Topic: Really, why bitcoin has this value? - page 6. (Read 744 times)

The basis of all worthless goods, then comes a community that values ​​the goods, just like bitcoin the initial value of course is zero, but as the community grows and the adoption of bitcoin to various types of services and transactions makes bitcoin continue to be valuable, this is what makes the concept of decentralization very suitable for today.

From my point of view, there are 2 people its speculated if you know the deep side and if you have a piece of really deep knowledge in marketing and finance from stock and all people can apply that in bitcoin yes someone may say bitcoin in stock are different but for me it a bit of the same both are investments and a gamble. It's still different as bitcoin become a thing in the 20th century-plus stock are way before the 2000s.

For me there is a 30% chance, it can be speculated if you are up to date on news and again know everything in stocks applying the knowledge can really help you speculate the value in bitcoin. knowing stocks before bitcoin can really be an advantage.

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source: https://www.investopedia.com/articles/forex/121815/bitcoins-price-history.asp
Maybe people say it's natural because it's really natural if you look at the past value of bitcoin there is kinda the algorithm but likely the difference is that bitcoin become in demand.
 

Don't worry, you do not have to explain the value of bitcoin for too long. Eventually people will realize it has value because we gave it value and it is valuable because we said so and that is exactly how every single thing has a value. It is supply and demand, why does my chair has value? Why did the guy who made it charged me 50 bucks for it? Because I was willing to pay for it, and if not me then someone else would, and if nobody did, then he would be bankrupted, it is as simple as a chair.

You could do it with diamonds, it literally has ZERO value, compressed coal, nothing else, and we ended up with basically nothing at all, it is actually that simple. All in all, people who do not get the value of bitcoin right now, will get it in the future, we did, and we are not some super smart genius level people neither, at least I am not, so everyone else will as well.

Bitcoin itself is speculative and whoever says that it's not speculated then he probably never invested to bitcoin or still confused about the volatility it has. No one claims that bitcoin isn't speculative.
It's actually a fact that bitcoin is a speculative market and we're all living to speculations day after day. Its worth and value is based on the demand and as well as the news that surrounds it which is giving impact to its price.

Um....P2P transactions of what, exactly, if it isn't money?  The two books I've read on bitcoin and its creation make it clear that bitcoin was intended to be a form of money, and money has to have some purchasing power.  Therefore, if a brand new, groundbreaking form of money is created, it basically has to have its value (purchasing power) expressed in terms of what goods and services are priced in--and that's fiat currency, of course.  Long story short, bitcoin has always had a fiat price attached to it and that was inevitable.

OP, bitcoin is traded on exchanges and the driving forces of its price are supply and demand, it's that simple.  That's why we see these crazy price fluctuations, and it's why there's rampant speculation (especially at times like these, when the price has gone up a lot).

And let me ask you a question: If you were an average Joe on the street, working a 9-5 job and collecting a paycheck, do you think you'd have any interest whatsoever in bitcoin if its price remained stable?  That's a rhetorical question, and I think most of us know the answer.  Yes, bitcoin can function as a currency, but the vast majority of people are happy with using their debit cards, smartphones, or cash to pay for things, and they're not demanding an alternative to fiat currency.

I understand your confusion, it is usually hard to understand and a lot of people do question the price at times. Just take it that it relies on supply and demand. Exchanges are the ones who are setting the price of bitcoin, and this is usually determined by how much traders are ready to buy and sell the cryptocurrency, and it relies on the rate of supply in the market and the rate of demand which is the norm for everything; when there is a high demand and the supply can’t match, then you will see the price of that asset increasing in price to be able to match the level of demand.

Lastly, there are people who don’t like how volatile the market can be, and that has stopped them from making use of it. But that shouldn’t stop you, as long as you know what to do and have studied the market, this will even favor you.

Its original idea isn't going to ever happen unless the whole world adopts it. That's our bet. That's why you should hold it; because, based on the current adoption rate and the scenario where the whole world uses it as a global reserve currency, its market cap is going to blow up.

Who says such thing?  

Honestly I could not get your point.
When bitcoin was trading around $6k and $30k, what makes you to assume that it was performing well?

Basically you need to remember the limited supply of bitcoin and its increasing demand. If you assume that bitcoin is staying at some price levels for some time then it is not only doing well but it keeps attracting new investors and adapters then you need to remember it may get bumped at any time due to its limited supply.

Not all the times, bitcoin is getting its natural price value but it also gets into bubble and then it will burst to make it a naturally valued.

Currencies don't really change in value by themselves. They change with respect to each other. When everybody wanted USD to carry on the world trade, USD held value AND power. Still does and this is something that the Chinese want to change.

Bitcoin too is a currency but it doesn't belong to any government or country. It belongs to everyone. When everyone wants to use it to trade, speculate, transact or use as a form of collateral for lending/ borrowing, it ends up becoming valuable. OPs question is something that the Bitcoin community should continue to ask itself as well as contribute to.

Apart from the people who actually believe in Bitcoin's value, this is often a rhetoric question asked by the corporate/ PoS coins community who just assume that their "smart-contract platform" should have value because it "does something". They pull their hair out because whenever Bitcoin rises, most of these platforms initially go down in value. Thats a wrong comparison and it is advisable not to fall for it.

What do you mean with "perform very well"? That many people are using bitcoins and there is an active market for them, or that the there is a lot of upside trading potential? There is no fixed value for bitcoins, it is not an asset that will reach it's true intrinsic value and is not going to rise or fall anymore. So saying bitcoins should stay at 6k or 30k seems wrong to me. All currencies tend to move in price if they are traded freely. I think that the value from bitcoins comes from its scarcity, we know that there is no unlimited amount of bitcoins out there. We are going to get less and less new bitcoins which makes the old bitcoins more valuable. That is why there is a long term upwards trend for bitcoins. To be honest we could ask the same questions about gold, why is gold so expensive right now? The price doesn't seem natural, but as long as people have a lot of free money they can pay what they want for the things they like. The same goes for bitcoins. Also we shouldn't forget that analysts said a bitcoin price above 100,000 USD is possible for 2022.

I would not say #1 and let me explain. On any asset you have to take into account the price relative to fiat and other things as well. One of these is the volatility. Bitcoin is extremely volatile up to the point of doubling in a week and the like. Some investors would argue that inflation is rarely 100% in a week, so bitcoin as a protection may not be effective in short periods of time and may not be the best for everyone.

Because people find it useful and profitable. Humans are known to exploit just about anything regardless of the consequences or whatever negative outcome may result from their actions. That is, unless they are the ones at the recieving end. Not saying that everyone is like so, but just emphasizing how almost everyone is like this. Just look around you, all the things that people do and ignore that bleeds this world and almost anything within it dry. And for what? Greed. So unless greed is controlled, expect no change how things are going. Bitcoin isn't exempted.

     Well, it is what it is. No matter how much we are against the idea of bitcoin being used and seen as it is by the majority nowadays, there's too little to nothing we can do about it. Because something that people are used to is very difficult or even impossible to change. Also, if we think about the returns people are getting and are witnessing only sparks more greed. Let's face it, bitcoin is several times better than any other chiuces out there as a store of value and with the increasing inflation all over the world, there's just mo stopping the small and the huge holders.

A case could be made for bitcoin currently being the #1 inflation protected asset, in the world.

Gold as an inflation protected asset, is more of a boomer trend. Gold can't be exchanged for other assets as conveniently or easily as cryptocurrencies. Gold can't be stored, transported or secured as easily as crypto. BTC may have displaced precious metals as the reigning king of inflation protection.

In this era of inflation concern. Bitcoin's rising value could represent financial institutions, hedge funds, banks and whales around the world voting with their wallets that bitcoin is the best place to store wealth to protect it from rising inflation. It might require that high institutional volume and liquidity to offset bitcoin's historical 4 year boom and bust cycles.

For me it was expected bitcoin was going to keep rising. Pay attention to the signs our society is showing right now. Governments don't know what to do to save the local economies, fiat currencies are breaking, banks keep oppressing average citizens and people want an alternative to preserve their financial life healthy. Bitcoin looks a good option, and then we have a chain of adopters which reaches to all spheres: individuals, businesses and even countries.

So you might ask why bitcoin and not an altcoin then. And I think the answer would be it's a matter of reputation and notability bitcoin has conquered.

The price is not only about how it's performing. The price grows because of bitcoin scarcity and demand. As long as people/companies/countries will buy bitcoin as investment, the price is bound to rise. Also as long as mining is a commercial business and since the mining difficulty is rising, it's more expensive to obtain bitcoin than weeks/months ago, hence the miners will sell more expensive too.

But you do have a point, however: a speculation "component" of the price is (always) there. So I would not be surprised if the price will fall at some point under the current levels.

Well, it's because Bitcoin isn't solely a currency. It's also considered an asset and could function as one due to the natural limited supply that it currently has. It's speculated yes, but it's because people see value in it as a currency (and an asset) for the future. Its capability of being decentralized, away from the influence of inflation, etc, are all factors that investors and speculators use to judge whether they're worthwhile investments. And speculators attract their fellow kind, I mean who wouldn't go for something that could make profit right?

Awww, again. It has value because there is a community of people that has decided so, a network worldwide that enables exchanging it, an underlying system with the right incentives and the right technology...  Now, ask yourself, why does a 100 USD bill have value? Because people trust it and because there is a community (USA) that accepts it as legal tender.

Why the change in price respective to other fiat? Offer and demand, there is no more to it. More people accept bitcoin, funds want to have it, countries accept it... less supply,... No need for a Elliptic Equation for this.

Let me try to explain with an example; do you agree the price of gold around $1800 per ounce? Is it natural or just speculative? I believe it is both natural (due to demand) and speculative (as only trading decide the price and not the mining/production cost).

Similarly bitcoin prices are decided by speculators and traders based on expected demand and it becomes "natural" over the time along with real time demand.

In short, expected demand helps people to speculate about future prices and then "hype" helps to realize those prices to make "natural" or actual. So, bitcoin has its value today due to both speculation and demand.

Well, you probably will be shocked if it had crossed $200,000 today after the halving but I actually prefer the price movements to be gentle and sustainable.
To be honest, I think it's worth above what it's currently worth because it's a unique technology that alots copy cats are based on.   And always have it in your mind that most/all of the copy cats are substandard version of Bitcoin. The original will always have higher quality until the minds behind it no longer develop it (or have been compromised/weakened) . That would require a replacement with people that share thesame original ideology and principles...this's part of reasons I stick with Bitcoin for now.  I haven't yet seen any decentralized thing in this space that can serve people in very difficult times without compromising on the good principles