Topic: What makes Bitcoins valuable? - page 3. (Read 757 times)

The main factor is the use case, the limited supply without a doubt helps but it is not the main factor, if it was then coins which were created after it with an even smaller supply would have surpassed bitcoin if this was true, but they did not and this is because they have no use case.

Satoshi could have created bitcoin as a coin without limit and it will still have value, however Satoshi understood very well that a coin with a limited supply would grow in value faster as the demand for it will grow as well, a process which is similar to what we have seen happening with gold over the years.

^That is a part that BTC becomes valuable, the use case but the main factor could be the limited supply of BTCs, with a fixed total number that can ever exist, inherently creates scarcity in the market. This scarcity is a key factor driving the increasing value of Bitcoins over time and as demand for BTC continues to rise among investors big or small that looking to accumulate them, the fixed supply contributes to upward pressure on their price. This phenomenon is almost the same as the fundamental economic principle of supply and demand, further emphasizing the significance of BTC value in the digital asset landscape.

^That is a part that BTC becomes valuable, the use case but the main factor could be the limited supply of BTCs, with a fixed total number that can ever exist, inherently creates scarcity in the market. This scarcity is a key factor driving the increasing value of Bitcoins over time and as demand for BTC continues to rise among investors big or small that looking to accumulate them, the fixed supply contributes to upward pressure on their price. This phenomenon is almost the same as the fundamental economic principle of supply and demand, further emphasizing the significance of BTC value in the digital asset landscape.

The use case of Bitcoin makes it valuable, IMHO.  It makes the unbanked able to participate in the global economy which is very impossible before.  Having no bank account before Bitcoin was created restricted individuals to participate in global trades.  Bitcoin enables financial inclusion to those people who were denied by banks.  This simply means unbanked are allowed to flourish through local and global trades.

Scarcity (limited supply), centralization, and being anonymous cannot make the cryptocurrency valuable. For example, Monero fulfills these conditions. However, its value is far from Bitcoin.

For the currency to be of value, demand must increase the amount of supply that is generated and the demand curve continues to grow. If the demand curve continues to grow, the price of the currency will increase if the demand is constant or declining, which is what is happening in Bitcoin now.
We cannot develop the Bitcoin model to be for all cryptocurrencies, but we can say that there are a few cryptocurrencies that will be.

1. Bitcoin is scarce
Scarcity leads to value. Bitcoins are scarce. Bitcoins will always remain scarce because only 21 million will ever exist.

It would take a gargantuan effort to change this number. In fact, nobody knows if it can be done. So once 21 million Bitcoin have been mined, that’s it. The game is over.

There is no way to discover, like what recently happened in Uganda, a bunch of gold in the ground.

2. Bitcoin is decentralized
One of the reasons Bitcoin holds value, and should always hold value, is because there is no single government that can get involved and print more BTC or mess with it’s price.

Decentralization also means that anybody in any nation, except for China at this time, can purchase Bitcoin, utilize BTC, and store Bitcoin with specific, anonymous, keys.

3. Bitcoin has become accepted as a store of value
Most individuals believe gold is a store of value. When Warren Buffet says gold has intrinsic value, he means the asset itself is valuable.

Buffet doesn’t believe Bitcoin has intrinsic value. But it does because BTC investors, and the nation of El Salvador, has decided it does.

El Salvador made Bitcoin legal tender. Nations back up their native currency with gold, silver, or other precious metals. El Salvador backs up their currency with Bitcoin.

4. Bitcoin is anonymous
Nobody wants anyone looking into their finances. Your finances are your business. Bitcoin is anonymous, meaning although Coinbase might know who you are, they don’t know why you made the transaction.

Anonymity makes it valuable because at no time can a credit card company cut the amount of money they’re willing to lend you. Your bank account can’t decide to deny a transaction because they don’t like what you are purchasing.

that's are true but i think the biggest factor is because many people want to use, trade, and hold bitcoin. the growing number of people who wants btc make it's price rise. cryptocurrency community is already big and keep growing which means we can expect btc to become more liquid.

Bitcoin is valuable because of certain features.

For example, Bitcoin is censorship-resistant. You can spend your Bitcoin anywhere in the world and with anybody without fear that your transaction will be rejected, reversed, cancelled by an authority because of your political affiliations, nationality, race, and so on.

Another reason is that Bitcoin is immutable. That Bitcoin has value is because of people's trust, and one reason why people trust Bitcoin is that nobody can alter or change its recorded transactions.

Another reason is that Bitcoin is borderless. No conversions needed wherever you are in the world. This offers seamless transactions because jurisdiction isn't a factor.

Today BTC is becoming more stable then dollar

The intrinsic value comes from inputs to mine BTC. If you need to spend money for technical inputs to confirm transactions, mine blocks in order to get BTC, it would have its intrinsic value. The intrinsic value is hard to calculate because mining costs are different at different locations.

Bitcoin is a currency in which people invest with the aim of changing their financial position and earn profit from it. Whereas El Salvador has formally identified Bitcoin as their country's back-up currency that improves their economic status. Although El Salvador currently has a breakup system of everything by Bitcoin where they have created a Bitcoin City. In other countries of the world they break up their economic position with gold or other precious metals. But El Salvador is the only country where Bitcoin is used to break up their economic status. And by using Bitcoin they are enjoying all the benefits and leading the country towards economic development. In that case we can say Bitcoin is a store of value where people can invest their money and earn good profits. Bitcoin is a virtual currency held by people believing it to be a future asset.

So once 21 million Bitcoin have been mined, that’s it. The game is over.

-except for China at this time, can purchase Bitcoin, utilize BTC, and store Bitcoin with specific, anonymous, keys.

3. Bitcoin has become accepted as a store of value
Most individuals believe gold is a store of value. When Warren Buffet says gold has intrinsic value, he means the asset itself is valuable.

Buffet doesn’t believe Bitcoin has intrinsic value. But it does because BTC investors, and the nation of El Salvador, has decided it does.

El Salvador made Bitcoin legal tender. Nations back up their native currency with gold, silver, or other precious metals. El Salvador backs up their currency with Bitcoin.

Just how true is this?

Just a stroll to the charts and coinmarketcap would tell you, bitcoin has varied by 0.05% in the past hour and 0.99% in the past 24hours as at the time of this comment . This tells you just how unstable bitcoin is and it would continue to swing back and forth as it should be.

It’s a highly volatile market and you shouldn’t be expecting a stability in bitcoin price let alone, to compare it with dollar. Even the Tether USDT that is dollar pegged has got a 0.00% variance on it in the past hour and even 24hours so, it just doesn’t go.