The view you present challenges the traditional view of value that only physical objects have value. This view states that physicality is not the only or most important factor that gives a good value, but rather that scarcity and utility are key drivers of value.
Limitations of physicality
Non-signs of value
Physicality itself does not automatically give an object financial value. For example, air, seawater, sand, dirt, and stone are all physical objects, but because of their abundance, they are not considered valuable commodities in a financial sense.
Burdens of physicality
Physicality can be a burden because physical goods require storage, protection, and transportation, which all impose additional costs and complexity.
Value of gold
Scarcity and utility
Gold's value is derived not simply from its physical properties, but from its scarcity, resistance to corrosion and chemical change, and its utility as jewelry and a status symbol.
Beyond physical properties
Gold's value lies in its difficulty in increasing its supply and its many applications, not just because it is a physical object.
Bitcoin and value
Digital scarcity
Similar to gold, Bitcoin's value comes largely from its scarcity. Bitcoin’s supply is fixed, and this digital scarcity is at the core of its value.
The Advantage of Non-Physicality
As a non-physical asset , Bitcoin is exempt from many of the issues associated with physical goods, such as storage and protection. Its non-physical nature makes it easily transferable and divisible, adding another dimension to its value.
In the modern economy, the idea of value has evolved beyond pure physicality. Scarcity and utility are key drivers of the value of goods. The example of Bitcoin particularly highlights how non-physical assets can gain and maintain value in the digital age due to their unique properties. This understanding challenges traditional values and provides new perspectives on how we value and understand different types of assets.