Topic: What makes Bitcoins valuable? (Read 757 times)

No one has talked before about banks making a person richer, although in the case of large deposits you will earn interest in return. Does anyone think the same thing as me, when a bank goes bankrupt or an incident occurs and makes the bank stop operating the money we have will get compensation/refund? Of course bitcoin has a far superior value compared to the fiat/bank system, but I agree that currently banks are still quite needed and at least even if we think they are not, the general public still really need it.

Regarding security we can choose our own standards for storing bitcoins, for example, using a wallet that is highly recommended and I deliberately did not mention it because everyone already knows about it. The banking system is also very vulnerable to hacking and even though every day they try to improve the security system, talking about security behavior the only steps that need to be taken are caution and we can carry out these steps ourselves with the available systems.

Banks won't make you rich but only make your asset secure rather than keeping it by ourselves. At some point we still get benefits with banks. Bitcoin is also best in terms of security because no one can open your wallet as long as you keep the private key or phrase in a safe place where no one knows. Additionally, Bitcoin gives us huge ROI if we invested in it in the lowest swing point. Annually, you can possibly get 100% profit while if you're in the bank, you can only get 5% to 10% annually which is very small. With Bitcoin, you can get what you can get in banks. Be wise with your decision because we can't turn back time.

The advantages possessed by bitcoin are precisely because of the weaknesses possessed by the banking system when associated with fiat. The banking industry has a corrupt system and they suck people's blood with the regulations created, there are many weaknesses in the banking system so that many people are starting to realize that bitcoin is far more able to provide freedom in determining its financial direction. Hierarchically, bitcoin is strong for reasons of banking weakness, although there are other factors that strengthen bitcoin itself.

Bitcoin does not have an impact on inflation, but has the resilience to hold back when inflation takes place and there will always be a recovery moment every time it happens. Talking about the store of value, gold actually has the same perception as bitcoin, but trust in bitcoin is actually increasing and is marked by the many adoptions that are taking place. Community involvement can actually influence the supply and demand process, so bitcoin is by far one of the best investments.

You make an excellent point regarding how mining Bitcoin is becoming more and more complex, making it unaffordable for the typical individual. That isnt the whole tale, though. An innate mechanism to maintain the scarcity and value of Bitcoin is the rise in mining difficulty and equipment costs! Its intended effect is deflation.

People losing their keys or passing away and not being able to access their Bitcoin wallets? Tragic, indeed, but also one more factor in the coin's limited supply. This is not some apocalyptic fiction; this is how economics works: value is determined by scarcity. Understanding the fundamental mechanics that set Bitcoin apart from other asset classes is more important than simply keeping an eye on investors or mining businesses. For the lower classes, things will undoubtedly get harder, but thats the truth of every successful endeavor

Bitcoin for is valuable because it exceeded my expectations.

Comparing it to fiat is the easiest way to explain why it is so much valuable than any kind of currency we have in this world. A lot of problems we are experiencing in fiat since it was made. It is forever gonna be prone to inflation which isn't a good thing for everyone, while Bitcoin doesn't care about inflation to be honest, that's why I love hodling it unlike fiat.

Indeed, now is the digital era, so there are definitely a lot of people interested in adopting bitcoin, but that doesn't mean that investing in BTC isn't risky, because what I know is that most people dare to invest in gold because they see the potential for gold for the future and the risk is not too high. whereas investing in btc is very high risk, even though investing in btc has the potential to get large returns.

but I personally see that bitcoin and gold are very valuable assets and very difficult to separate.

This is just my speculation, most likely due to the Bitcoin mining factor which is getting more and more difficult, and the Bitcoin population is almost all over the world, even nearly 80% of Bitcoin miners have difficulty buying mining equipment which is increasingly expensive. not to mention the Bitcoin that is held by someone who has been abandoned by the owner, because he died without his family knowing about it, of course the Bitcoin will just be buried, and in the end the bitcoin is stored in his wallet, this is what I think the more years will be more and more Bitcoin is expensive in the eyes of investors and miners, not to mention that several mining companies in every country are so big that they are even competing to get so many Bitcoins and the demand is large enough to push Bitcoin to become bigger, of course this will make it difficult for the lower classes.

Indeed there is some influence for the price of Bitcoin and I do not consider it a value because regardless of the price of Bitcoin, in my eyes Bitcoin still has value. And I think the influence that you mentioned is the effect on the price of Bitcoin itself, because all of that involves Bitcoin holders which can trigger sudden panic. Even though not everyone can immediately panic when all these events occur, because as long as there are still many who like Bitcoin, the price will definitely recover after all these events are over.

I think that is also the reason for Satoshi to create bitcoin to partially replace banking. But the biggest problem bitcoin is having is that it is not considered a currency and it is considered an investment from day one. I will not lie, I am an investor in bitcoin and the purpose is for me to make a profit from it. And others are like me, so it will be difficult to turn bitcoins into currency or means of payment. Most people just like to accumulate bitcoin, sell high and buy low, very few people want to use it for daily spending. Honestly, that's the barrier that makes bitcoin a currency.

I think with the current failure on people relying on banks is also given bitcoin a massive edge over the centralised system and everyday people are now exposed to the fact that banks are a big fucks and the best way to go about your financial stability and situation is actually reliable on a system where everything is decentralised which paints the use of BTC in the picture.

I could imagine what happened in nation few months back when the CBN bank actually announced the creation and immediate use of the particulars new currency which was very little in circulation. And it was enforced on all the other financial banks to actually stop using the old note which  cause a nation wide problem because people were restricted on the usage of their own money in the banks because of the massive crowd present there to actually change their currency and  there also major restrictions on the amount of cash you could get off the bank a day which rather absurd if you ask me.

What makes bitcoin most valuable to me is what it does versus fiat currency.  As a financial advisor I've come to absolutely despise the banking industry (most particularly big banks like Chase/Bank of America/Wells Fargo etc).  I saw how corrupt they were first hand so when I found out about bitcoin and it's decentralized nature, I instantly become extremely intrigued. 

This is why I think we need to push harder for using bitcoin as a means of payment.

Some folks see this as a plus, while others mark it as a drawback of Bitcoin. Its decentralized nature clashes with the current governance systems, which tend to lean towards centralization. A significant chunk of government transactions still prefer being under the reins of specific entities for particular agendas. Being overly transparent might not align with their interests, so the decentralization actually ruffles the feathers of governmental authority.

Yet, transparency is a hit with the general public. The government's performance could be directly monitored, and the populace gets a factual grip on what's truly unfolding.

Bitcoin ushers in this decentralized concept that's a fan favorite, yet a government foe. It's a duality with both positive and negative ripples. Acknowledging that governments are more inclined to green-light systems not straying too far from centralization.

Your provided information is absolutely right. For this your provided Bitcoin being valuable i am agree with you. I also think Bitcoin is very secure and It's quantity is limited only 21m. And it is fully decentralized. And day by day Bitcoin accepting many store and hospital, air company. Even many country also accepting bitcoin. Like El Salvador is big example for it. Overall day by day it’s usability increasing there has no doubt. And Bitcoins transaction completing through Blockchain technology. We know blockchain technology is best and most secure technology in the world. So i think for this Bitcoin being valuable day by day.

Bitcoin is eventually a digital store of value because ;

1.Bitcoin is decentralized
Bitcoin is not concentrated on just an organization or company ,it doesn't necessarily need any rules to be guided with.

2.Bitcoin is secure
It is very safe buying and selling Bitcoin ,even for investments one's profit is guaranteed and sure .

3.Bitcoin has limited supply
Bitcoin in it's scarcity adds value to itself.

People who sees the potential of the bitcoin usually use those in effective way, being transparent, decentralized and secured makes the bitcoin more valuable also the demand of it peoples sees the Bitcoin as one of the good investment opportunity. 
But again there's a possible market manipulation due to large investor already makes their position but if you take a plan already what are your actions you can easily manage those volatility.

In addition to what OP has said;

As more people use Bitcoin and accept it as a form of payment, its value increases. The larger the network effect, the more valuable Bitcoin becomes. This network effect fosters confidence and further adoption, leading to increased liquidity and perceived value.

Similar to gold or other precious metals, Bitcoin can act as a hedge against inflation and economic uncertainties. Its limited supply and decentralized nature make it an attractive option for those seeking a more stable long-term investment as it enhances trust and perceived value of Bitcoin.

It's important to note that the value of Bitcoin is also influenced by market dynamics, investor sentiment, technological developments, and regulatory factors.

This is the most interesting point about the advantages of bitcoin from one of the other advantages because it already has a fixed amount and no one can print more. So that bitcoin will have value in the long term and in the short term and can also be the best asset ever.

Pseudo anonymity depends on how you use it and when it is centralized exchange engagement you are using then full anonymity is no longer the basis. Because it can still be tracked even if you don't know the reason for the transaction, but compared to existing systems it can be said that the anonymity of bitcoin is much better.

How So? the word "MORE STABLE" does bitcoin come to stagnant at exact price for at least an  hour?  because Bitcoin does not lol.
if you can give at least some reason then maybe we will accept your facts here.
number 2 in what sense? not sure what are you trying to impose here but there is no comparison for these 2.

Bitcoin stems value from scarcity and the decentralized Blockchain ensures security and trust in a borderless digital currency world.

The actual value comes from the demand factors which will make it worth something and it will further be dependent on what's the usage so as long as until people feel it's beneficial for them and keep on using it the value will be derived from it otherwise if we say about future anything is possible.But for miners if we say about future rewards then fees will be enough to cover the cost depending on high prices at that time although we can have more possible solutions for it.

If miners suffer there is also an impact on the price of Bitcoin. But after a long bearish trend normally bullish movement started. In that continuation we can expect to see a new Bitcoin bull run as well as a new all time high very soon. Times are very positive for Bitcoin hoarders and we will see that bullish movement in Bitcoin again in the next year. It may take a little longer than expected but it is certain that Bitcoin will get the new ATH once again.

It's not really a matter of usefulness as a measure whether bitcoin can reach a million, bitcoin is a blue chip crypto so it don't matter whether if other crypto have more use case because many people will be seeking bitcoin compared to other crypto and given the scarce nature of bitcoin I am sure that as the adoption of bitcoin continues to spread globally, we would see more people that would want to have a piece of bitcoin to their name, we always think that because it's been more than a decade now that bitcoin has reached it's peak in terms of their reach in the population but no because there are still people out there that still don't even know about bitcoin yet.

yeah i mean if it can't make it past $69,000 and stay above that then how is it ever going to get to $1million? it needs to become more useful. more use case. otherwise i don't see how it would ever be worth $1million unless inflation made it artificially worth that.

if inflation is what makes bitcoin be worth more then it's not really worth more.

This pressure is unavoidable and makes the Bitcoin price potentially depressed, especially since miners are pressured by the high operational costs of mining production and tend to sell to cover the losses they experienced before.

Now, many people are waiting to see whether BTC's New ATH will be born and whether it will surpass the previous US$69,000 towards the end of 2024 and 2025 after the correction 2 days ago because some people the price is already very low and time for a reversal.

gold investment is also profitable, where even though the supply is not limited, the trust and need for gold is always growing. however, if you take into account gold, it will only save the value of the currency from inflation, but of course, because of the trust factor, it makes it safe to hold. different things from bitcoin which until now certainly made us rich when investing at its inception, and only took 14 years to be able to retire, the growing adoption and the few people who believe in it, it opens up opportunities to increase the price

maybe no one "wants" to go below $20k but that doesn't mean it can't happen. the market decides if that happens. the only control miners have is turning on or off the power button on their rigs...

there are many blockchains.. many have PRICES but when it comes to an underlying value. people dont know the difference of price vs value or what one blockchain offers that the other does not.

the truth is there is a underling cost to PoW and this is the base wholesale that backs the underlying value that sets the bottom no one wants to go below.. this economic value is atleast $20k right now

there are also emotional values(not the same as economic value) where values put excess amount ontop of the economic value and start to be part of the speculative market price

there is a big reason why people prefer PoW because it has a real world underlying cost. where as PoS coins dont. PoS coins are 99% speculative and have alot of chance of dropping to zero.
PoW would need a significant cut in hashpower cost to drop its value and cause even a chance of going below a certain 'bottom' value amount

PoS coins like ethereum is 99% speculative with mostly emotional values but very little underlying cost bases to back it up. and support it. most of the time ethereum speculates based on arbitraging bitcoin trades, not its own ecosystem

bitcoin has its own ecosystem aswell as its own underlying cost. yes there are other PoW coins but you can see with their lack of hashrate cost means their market prices speculate from a lower standing point. and if they speculate too much they crash just as fast back to their base value amounts once the emotional drama subsides

Bitcoin has revolutionized as an innovative technology, gold, on the other hand, has existed for decades, but when comparing them you can see the potential of both to be extremely profitable as an investment, it is true that they have their own qualities that make people interested in them, but I believe that bitcoin has had a greater impact despite being new, and the latter is exactly what has impressed and makes it have a certain advantage against gold, the fact that in such a short time this asset has reached having such a high demand and value in the market may be the main reason why it is being desired by many, the other reason is obvious, and it is the purpose for which it was created, many seek to be able to manipulate their money without the need to have restrictions from banking entities on how and when to use what belongs to them, bitcoin guarantees them that freedom.

Gold indeed boasts an intrinsic value of remarkable purity. It emerges as an investment archetype that approaches near-perfection when it finds its place within an individual's portfolio. Yet, the exalted worth of gold is somewhat overshadowed by its decidedly non-portable physical form, which, regrettably, could potentially imperil its possessor. The physical security layer, in its current construct, fails to match the robustness of its technological counterpart. This disjuncture implies that the specter of pilferage looms over the gold holdings of common citizens, not only jeopardizing their material wealth but also endangering their very lives.

In stark contrast, Bitcoin presents itself as a digital asset, cloaked in a security matrix of considerable intricacy. This novel asset model boasts an accessibility that transcends geographical confines, save for the encumbrances posed by governmental regulations. One can carry the quantum of their BTC holdings with ease, encapsulated within a smartphone or enshrined in a portable physical wallet. Yet, when it comes to toting tangible gold, one cannot help but entertain concerns about safety in the public domain. While digital manifestations of gold have arisen, they often entail the involvement of third-party intermediaries, undermining the pure investment intent.

In essence, both Bitcoin and gold are adorned with their distinct virtues, each standing tall within its own realm of excellence.

so far, it makes valuable for most because of its high volatility, and that makes a very good asset to hold for profit purposes. this is why there are so many incoming traders on this market because they find it very profitable if they know what they are doing.  and with the features of low transaction fee, borderless aspect of txs, makes it a very good candidate in cross-border payments, without worrying high fees charged by other wire transfer companies.

What everyone says is very valuable and I agree with what you say. For me, the most important features that make Bitcoin valuable are that the transactions are public but the user identity is always private, so anonymity is at the center. Another one is that there is no need for third parties. All transactions on the Bitcoin blockchain are intermediated between individuals in other words. Thanks to these features, you can carry out transactions comfortably without revealing your identity and you don't need any intermediary institution or person to carry out these transactions. Thus you minimize your risk of being defrauded.

The values that Bitcoin offers us are very important and will radically change our relationship with money. The fact that Bitcoin is a cryptocurrency that is not controlled by a central authority and thus cannot be manipulated, its ease of use and easy exchangeability make it an attractive alternative.

Yes decentralization of BTC makes it different from other asset and no other payment method/asset could he competitive of BTC. some other benefits of decentralization is no one controlling BTC price and we are totally free from Government manipulation.

Another big benefits which i think added value to btc is global access with ease and buying/selling (trading) will not charge extra fee and not limited to specific regions and we can send money to other countries cheaply with fast speed. These all are the benefits of decentralization. I. shorts decentralization is main key points i think more valuable then any asset.

The biggest reason why Bitcoin will always remain valuable is its decentralized structure. Bitcoin laid the foundations for a new understanding and has been moving forward ever since. We've been lucky to witness this progress.

The biggest problem with today's economies is that they print money at will, and this free money comes back as inflation. This is not the case with Bitcoin. That's one of the things that makes Bitcoin valuable.

Yes, Bitcoin IS valuable due to its applications, but to imply that its worth is restricted to a small number of uses shows a narrow viewpoint. Did it ever occur to you that the present need to buy Bitcoin with fiat money is just a temporary stage in its development?

Now, there is a glaring misunderstanding about the bank account issue! Have you ever heard of peer-to-peer platforms or Bitcoin ATMs? Bitcoin can be purchased free from the restrictions of a conventional bank account. Consider the countless decentralized possibilities as you awaken.

And for the love of blockchain, Bitcoin wasn't created to obliterate fiat currency or the banking industry entirely! It is a tool to restore the people's power and free them from the controlling monetary policies. Bitcoin has surpassed conventional financial constraints! Past events are over. Take advantage of the financial revolution now. Be without regret. From everything, grow!

Bitcoin itself the valuable coin,because of his decentralized behavior of the bitcoin.Most of the people who had huge knowledge in the cryptocurrency will choose the bitcoin for their investment.Because they all know the true value of the bitcoin.When the price of bitcoin had reached the all time new high,then he had a possibility of getting more money as the profit itself from the bitcoin.Bitcoin help the people now like the asset to store your valuable money for the long run and give you more benefit at the time of need.

Ale88, your statement is far from the truth. The advantage of bitcoin is being your own bank, but it doesn't necessarily provide anonymity as you claimed. If you really want to be anonymous in the bitcoin network, you must first learn how to hide your ip. This can be achieved by not running your node on the clean net. Tor can do a good job to hide your ip. For transaction purposes, you try not to re use your addresses.
The coinbase example is off the discussion because coinbase is a CEX. To be able to trade their you must have already completed KYC with them.

I agree with you, the use case that has made bitcoin valuable, but is what you say really true of what bitcoin has to offer? Bitcoin is an asset, and to get it you need fiat and a bank account to buy it. It's not distributed for free, how can you get bitcoins if you don't have a bank account? Bitcoin use cases can include cross-border transactions, making us our own banks, inflation-resistant store of value, and more...Bitcoin doesn't stop you from banking and fiat money, it just helps reduce our dependence.

That is not necessarily true: every single bitcoin transaction is readable on the blockchain so even if you don't know who is making that transaction you can follow the bitcoins path anyway. And it's possible to track down bitcoins even after they have been mixed using some mixing service. If you want to be 100% anonymous then bitcoin is not the best choice. At the end almost everything that goes through internet leaves a trace.

Which supply is limited and demand is high must be valuable. BTC has a total supply of 21 million while the number of institutional investors in addition to ordinary investors is increasing as a result of which BTC will gradually increase in value. On the other hand, as the world's population grows, there is a demand for everyone who wants to store BTC in their holdings. OP points out a number of reasons for BTC's rise in value, but what I believe is awareness. BTC will be most valuable if people are made well aware of the benefits and possibilities of BTC.

Use cases of a crypto are crucial. While the limited supply is the cherry on top of cryptocurrency value, it is not the only one.

To illustrate, use oranges. If there is only one orange and no one knows how to eat it, it will sit. Other coins with smaller supplies resemble oranges almost perfectly, but without the instruction book. Despite being juicier, they may not be more popular.

The limited Bitcoin supply is a fantastic idea, and Satoshi's creation is amazing. How much less valuable would it be if it were unending, like the stars in the sky or sand grains on a beach? Gold has been dazzling and priceless for millennia, but arent there sparkling rocks everywhere? The development of everything is intriguing.

Indeed, it is not difficult to create an asset with a limited supply, but to create an asset with as many use cases as bitcoin is not easy. And that's why we have many altcoins that either have a limited supply or can use burning to reduce the supply, but so far, none offer such useful use cases as bitcoin. So I also think the main factor is the use case but the supply is equally important. Because if you combine these two factors together, it will add perfection to bitcoin, thereby pushing the bitcoin value to skyrocket.

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.

You guys have said what you believe makes Bitcoin valuable but what truly makes it valuable was the concept used to create Bitcoin which is the exact thing that builds the perception and confidence that we see investors have in Bitcoin because it is a naive decision to some institutional organization for people to trust, invest or accumulate Bitcoin as a hedge against inflation or economic instability.

^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 given an opportunity to flourish through local and global trades.

Each individual bears an emotional rationale when confronted with the prospect of purchasing Bitcoin. This entity, conspicuously devoid of physical form, derives its perceived value from the wellspring of emotion and psychology. The undulating swells and troughs of the BTC price rally exert a distinct allure upon those inclined to wager their prowess in the realms of trading or investment.

A multitude of individuals elect to lay claim to Bitcoin, each driven by their unique motives, thereby sustaining its intrinsic value and market desirability. While its feasibility as an ideal currency might be contested, Bitcoin assumes an alternate role as an instrument, be it an investment or a digital payment alternative, standing in tandem with conventional FIAT currency.

Although cryptocurrencies like Monero satisfy requirements like privacy and scarcity, they haven't attained the same level of widespread adoption as Bitcoin. Is the increased value of Bitcoin due to its acceptance? Or is it a somewhat puzzling phenomenon with additional forces at play? Perhaps Monero's inability to match Bitcoin's value is a sign of its inherent flaws. The relationship between these variables, though, is still a little hazy, imprecise, and puzzling, which makes it a little harder to fully understand what you said

All what you have mentioned is correct, but truthfully, I think that the major reason bitcoin has value is because we humans have given it value. If it was completely ignored by every human, it will be valueless even with the many benefits it can offer. Bitcoin has value because humans paid attention to it and gave it value. So as more people know about bitcoins, the value will increase because more people will try to get it and in trying to get it, it will become more scarce and the value will increase.

The first reason itself is sufficient to prove why Bitcoins are valuable. I mean there are already fixed number of Bitcoins in the market and no more Bitcoins can be created or destroyed. Hence this makes Bitcoins supply fixed and limited. Due to the fixed amount of supply Bitcoins are becoming valuable day by day. The increase in demand to accumulate Bitcoins among the people is helping Bitcoins to gain more price. The supply and demand theory also justifies how valuable Bitcoins are.

The fact that all financial markets and in all countries affect the
price of Bitcoin has made it very difficult to think and analyze.
 I am so tired.

Demand is always the determining factor in the value of an asset but why is demand for bitcoin higher than for any other coin? It is because of the factors that the OP mentioned, and to be in high demand, bitcoin needs to have features and advantages that are superior to the rest of the cryptocurrencies. But I think the main factor that sets bitcoin apart is its decentralization. No 2nd coin is more perfect than bitcoin in terms of decentralization.

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.

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.

In the nutshell, we could say that the reason why bitcoin is so valuable is because of people's interest in it, great technologies can be built but without people being interested in such a tech, the value will remain on the group for as long as it takes, humans are the ones who give value to things or give give things the value they think its worth.
Looking at the advantages of bitcoin, that is, its importance to humanity, some of us still consider bitcoin highly undervalued even as its worth tens of thousands of dollars, I personally think that based on the importance of bitcoin to humanity and our financial sector, Bitcoin should have a market capitalization equal or bigger than the foreign exchange market, but then, I understand that Rome was not built in a day, Bitcoin will arrive their some day, as i believe that even the foreign exchange market did not become that big in a couple of years, Bitcoin is still just a couple of years old .

Well, I do not know, but I think I disagree, Bitcoin is still as volatile as I think it can be, but then, if its stable, its better it be stable than nose diving, or what do you think?

totally agree with this part in green

not quite accurate about this part in red

value vs premium is a range..
value itself is at the bottom it sits below the market and is not to be confused with price. value is the lowest most efficient mining cost on the planet. this sets the 'bottom' no one wants to sell below.. the speculation is then the volatile PRICE on spot markets that can range from value(bottom) to premium(ATH)
the market PRICE speculation is difficult to calculate because different people have their own different costs so willing to buy upto or sell down to certain amounts... however you can calculate the bottom value on the planet of the most efficient cost to know the bottom below market support
dont confuse value vs price

The government of El Salvador seems to have bought bitcoin at a high, possibly much higher than current prices, so to say that they are benefiting and their economy is growing on bitcoin is inaccurate. I am not saying they failed because adoption will take longer, but they are not very successful in accepting bitcoin and bitcoin is not the only official currency there, El Salvadorans still use USD in their daily lives.

Many people say that bitcoin is a store of value but I still doubt it, because bitcoin's volatility is so great that it is not suitable as a store of value. Assets like gold or real estate are more stable, so they can be said to be suitable for storing value. As for bitcoin, it is more suitable as an investment, IMO.

Op the 21 million BTC will never be mined because they can only be mined when there is no demand and supply. If there is buyers and sellers Miners are always be there to mine the coins for the people so the only thing that can stop bitcoin transaction is when nobody buys and nobody sells there every thing will stop but lolz that can never happened.

Op how? Can you put more highlight on this point? You said bitcoin is decentralized which makes it out of authority control but you are saying that "except China". How? You mean China can control bitcoin? Op bitcoin is value because of it decentralized nature which restricted people to control it and you as an individual control your coins.

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.

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.

Bitcoin's sideways movement over the past several weeks has made many people impatient and they consider bitcoin to be a more stable coin. I bet this guy is in the same situation, he is annoyed that the volatility of bitcoin is not so great and doesn't know what to do in this case. But luckily, bitcoin moved and at one point it crossed $30k today, I think bitcoin was better than USD in his mind  . Bitcoin investing is like a psychological game, those who know how to be patient and wait will often get better rewards.

that's a valid point. i'd also add that the only thing that really gives bitcoin any value is the people that use it. if something better came along and yes many projects have and haven't displaced bitcoin yet but if that did happen then bitcoin becoming "#2" would be a big blow to it.

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.

There are several factors that contribute to the value of Bitcoin. First, since there is a limited supply of Bitcoin, this scarcity creates a sense of exclusivity and increase demand. Secondly, Bitcoin operates on a entire network that not controlled by any particular organization, which is of interest to people as an alternative to the traditional business. Mainly it has its block chain which provides a robust and transparent system of transaction records. Additionally it can be easily transferred and accessed by anyone who using the internet. One of the best about this is that compared to other assets, here you can use your thinking to get a lot of benefit.

if bitcoin doesn't go to zero, maybe the inflating us dollar would cause that to happen but still I'd say your statement is not necessarily 100% guaranteed to happen. maybe 90%. but there's that chance that it never happens. people shouldn't just automatically assume they should go get a loan and dump all of it into btc hoping it goes past that ATH. and then sit there for years waiting while they're paying 20% interest to the bank...

It is essentially a store of value because if you'll look at its lifetime chart you'd find that it increases in value steadily and exponentially too. Which is a common trope amongst these types of investments. Furthermore, essentially stores of value don't have to be "stable" as back in the days there's no definitive value for gold and silver anyway, we just supposed them for being valuable even if there were no technical applications for these precious metals other than the fact that they look pretty. And with bitcoin having a lot of applications this early in the game it's safe to say that it fits the bill quite perfectly regardless if it fluctuates in value or not. I'd argue that the very reason why it is a great asset to invest in short-term or long-term is its volatile nature even, as it gives way for large pumps to happen which you wouldn't see in any other type of asset in the market.

Its features or principles, coupled with the fact that it requires hard work to earn contribute greatly to its value. People greatly value things that are natural, durable, attractive, uncommon, unique, genuine, hard to create, useful, etc.
Bitcoin has inbuilt characteristics of nature with rights that are natural to humans & living things which any sensible human would value in a world rapidly developing with things that are artificial and contrary to the natural rights.

Talking about the value of Bitcoin, I prefer to answer with 1 answer which is what makes Bitcoin valuable is its CREATOR. Imagine if Satoshi wasn't anonymous and he appeared in a public place then Bitcoin wouldn't be as valuable as it is now. The reason is obvious of course, that with Satoshi's anonymity, the world government cannot know who and where Satoshi is because if Satoshi had appeared from the beginning, he would have been controlled, he would have been arrested and prosecuted because he has given financial freedom to everyone in the world. This is what we hoped from the start, if you know how dilapidated the fiat financial system is then Bitcoin is the solution.

Believe it or not, this uniqueness has encouraged everyone in the world to dare to take up Bitcoin as an alternative store of value controlled under a single right to themselves. 

Little do I know about bitcoin.

1. Bitcoin was the first

Bitcoin is the father of the blockchain. A revolutionary idea for decentralized ownership. The price is purely controlled by the community. Cannot be intervened by the state

2. Bitcoin Pure Decentralized

Bitcoin is not affiliated with any country and any company. The bitcoin network runs on the support of its miners

3. Bitcoin is the Antithesis of Fiat

Bitcoin appears with big missions, one of which is fighting fiat hegemony

That is owned by bitcoin and not owned by crypto other than bitcoin. Besides bitcoin, coins are made by companies. Disappearing satoshi is the right step for bitcoin to become independent and not depend on anyone

You sure have a weird way of putting some of these points.
Not entirely correct. There are loads of altcoins with capped supply like bitcoin, some even have less max supply than bitcoin but they do not have any value.
In other words scarcity itself does not "lead to value", the utility is the only reason why something has value. Scarcity decides the level of that value.

Why are you excluding China?!

Bitcoin has intrinsic value because it offers a valuable and unique utility as the only working decentralized money in existence. Not because someone else or some country says it does.

What does Coinbase, a centralized exchange and a custodial wallet have to do anything with bitcoin's anonymity?!! I hope you know that people shouldn't even be using custodial wallets to store their coins...

Bitcoin is a store of value, I also have opposing thoughts about this. When it comes to bitcoin's finite supply and ability to rise in price over time, it can also be thought of as a store of value. Because when your asset is bitcoin, your asset value will not be lost or eroded by inflation like fiat.
But bitcoin is highly volatile, and its future is uncertain, meaning there is still a risk to investing in bitcoin. So it's not a store of value, and you're right, gold is more of a store of value than bitcoin.

Great compilation OP, but still it needs some touches, like you said BTC has been accepted as a store of value, and still you used the example of El-Salvador, As far as i know, both are two different things, because making BTC a legal tender in that country, does not mean they are using it to store there assets value in it, instead, they have no other choice to make it happen, Like you should read the story behind it Source

Bitcoin is definitely anonymous but still it is a developing technology, once a wallet is attached to your public profile, it will become impossible for you to remain anonymous or do anonymous transactions from that wallet address. And still, you take the meaning of anonymity wrong, because if Coinbase do know you then the base of remaining anonymous is vanished from there, You know what anonymous means?

And in your second point, Chinese are still making transactions in crypto industry via there two nation system, in which they have allowed there second nation Hong Kong to allow trading and all types of activities in Crypto Sphere. Even, banks are forcing other platforms to legalize it completely.

I don't think this is true because as far as I know, there are a lot of people around me who find it difficult to use bitcoin because they have difficulty using the internet and smartphones. Gold is a tangible asset that can be easily held and exchanged because of its ubiquity, so I don't think bitcoin will outperform gold in this regard. I myself find it easier to use and own gold than bitcoin.
It is not too difficult to create an asset with a limited supply, if the government wants to, it is very easy to create a scarce asset. Scarcity is an element that will only come into play if the demand for it is high, without the need, the scarcity becomes completely useless.

After all the bitcoin have been mined...it isn't game over for bitcoin. Miners will keep on carrying out bitcoin transaction,so that transaction fee will be a reward to them. The only way that it would be a game over for bitcoin,is if all the countries place a ban on bitcoin.

Yes, it is the rate at which bitcoin price started moving up from 2009 till date made people to know that bitcoin is a store of value and not just a digital currency. Another reason why bitcoin is a store of value is because it is inflation resistance.
Coinbase is a centralized platform and exchange. Whatever makes one to use this platform,he has gone against be nature of bitcoin which is decentralization and that person can be tracked down by the government through KYC. Meaning he has no privacy and no
longer anonymous.

Adding on top of what OP has already said, for me if compared to the nearest asset known to us (gold) is bitcoin is more accessible to more users , which means its potential to grow is infinite as opposed to gold which is  available to a few and at times needs so much paperwork to obtain...so basically speaking it has the demand and easy to own.

Another reason I see Bitcoin being valuable is we have moved into a digital age and people are more attracted to having bitcoin as opposed to physical assets or fiat and to  some extent gives you better security and control.

Agree this should be the ace in the hand, and with demand  in the equation Bitcoin is destined to be the most valuable  asset known to man

To me i think bitcoin is not scarce unlike the other physical assets like gold, but you can say bitcoin has a limited supply, this is why you will not experience multiple indiscriminate printing of currency as it has been in fiat with bitcoin, because the more they keep printing the more the economy manipulations increases leading to inflation and other financial economy inappropriations.


People want and preferred bitcoin as a form of currency and asset because of its dual nature and not been centralized or attached to a particular country's regulations which may alter some people from using it due to their policies and regulations of possessing some assets.

1. Undoubtedly, a limited amount makes it valuable, because this asset will not be enough for everyone.
2. It can be called a little differently - the freedom to dispose of your assets without outside influence. And also, clearly established rules that can't be changed unilaterally, which is a sin for any government.
3. The intrinsic value is invested by the people themselves, by their faith in the asset and by buying it.
4. Amendment. Pseudo-anonymity and the connection between the wallet and a specific person has not yet been established.

I believe that what makes bitcoin unique and valuable is not just one parameter, but the combination of these parameters, each of which adds a part to the value of btc. In general, the list provided above is incomplete.

^ If you buy BTC at $69 and you sell your coins at $100k by 2026, that's still storing wealth more than its price.


Crypto companies like coinbase can sell their data to the government which they also can use to trace coin holders. They probably have bought some data already especially the closed exchanges like FTX or Bittrex. The government sure will be interested in those who has lots of coins and whom they could next its transactions.

The price of BTC is driven by the market but what makes Bitcoin valuable is its demand.

bitcoins values(emotions values of features and benefits and desires) are most of what the OP listed

bitcoin VALUE(economic number bottom far below premium at the top) is based on the periodic lowest acquisition cost on the planet which is where the most efficient mining cost over a period sets its value. this then becomes the store of value amount after being well tested for a period.

if you can buy bitcoin whilst its correcting near the value bottom, and not the premium top of a period you are storing more of your weal in value

EG 2021 value:$10k premium $69k
a. if you bought bitcoin at $60k you were only storing a 6th of your wealth in bitcoin
b. if you bought bitcoin at $30k you were only storing a 3rd of your wealth in bitcoin

then in 2022 when value grew to $15k those purchases last year meant more of your wealth got to be stored to resist losses should a market correction occur becasue the new raised bottom store of value went up to protect more wealth from risk
a. quarter of wealth
b. half of wealth

as time goes on the bottoms get tested and a new raised bottom is found setting the store of value at a higher number meaning storing more wealth from risk

eventually the store of value minimum/bottom will be above 2021's ATH of $69k

bitcoin is indeed very valuable because bitcoin supply is limited.

but I don't understand when you say that bitcoin is a store of value, because what I know is that bitcoin is a digital currency and many people buy btc to make it an asset.
but investing in bitcoin is of course very risky because btc has a fluctuating nature, so in my opinion btc is not suitable as a store of value.
for gold, I agree that it is used as a store of value asset.

Among the list, I most agree here because Bitcoin is a decentralized currency which means no one can control it even the government or any institutions, that's how Bitcoin is being unique.
And it is also attractive to investors because of being decentralized, which can lead to no manipulation will happen and Bitcoin will be more transparent, just like when you are using it in your daily life as a payment method.

The game can be over anytime. When all 21M BTC mined by miners, if minters continue to turn their ASICs or future more advanced mining equipments on and confirm transactions, the game will not be over. Never be over if there are miners to confirm transactions and keep the network lively operating.

Anyone, any entity can buy it for their own interests. You can not restrict anyone, any entity to buy it.

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.

The anonymity will be different if you use your coins in different ways. Even if you use CoinJoin transactions or mixer services, you will have to know using your inputs and outputs before and after the mixing process properly.

It is better you speculate the price from bitcoin price history and what is going on, for you not to buy at the wrong time which can make you wait for years again before the price that you bought it is reached and increase more to all-time-high. What I am saying is that bitcoin is a store of value in long term but not in short term investment.

Which Coinbase? Coinbase.com is a custodial wallet and they also have an exchange. Any transaction sent to your Coinbase account is well known to Coinbase which can let anyone like the government or third party to know you.

Bitcoin transaction is semi anonymous or pseudonymous if you use noncustodial wallet with Tor or use a full client for privacy.

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.

BTC transactions are in digital code. This fact makes it valuable to anybody who loves the idea of remaining anonymous when they make transactions.

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