I don't think lost coins supports the existence of even extrinsic value; it might be an extrinsic >1 multiplier on value from some other source by increasingn scarcity, but it won’t provide a baseline of value if nothing else does.