Topic: What makes Bitcoin valuable? - page 20. (Read 2956 times)
bitcoin is coin no 1 in cryptocurrency. According to my own understanding, I think bitcoin is valuable because many people are investing and Bitcoin is too valuable because Bitcoin has a bright and good future that can be the talk of many people in the world and can change people's lives for the better.
Everyone in the crypto space has had people tell them that Bitcoin is worthless or that it doesnt have any true value.
Of course, thats infuriating to hear, but for investors new to the space, its sometimes hard to craft a good answer.
So heres a little cheat sheet for any newbies out there who get this question or accusation:
1. Bitcoin is safe. It cant be hacked because its decentralized.
2. Bitcoin eliminates layers of transaction fees.
3. Bitcoin is fast (especially after the lightning upgrade).
4. Bitcoin provides more privacy than normal transactions.
5. Bitcoin hedges against stupidity from central banks and governments.
6. Bitcoin cant be counterfeited.
7. Bitcoin isnt tied to other asset classes and is a hedge against other investments.
In short, Bitcoin solves massive problems with the financial and political world, and that is its value.
And because its the most tested and has first mover advantage, it has been established as a store of value, much like digital gold.
-
@charteroakpublic
- a Telegram channel with leaks from premium sources like Palm Beach Confidential
I think bitcoin is valuable in the sense that government from any country may have hard time in tracing and adding of taxes in every transactions made. Also, there is a cap set of the total bitcoins which limits how much currency can devalue through inflation. It acts like an equity investment where the market value has wild swings in value and even a market cap. Of course, thats infuriating to hear, but for investors new to the space, its sometimes hard to craft a good answer.
So heres a little cheat sheet for any newbies out there who get this question or accusation:
1. Bitcoin is safe. It cant be hacked because its decentralized.
2. Bitcoin eliminates layers of transaction fees.
3. Bitcoin is fast (especially after the lightning upgrade).
4. Bitcoin provides more privacy than normal transactions.
5. Bitcoin hedges against stupidity from central banks and governments.
6. Bitcoin cant be counterfeited.
7. Bitcoin isnt tied to other asset classes and is a hedge against other investments.
In short, Bitcoin solves massive problems with the financial and political world, and that is its value.
And because its the most tested and has first mover advantage, it has been established as a store of value, much like digital gold.
-
@charteroakpublic
- a Telegram channel with leaks from premium sources like Palm Beach Confidential
Bitcoin is seen as valuable due to it being decentralized. In my opinion, since it is non-taxed in some countries and away from the government, the demand for bitcoin increases thus increasing the value of bitcoin. Compared to physical money, it is easier to invest with bitcoin. However, the downside of bitcoin is there have been numerous scams with regards to bitcoin.
Its a very good question my dear . What make bitcoins valuable is its converting price . I guarantee bitcoin can make our position now a days higher. 
Bitcoins becomes valuable because of its good effect to economy, It delivers financial stability, opportunity for unemployed individual and rapid transaction of money, It is also decentralized innovation which empowers everyone to be free from taxes. And potentially good source of income..
In my opinion, what makes Bitcoin so popular is because it is new and a new technology. Nobody has ever encountered such as this so people may tend to hype on it.
So which makes valuable bitcoin a limited number and more people are hunting it, bitcoin is the first digital currency created by the now popular satoshi nakatomo and the world's talk...
In the economic field, there is something of value if examining the following two factors: scarcity and usefulness. Scarcity simply means something is limited. In the case of bitcoin, cryptocurrency has a set of top 21 million bitcoins.
Many analysts note that this set top makes bitcoin more desirable than other assets, even gold. That's because unlike gold, there's nothing to worry about with a digital Gold Rush. A treasure of bitcoin will never be "discovered," causing crypto prices to fall with the supply flow.
"There are millions of times more gold potential than has actually been extracted," said Tom Lee, head of research at Fundstrat Global Advisors. Lee is head of equity strategy at J.P. Morgan before establishing Fundstrates in 2014.
Ben Yu, a blockade expert living in San Francisco, said that technological advances also make gold easier to mine.
"Today we are mining gold at a rate four times what we did 100 years ago," Yu said.
So if bitcoin has scarcity, what about its usefulness?
Many believe that the use of cryptocurrency lies in its potential to be a more efficient commodity than we already have. Bitcoin proponents love it for a number of reasons.
First, bitcoin is decentralized, meaning that no government, bank or one person has control over it; Can not be overthrown by corruption. It is also trivially divided, meaning you can buy small items like donuts with as easy as you can buy a house or even a mansion. And finally, the code in it is open source, meaning it is available to anyone to view, research, and even modify. This means bitcoin continues to grow and improve.
None of these uses are intrinsic. And that's the bitcoin skeptic point that is often made. Gold, for example, is thought to have intrinsic value because of its applications in industries such as dentistry and electronics. Some even argue that the dollar bill has an intrinsic value, because it can be used as firewood or for writing.
But when you solve one of these claims, it becomes clear that gold and paper money also have no intrinsic value.
According to the World Gold Council, by 2016, only 15 percent of the gold is used in industry. The majority go towards making jewelry and gold bars and coins, items that have value especially because they are valuable trustworthy.
With banknotes, the Federal Reserve says it costs about 16 cents to make a $ 100 bill.
So the rest of the hundred dollars, $ 99.84, comes from the trust of the people in it.
It's hard to see the digital currency has value because you can not hold it in your hand like you can buy a dollar or gold.
As a solution, Lee said to think of bitcoin as a digital business.
"If you ask a baby boomer, 'Can you justify the value of anything that is a digital business?' they may not accept that Facebook, Google, Netflix, Amazon, Apple, this is the largest company in the S & P 500 and especially digital businesses built almost purely on digital trust, "Lee said.
"Anyone who considers digital gold is not a store value that points to the fact that most businesses today are built around digital trust, including the financial system."
Assess Cryptocurrency
It's clear that some people believe that bitcoin has value. And if it has value, it's hard not to wonder how much bitcoin it can be worth.
There are two main theories used to calculate the potential value of one bitcoin.
The first theorizes that bitcoin, which some consider it to be a better asset than gold, can replace some of gold or gold entirely. If replacing gold entirely, one bitcoin could be worth $ 357,000. That is calculated by taking all the gold value ever mined in the world, which is about $ 7.5 trillion, and dividing the total of 21 million bitcoin ever.
Lee told CNBC that it is more realistic to assume bitcoin will replace 5 percent of gold in five years, making one coin worth $ 25,000.
Lee's other theories are based on Metcalfe's law, which says that the value of a network is proportional to the number of users squared on the network.
For example, one phone is useless because you can not contact others with it. But its value increases exponentially when other people get the phone.
Studies have shown that Metcalfe's law applies to Facebook that uses data for 10 years. This also applies to Tencent, China's largest social media company.
Fundstrates view users in bitcoin networks and find that the square of this value accounts for 94 percent of the variation in bitcoin prices since 2014.
Many people think that bitcoin is a bubble, and it's predicted on the concept that bitcoin has no value. But there is reason to believe that it is not true.
By definition, bitcoins are rare. And cryptocurrency may have the advantage as the best way to store and exchange wealth.
Many analysts note that this set top makes bitcoin more desirable than other assets, even gold. That's because unlike gold, there's nothing to worry about with a digital Gold Rush. A treasure of bitcoin will never be "discovered," causing crypto prices to fall with the supply flow.
"There are millions of times more gold potential than has actually been extracted," said Tom Lee, head of research at Fundstrat Global Advisors. Lee is head of equity strategy at J.P. Morgan before establishing Fundstrates in 2014.
Ben Yu, a blockade expert living in San Francisco, said that technological advances also make gold easier to mine.
"Today we are mining gold at a rate four times what we did 100 years ago," Yu said.
So if bitcoin has scarcity, what about its usefulness?
Many believe that the use of cryptocurrency lies in its potential to be a more efficient commodity than we already have. Bitcoin proponents love it for a number of reasons.
First, bitcoin is decentralized, meaning that no government, bank or one person has control over it; Can not be overthrown by corruption. It is also trivially divided, meaning you can buy small items like donuts with as easy as you can buy a house or even a mansion. And finally, the code in it is open source, meaning it is available to anyone to view, research, and even modify. This means bitcoin continues to grow and improve.
None of these uses are intrinsic. And that's the bitcoin skeptic point that is often made. Gold, for example, is thought to have intrinsic value because of its applications in industries such as dentistry and electronics. Some even argue that the dollar bill has an intrinsic value, because it can be used as firewood or for writing.
But when you solve one of these claims, it becomes clear that gold and paper money also have no intrinsic value.
According to the World Gold Council, by 2016, only 15 percent of the gold is used in industry. The majority go towards making jewelry and gold bars and coins, items that have value especially because they are valuable trustworthy.
With banknotes, the Federal Reserve says it costs about 16 cents to make a $ 100 bill.
So the rest of the hundred dollars, $ 99.84, comes from the trust of the people in it.
It's hard to see the digital currency has value because you can not hold it in your hand like you can buy a dollar or gold.
As a solution, Lee said to think of bitcoin as a digital business.
"If you ask a baby boomer, 'Can you justify the value of anything that is a digital business?' they may not accept that Facebook, Google, Netflix, Amazon, Apple, this is the largest company in the S & P 500 and especially digital businesses built almost purely on digital trust, "Lee said.
"Anyone who considers digital gold is not a store value that points to the fact that most businesses today are built around digital trust, including the financial system."
Assess Cryptocurrency
It's clear that some people believe that bitcoin has value. And if it has value, it's hard not to wonder how much bitcoin it can be worth.
There are two main theories used to calculate the potential value of one bitcoin.
The first theorizes that bitcoin, which some consider it to be a better asset than gold, can replace some of gold or gold entirely. If replacing gold entirely, one bitcoin could be worth $ 357,000. That is calculated by taking all the gold value ever mined in the world, which is about $ 7.5 trillion, and dividing the total of 21 million bitcoin ever.
Lee told CNBC that it is more realistic to assume bitcoin will replace 5 percent of gold in five years, making one coin worth $ 25,000.
Lee's other theories are based on Metcalfe's law, which says that the value of a network is proportional to the number of users squared on the network.
For example, one phone is useless because you can not contact others with it. But its value increases exponentially when other people get the phone.
Studies have shown that Metcalfe's law applies to Facebook that uses data for 10 years. This also applies to Tencent, China's largest social media company.
Fundstrates view users in bitcoin networks and find that the square of this value accounts for 94 percent of the variation in bitcoin prices since 2014.
Many people think that bitcoin is a bubble, and it's predicted on the concept that bitcoin has no value. But there is reason to believe that it is not true.
By definition, bitcoins are rare. And cryptocurrency may have the advantage as the best way to store and exchange wealth.
I agree to the fact that btc is the most popular crypto in todays world and also the volatality it has got makes it even more popular.Its treated as an asset in the long run and many have earned some good profits when it reached highs few months back.Even now ,many are still buying as its correction phase is over and they want to reap profits in the long run.BTC provides good returns to short and long term investors if taken positions at the nearest points.
There are a few things which make bit coin valuable, but it’s actual value is lower than its current value. There’s definitely a bubble going on. There are some reasons below
1. Artificial scarcity
2. Mystique
3. Natural audiences
4. Irrational core audiences
5. Declining fungibility
6. Increasing transaction fees
1. Artificial scarcity
2. Mystique
3. Natural audiences
4. Irrational core audiences
5. Declining fungibility
6. Increasing transaction fees
Everyone in the crypto space has had people tell them that Bitcoin is worthless or that it doesnt have any true value.
Of course, thats infuriating to hear, but for investors new to the space, its sometimes hard to craft a good answer.
So heres a little cheat sheet for any newbies out there who get this question or accusation:
1. Bitcoin is safe. It cant be hacked because its decentralized.
2. Bitcoin eliminates layers of transaction fees.
3. Bitcoin is fast (especially after the lightning upgrade).
4. Bitcoin provides more privacy than normal transactions.
5. Bitcoin hedges against stupidity from central banks and governments.
6. Bitcoin cant be counterfeited.
7. Bitcoin isnt tied to other asset classes and is a hedge against other investments.
In short, Bitcoin solves massive problems with the financial and political world, and that is its value.
And because its the most tested and has first mover advantage, it has been established as a store of value, much like digital gold.
-
@charteroakpublic
- a Telegram channel with leaks from premium sources like Palm Beach Confidential
Defintinely, the bitcoin itself, that is the bitcoin make valuable for many people here in bitcoin society. Of course, that is very interesting topic that many people can give a lot of opinion for this and because of that, it can also give us an opportunity to make and earn some moneh here in bitcoin. For me, as simple as that, the only thing that can bitcoin can serve as a valuable to people is how it works in people's life. Of course, thats infuriating to hear, but for investors new to the space, its sometimes hard to craft a good answer.
So heres a little cheat sheet for any newbies out there who get this question or accusation:
1. Bitcoin is safe. It cant be hacked because its decentralized.
2. Bitcoin eliminates layers of transaction fees.
3. Bitcoin is fast (especially after the lightning upgrade).
4. Bitcoin provides more privacy than normal transactions.
5. Bitcoin hedges against stupidity from central banks and governments.
6. Bitcoin cant be counterfeited.
7. Bitcoin isnt tied to other asset classes and is a hedge against other investments.
In short, Bitcoin solves massive problems with the financial and political world, and that is its value.
And because its the most tested and has first mover advantage, it has been established as a store of value, much like digital gold.
-
@charteroakpublic
- a Telegram channel with leaks from premium sources like Palm Beach Confidential
limited supply and increasing demand
bitcoin is too much valuable due to good reputation. It gain enormous trust from its users, and these people spread the word about the life changing benefits that they get from this investment. Aside from being top value wise, bitcoin also is the longest digital coin in the market.
Bitcoin is valuable because of Fiat money. People buy Bitcoin to resell it at a higher value to convert into Fiat money lol.. That is the only reason Bitcoin has value. Take away that and Bitcoin would become worthless...
Bitcoin become more valuable because of the community who supports and buy bitcoin and hold . If people keep on buying bitcoin price will increase , more and more bitcoin they bought it will create volume that makes the price increase . most of the time bitcoin fly during the last quarter of the year which people are all rich and investing into bitcoin so i suggest people to buy now probably by holiday season price will fly again.
Many people who have their bitcoin so low circulation when new investors come to invest in bitcoin will create more demand that causes more prices. With the availability of bitcoin makes the most expensive currency because only 21 million and low when compared with other currencies. 
Increase in demand, and more people learning about it every day in different parts of the world
I firmly believe that only two of the most important factors affecting Bitcoin, the Internet and market demand, the Internet determines the existence of bitcoin is meaningful, and the market demand is to determine the current price of Bitcoin and the future price forecast.
There are many thing makes Bitcoin valuable. The main thing which make it more valuable is its Blockchain technology and decentralised nature. Because of these two thing Bitcoin reach the top of crypto world. There is no central authority or person can control Bitcoin so you are your own boss these things attract more people to use this. Another thing which make Bitcoin valuable is its money transaction facility. Which is most secure and uninterrupted. Bitcoin's low transaction cost makes it more valuable for the online seller. And its growing price make it valuable for the investors. 
In my opinion bitcoin makes valuable when people accept the bitcoin. When people used it for payment transaction, and also if it is demand in the market.
Bitcoin is valuable not because it is a great invention, but people sees this as a way and great potential for them to earn money, which indeed is correct, all of us has been given the chance to earn here, and we are thankful as well that our government is always in our back supporting us by not banning crypto in our country. 
In my opinion bitcoin makes valuable when people accept the bitcoin. When people used it for payment transaction, and also if it is demand in the market.
In fact, bitcoins get their value, like everything else: people want them. Like any other currency, bitcoin follows the basic rules of supply and demand.
Bitcoin, like gold has value because people believe it has value. If people value something, it is “valuable” to them. Often we attribute value to things simple because we can do something with it that cannot be done otherwise.
- Bitcoin is different than fiat (Government money) in that there is nobody forcing you to use it (to pay your taxes, etc), or preventing you from using it (as
in capital controls, etc).
- Bitcoin is neutral: it is indifferent to where you were born, where you live, who you are, what you are buying, etc.
Bitcoin has technical properties which make it much more flexible, programmable and reliable in certain situations, so it has properties which might make
it more valuable to someone who needs those.
- Most of the value today is speculation because people believe it could replace many sections of our economy currently controlled by banks.
- Bitcoin is different than fiat (Government money) in that there is nobody forcing you to use it (to pay your taxes, etc), or preventing you from using it (as
in capital controls, etc).
- Bitcoin is neutral: it is indifferent to where you were born, where you live, who you are, what you are buying, etc.
Bitcoin has technical properties which make it much more flexible, programmable and reliable in certain situations, so it has properties which might make
it more valuable to someone who needs those.
- Most of the value today is speculation because people believe it could replace many sections of our economy currently controlled by banks.
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