If Bitcoins aren't tied to a conventional currency how did they get so valuable?

wuvdoll

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Quote from: REF Crypto on July 29, 2018, 10:08:28 PM

If Bitcoins aren't tied to a conventional currency, how did they get so valuable?

They are not "tied" to it but there are a lot of people who need to use fiat currency in order to buy and sell bitcoin, there are not enough places that accepts bitcoin so you can live with it forever, if every shop and store you buy things and all cafes you eat and all taxis fares you take were capable of accepting bitcoin than you wouldn't need to change your bitcoin to fiat currency but unfortunately that is not there yet.

Hence, this is the reason why people calculate the success of bitcoin with fiat currency, not really comparing the price of fiat and bitcoin but basically comparing the purchasing power of bitcoin and fiat. It doesn't mean it is "tied" but it means it is compatible, the comparison is the reason why we know how much bitcoin can buy in the real world right now.

We can't say "I purchased a bread for 150 satoshis today" yet but we can say "I purchased a bread for 1 dollar which is roughly 150 satoshi" which is the reason why it exists.

Bitfling

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Quote from: REF Crypto on July 29, 2018, 10:08:28 PM

If Bitcoins aren't tied to a conventional currency, how did they get so valuable?

Bitcoin valueable because the network security and bitcoin is store of value. bitcoin not tied with conventional currency or fiat because bitcoin is decentralized cryptocurrency

metalglowd

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Quote from: talenah kotang on July 30, 2018, 09:13:21 AM

Bitcoin is valuable because its supply is limited and the demand is high, that's where bitcoin is valuable because of its expensive price and profits that can also be a lot.

demand is actually flexible, depending on the condition of a market, so it is not always high demand is a benchmark that bitcoin will always be valuable. It is possible that later bitcoin will continue to weaken and the price will only be stable at that number

itsik78

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Cryptocurrency is based on its intangibility - it was created on the Internet. This may scare someone, however, it is only remnants of imposed stereotypes. Most of the money "lives" on the servers of large institutions. Clients deposit money that appears in your account, while tangible accounts are issued to others.

Spaffin

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In order to have a certain value, it is not necessary to be bound to any existing currency. The consumer value of any item or object improves, and its price increases. In relation to cryptocurrency, its price is determined by the demand for it. Cryptocurrency is not tied to the currency, it is compared with it. Thus, it has a certain value.

xuan87

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The reason bitcoin cantik get value is because there are supply and demand the higher the demand then the more valuable it become,so the one they determine the price is the people,this is one of the advantage of decentralized investment, there are no politic or other outside factors

guoyu78

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Quote from: squog on November 18, 2018, 10:22:29 PM

Much like how gold and other things got expensive, it is how much people are willing to pay for it. You have to remember thst crypto currency is based on supply and demand (like any other commodity) and price would move depending on how much people are willing to pay for it. I just don't know the technical side of it.

Usually the thing with something that has value. Sure, a lot of people may be seeing it more as a speculative asset right now, but that does not change the fact that bitcoin has a lot to offer to so many of us in the long run considering how we will surely get to be able to have freedom from banks and all the governmental policies that has been screwing up a lot of things over the years.

It is just very simple, over time as demand keeps increasing, and there is limited supply as we all know, which is what makes bitcoin deflationary; it is the need for it that will keep driving the value up.

eaglewhite80

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Quote from: squog on November 18, 2018, 10:22:29 PM

Much like how gold and other things got expensive, it is how much people are willing to pay for it. You have to remember thst crypto currency is based on supply and demand (like any other commodity) and price would move depending on how much people are willing to pay for it. I just don't know the technical side of it.

That is usually the thing. As long as people see the value for it and they are willing to pay anything for it based on the fact that it gives them that purpose they are looking for, I am certain this is a space we all know is going to give a lot of people that purpose. Uganda is an example, in which we see the unbanked really making all attempt to at least take hold of their own future, and we see the likes of hyper inflated ridden countries like Zimbabwe, utilizing the crypto space to at least, be able to do transactions all over the globe, after a dead economy. So, there is a lot of value to look out for in this space, and based on demand for it, that is what typically bring about the growth.

andrei56

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Because there are not many of them and because it is very easy to exchange bitcoins among people, if you wanted to send a huge amount of money from one bank account to the other there will be a lot of problems along the way and it is possible that banks could freeze your money, but that is not a problem with bitcoin and that is why bitcoin has value.

el kaka22

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Quote from: REF Crypto on July 29, 2018, 10:08:28 PM

If Bitcoins aren't tied to a conventional currency, how did they get so valuable?

Supply and Demand. People all around the world get bitcoin for couple reasons, some buy it because they believe it will get higher in price and make them rich, some buy it because they want to buy some other crypto but can't buy it directly with fiat, some buy it because they want to gamble. I can continue to list the reasons why people buy bitcoin but in short people just buy it for some reason and since they buy it sometimes the price goes up.

Depending on how many people are selling their coins and how many people are buying coins the price either goes up or down. It looks "valuable" to you but the price has actually reached 20 thousand dollars at one point which shows that people actually bought bitcoin at 20 thousand dollars thinking it would still go up. Supply and Demand determines the price.

richmcrich

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Quote from: yugyug on November 19, 2018, 12:20:30 AM

In this modern day of trading like usual buy and sell of goods and other form of exchange,fiat or national currency was the standard medium of exchange. Over a period of time as inflation grows the vale of currency gets lower, so bitcoin try solve this anti-inflation circumstances but it failed that's why bitcoin was traded as part of assets or commodity but not an actual currency so far.

All about demand and supply and what makes bitcoin even more special is the deflationary features, so over time, with increase in demand, it is pretty obvious how the space will definitely get to develop and grow in value as well. It is already backed by the value it creates on its own, so it does not have to be backed by anything else.

This is a decentralized currency and every one of us as long as we accept the price we are paying for it, then that is what would always keep making the value to grow stronger. It is necessary to understand that with real life usage, and as store of value, even if the price is $100m to a bitcoin and people see the need to have to use it, they will most definitely do.

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Quote from: REF Crypto on July 29, 2018, 10:08:28 PM

If Bitcoins aren't tied to a conventional currency, how did they get so valuable?

Cryptocurrency does not necessarily need to be tied to a regular currency in order to have a certain value. The value of a cryptocurrency is acquired by the fact that it becomes useful for people, creates convenience and comfort in its financial activities. Cryptocurrency has only a ratio in price with a regular currency, but not a price peg to it.

Abosede

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When there is a demand for something and the supply is limited,you should such thing to grow in value.The price is practically demand by the community.The more the world at large see a need for BTC the more it will grow in value,the moment the community don't see a need for it anymore, it will surely drop.

wahyu wida

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Quote from: squog on November 18, 2018, 10:22:29 PM

Much like how gold and other things got expensive, it is how much people are willing to pay for it. You have to remember thst crypto currency is based on supply and demand (like any other commodity) and price would move depending on how much people are willing to pay for it. I just don't know the technical side of it.

indeed the same as a market, if demand is high and supply is small, price will soar. besides that of course bitcoin technology is the answer to future evolution

yugyug

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In this modern day of trading like usual buy and sell of goods and other form of exchange,fiat or national currency was the standard medium of exchange. Over a period of time as inflation grows the vale of currency gets lower, so bitcoin try solve this anti-inflation circumstances but it failed that's why bitcoin was traded as part of assets or commodity but not an actual currency so far.

squog

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Much like how gold and other things got expensive, it is how much people are willing to pay for it. You have to remember thst crypto currency is based on supply and demand (like any other commodity) and price would move depending on how much people are willing to pay for it. I just don't know the technical side of it.

IndeecV

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In our world, any value is not an objective concept, but a subjective one. That is, the value of the object is determined not only by its internal objective characteristics, but mainly by the agreement between people about its value. This arrangement has the appearance of the laws of supply and demand.
Art objects are a good example.
Now uniqueness is valued especially highly. Even a completely worthless premat, if it is unique, is of great value.
And Bitcoin first proposed the uniqueness property in the Internet space. In which it was possible to copy anything.

Kakmakr

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Other than Supply & Demand, people are also looking for something that are not controlled and manipulated by governments or some corporate entity. The world have seen what these governments and entities can do to the global economy and they are searching for alternative currencies that are not under their control.

This was the spark that caused the wild fire adoption in the early days of Bitcoin. Roll Eyes

When more people realize the evil behind these entities and these government, adoption will increase.

BestSSS

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Quote from: REF Crypto on July 29, 2018, 10:08:28 PM

If Bitcoins aren't tied to a conventional currency, how did they get so valuable?

The market consists not only of cryptocurrencies but of many other items that are of some value. If you say that bitcoin is not supported by real money, then where is the proof that any other cryptocurrency is provided with this money and costs exactly as much as there is on the SMS. Where is the proof that for example the world's leading companies and their shares are worth the price that they offer? like Apple or Microsoft? The essence of the market is not to provide something with real money but demand. If a stock or cryptocurrency is needed by buyers, it will cost more if there is no cheaper and not necessarily a reinforcement of assets with gold or real money. The market is driven by supply and demand.

Thomas-s

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I think that the price of bitcoin also depends on the production itself, because people who produce bitcoins lose not small money, and they do not have the benefit of selling it cheaper.

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