Topic: If Bitcoins aren't tied to a conventional currency how did they get so valuable? - page 2. (Read 1058 times)
August 02, 2018, 07:14:34 AM
I think bitcoin is not necessarily associated with any currency, bitcoin is always bitcoin, anyway, the bitcoin value will be very high in the next time
August 02, 2018, 06:21:50 AM
Bitcoin and altcoin are not a substitute for traditional money. If bitcoin is not linked to a conventional currency, the value of bitcoin is unlikely to be sustainable.
August 02, 2018, 05:59:56 AM
I think if bitcoin is not associated with a common currency the value of bitcoin will continue to decrease, the impact of bitcoin will not be too big for the economy, bitcoin is still not comparable to traditional money.
August 02, 2018, 05:57:10 AM
it will be a little difficult, so the price of BTC is still pegged or refers to conventional currency, but if all aspects or transactions in this world have fully used BTC, then the BTC will have its own value and may not be affected by conventional money, but I think now btc still has high value and is still very valuable if we have it, hopefully the market is getting better so that the bcc has a high price again and hopefully in the future btc can be used as a full transaction tool without having to exchange the conventional money at least this will make life we are a little simpler
August 02, 2018, 05:41:27 AM
If Bitcoin is associated with a common currency, I think at that time the value of bitcoin would not be as volatile as it is today, and it is likely that the bitcoin value will increase sharply because only to 21 million Bitcoins
August 02, 2018, 05:25:43 AM
If Bitcoins aren't tied to a conventional currency, how did they get so valuable?
Good question! When the bitcoin network was first created in 2009, bitcoins were barely worth anything. Bitcoin lore holds that the very first real-world bitcoin transaction occurred in May 2010, when one early bitcoin user paid another user 10,000 bitcoins for two pizzas. At the time, bitcoins were trading for less than a penny each.Geez! I hope the user who paid 10,000 Bitcoins for the pizza did well out of Bitcoin (no doubt they did), otherwise they would be in the Bitcoin regret forum.
August 02, 2018, 05:13:45 AM
If Bitcoins aren't tied to a conventional currency, how did they get so valuable?
This market is ruled by ideal model of demand and supply. People get interested in the new technology and are excited about generating some money on their own.They have demand and partially create their own supply. Others simply want to buy some coins, so they form demand, but the supply should be provided by others. What is essential for the increasing of bitcoin's price is limited supply. There cannot be more that 21 million coins, so when new people will join the market, they'll have to divide the btc that's already circulating. Plus, bitcoins are also generated in limited amounts each 4 years or so, which means that even though some day there will be more of them, people who want them now have to pay more. August 02, 2018, 04:57:45 AM
If Bitcoins aren't tied to a conventional currency, how did they get so valuable?
If bitcoin is combined with Chinese yuan, what is the value of Bitcoin?
August 02, 2018, 04:36:58 AM
The current value of bitcoin is still considered as virtual and not long. When bitcoin is linked to another common currency, the value and future of the bitcoin will increase to a new level.
August 02, 2018, 04:19:25 AM
What currency do you usually prefer? US dollar or another high-value currency? If bitcoin is associated with a high-value currency, the value of Bitcoin may be high.
August 02, 2018, 03:26:52 AM
Bitcoin has not been accepted by some countries. If bitcoin is not associated with a normal currency, the stability of bitcoin is not guaranteed, the value of bitcoin is unstable.
August 02, 2018, 03:14:14 AM
Lol who told you that Bitcoin is not tied to conventional currency? Man it is. The main purpose Satoshi even made it was for it to be used as a way for making peer-to-peer transaction, but since it has a value that fluctuates up and down based on what is being invested on it, it continues to be going any direction based on what we invest, the price we are ready to buy and sell. So it is tied to conventional currency.
The value of BTC is determined by the market. If you are willing to buy BTC for $8200 and the other person in the market rather want to buy BTC for $8100 then both of you has to wait til someone is wiling to sell for the price you set. However the market place will set and average to which the basis for what the price would be just as how CMC shows the price is.
You’ve made the perfect explanation of this so no need for further explanation. And like you said it is fluctuating based on the rate of demand and supply, so that means that it is relying on conventional currency to gain its value, cause if we don’t invest our money (the real currency we are using) in it, then the value wouldn’t increase, and if it has increased already it will then start to decrease due to the rate of demand has decreased.
The value of BTC is determined by the market. If you are willing to buy BTC for $8200 and the other person in the market rather want to buy BTC for $8100 then both of you has to wait til someone is wiling to sell for the price you set. However the market place will set and average to which the basis for what the price would be just as how CMC shows the price is.
July 31, 2018, 07:09:56 AM
Everything is based on users and investors which are "creating" the price of bitcoin, let's show this on example, you have something material, it has its own price but in some way this is only a thing made from something, the same is with coins but they are just in internet not in ours hands.
July 31, 2018, 06:53:04 AM
I think its value and the hype comes from the economic drive that is being created by the investors like us. What else could be the reason for that? Do you really think that there is any other way for the crypto to gain its value? Its just the real money that gets flooded into it time to time basis and over the time it can be condensed market and hyped prices for the bitcoin. For bitcoin the most easy way to get the value is its popularity and people just trying it out with thousands of dollars as an investment. Thats the possible explanation for this.
July 31, 2018, 06:47:04 AM
Each of these booms—and, for that matter, most bubbles throughout history—has been driven by the same basic publicity-price feedback loop. As an Internet writer, I've seen this process first hand. During times when the price is rising, there's a lot of traffic to be had writing about bitcoin, so reporters like me write articles (like this one!) about it. The articles cause more people to pay attention to the currency, and some of those people decide to buy. That pushes the price up even more, triggering more media coverage and more public interest.
This is very true because it is what drives most of the hype about new things. Then when so much interest is on a specific thing, everyone and their auntie (well not quite with bitcoin--yet) wants to buy it. So then it gets more and more expensive.
That's also the issue in the other direction, when people realize that speculation is just... speculation. That the numbers aren't supported by the facts, and the prices are much too high. Then they all run for cover, sell it off, and protect themselves. The recovery stage takes time, but it will go back up again.
July 31, 2018, 06:41:58 AM
The growth of its price is parallel to the growth of those interested and buying bitcoins. The more popular is bitcoin, the more it grows in price.
July 31, 2018, 04:19:39 AM
Actually it did for now because people are deciding on the market price for crypto or bitcoin basing on its demand for it. As the demand for crypto goes high then so does its market price and it is even tied up to centralized currency like dollars. As you can see that the value of bitcoin is always being tied up with dollars or any local currencies.
July 31, 2018, 04:05:49 AM
If Bitcoins aren't tied to a conventional currency, how did they get so valuable?
Everything in this world has a perceived value. Bitcoin is so valuable because the people like you are me accept that it has this much value. The same concept applies to the currencies. The value of anything is greatly affected by the demand and supply forces. When Bitcoin was launched, its value was very less but when its demand started increasing, the supply being limited, its value started rising. July 31, 2018, 03:12:58 AM
Even if Bitcoin is not tied to a conventional currency lot of people believe that the digital currency has many potentials the government doesn't understand what is the intention behind this digital currency creation they think that this is a scam the reality behind this decentralized digital currency was introduced to advance the potential of transaction in the digital goods .The value of Bitcoin is determined by the market as modern technology improved new stuffs developed, the blockchain can increase the pace and can be used in business.
Think of bitcoin as a pass-through of every transaction it depends entirely on the elements to form. However, it does not belong to any organization so it is not affiliated or dependent on any other. It simply represents electronic money in general as a bridge to the market. July 31, 2018, 02:41:50 AM
If Bitcoins aren't tied to a conventional currency, how did they get so valuable?
In many countries there are centralized online exchangers with the help of which you can buy or sell bitcoin. There is also a decentralized exchange - localbitcoins , I like it more.
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