Goods have intrinsic value and currencies have monetary value. The former have intrinsic value because they generate cash flows or otherwise have utility. By contrast, monetary value exists despite an economic good having no intrinsic value.
|Goods with Intrinsic Value||Goods with Monetary Value|
|Copper||Emeralds, rubies, other gemstones|
Gold, the US dollar and bitcoin all have monetary value. Bitcoin has value as the first digital currency that no single person, organization or authority controls. Additionally, bitcoin has a known monetary policy. There will never be more than 21 million bitcoin and it will be issued at a known rate.
Bitcoin has none of the flaws in the fiat monetary system. Inflation erodes the value of official currencies, but not bitcoin. For example, a cup of coffee costs about 2 USD today compared with just 0.15 USD in 1920.