This is not what people mean by intrinsic. You can't spend the dollar just because it's a dollar. It requires a huge amount of social structure and (honestly) faith for it to be spendable. You couldn't "use" a dollar if you were the last human on earth.
> Is it that everything that's useful, with the exception of money, has intrinsic value?
Fiat money, collectibles (like baseball cards), poker chips at a casino, gift cards, credit cards, checks... regardless of how useful they are right now for someone, they have no intrinsic value. Their value is imbued on them by the context of society.
> Also how do you measure/quantify the intrinsic value? Is it derived from supply vs demand like economic value?
Mostly you don't. It's more of a binary concept.
There are situations where companies have to do it, like if they're looking at bankruptcy and need to liquidate assets.
For example, if you have 500 tractors and you have no idea how well any of them run, you can calculate the lowest-possible value for the tractor (which would essentially be its intrinsic value) by looking at:
This is not what people mean by intrinsic. You can't spend the dollar just because it's a dollar. It requires a huge amount of social structure and (honestly) faith for it to be spendable. You couldn't "use" a dollar if you were the last human on earth.
> Is it that everything that's useful, with the exception of money, has intrinsic value?
Fiat money, collectibles (like baseball cards), poker chips at a casino, gift cards, credit cards, checks... regardless of how useful they are right now for someone, they have no intrinsic value. Their value is imbued on them by the context of society.
> Also how do you measure/quantify the intrinsic value? Is it derived from supply vs demand like economic value?
Mostly you don't. It's more of a binary concept.
There are situations where companies have to do it, like if they're looking at bankruptcy and need to liquidate assets.
For example, if you have 500 tractors and you have no idea how well any of them run, you can calculate the lowest-possible value for the tractor (which would essentially be its intrinsic value) by looking at:
- how much is the metal worth?
- what are the costs of finding a buyer?
- what will a buyer pay for the metal?
(Assuming the tractor doesn't operate at all.)