Because it's good for you simple,
WHAT DO YOU EXPECT FROM AN ASSET?
Simply you want full control of that particular asset that it should be in your custody point no 1.
You need freedom of financial activities.
You need Valuation as always you expect that in hard times or for the next generation of savings.
You need a modern mode of exchange..
whatever you need BTC is giving it to you so that is the reason its valuable, point is anything became valuable when you need it and for now BTC is your primary need.
Topic: Why Bitcoin is valuable? (Read 1187 times)
In addition to this cost of mining Bitcoin makes it valuable. Once BTC is mined for a specific cost it is unlikely the miner is going to sell what they earned for less than what it took them to attain. This cost is dependent on the cost of electricity, the mining difficulty and block reward.
Once this baseline price has been reached, price is determined by supply/demand dynamics. Its utility makes it valuable - as a currency in the upcoming DeFi industry. Hence we have demand. And as you said it is scarce, capped at 21 million. Hence, limited supply.
This is how money works in general. However Bitcoin is different from fiat in that it is not controlled by banks.
Once this baseline price has been reached, price is determined by supply/demand dynamics. Its utility makes it valuable - as a currency in the upcoming DeFi industry. Hence we have demand. And as you said it is scarce, capped at 21 million. Hence, limited supply.
This is how money works in general. However Bitcoin is different from fiat in that it is not controlled by banks.
People already are in love with Bitcoin, I'm sure you are aware of many of them....
here on the forum. Pretty much all of the currently mined Bitcoin is bought and owned
by someone. Not everyone in the world owns or wants to own Bitcoin but its doing
very well with the current level of interest.
here on the forum. Pretty much all of the currently mined Bitcoin is bought and owned
by someone. Not everyone in the world owns or wants to own Bitcoin but its doing
very well with the current level of interest.
Because they can act as a store of value and a unit of exchange. Although its biggest problem is its status as a unit of exchange, as most businesses have yet to accept it as payment, it is very scarce
Let's bring it into the real world would you like to choose a professional medical doctor that treats and takes care of patient in the hospital or would like to choose someone that got know skill and has nothing offer or economic value?. Medical Doctor of course!
Therefore, this is to say value comes from problem solving ,you create value by solving people's problem. Bitcoin has solved the decades problem of old monetary system that is inflationary (money printing), centralized and non transparent system. While Bitcoin is deflationary , limited supply/Scare (only 21M Bitcoin can ever be in existence), decentralized and a transparent monetary system (all the transaction from the beginning are there to see). Therefore a (ll this problems put together makes which Bitcoin solved valuable
Therefore, this is to say value comes from problem solving ,you create value by solving people's problem. Bitcoin has solved the decades problem of old monetary system that is inflationary (money printing), centralized and non transparent system. While Bitcoin is deflationary , limited supply/Scare (only 21M Bitcoin can ever be in existence), decentralized and a transparent monetary system (all the transaction from the beginning are there to see). Therefore a (ll this problems put together makes which Bitcoin solved valuable
Isn't it also a bit personal? I mean it could be valuable to me, and not be valuable to you. In that case its basically "beauty is in the eye of the beholder" or whatever americans say. Thats the type of thing we are in right now where we may think that its good, but that doesn't change the fact that it may not as good as we imagine it would be for other people. I have a personal reason of hating banks that caused me to be so interested in bitcoin, but I can see others who are only interested in making a profit by investing into crypto not liking it so much when you look at the past few months. So it depends on what you want out of this in the end.
For example, several people have no money, but want to play a few games of mahjong, and then make an appointment for a card of poker to represent one dollar. Poker then generates a dollar value. The value it carries at the moment is the mutual promise of several people, and its function is to calculate the quantity.
In today's digital age, the immutable properties of the Bitcoin database accurately carry the mutual promises of Bitcoin holders, which can quickly calculate the quantity and transfer each other.
As a final note, Bitcoin is hard to come by, and if 21 million people buy one each, they will never be able to buy it again.
In today's digital age, the immutable properties of the Bitcoin database accurately carry the mutual promises of Bitcoin holders, which can quickly calculate the quantity and transfer each other.
As a final note, Bitcoin is hard to come by, and if 21 million people buy one each, they will never be able to buy it again.
Bitcoin had huge demands over a year,the demands of bitcoin had increased because of the new investors.Several investors was increased every day,So it’s essential one for the people to hold huge bitcoin for future.People who had huge money are advised to to inverse on bitcoin and good potential coin.Then they can easily double or triple the money in a short period of time.
... because people think it is. Scarcity has nothing to do with it and I don't think the scarcity argument holds up over the fire regardless. All it takes to mint more coins than everyone thinks is community consensus and if you are looking at a 100 year time horizon and competition between cryptocurrencies, that is not out of the question.
Scarcity is important, because it assures investors and dealers the currency is really decentralized, since the developer will never be able to create new coins besides the 21 million in order to execute market manipulation schemes, like dumping the currency for personal instantly gains.It's scarcity what also raises trust in bitcoin and its legitimacy. If it wasn't for this characteristic I don't believe bitcoin would reach to the adoption and price levels we have been seeing so far.
The value of Bitcoin comes from all that multitude of whales and investors who believe in bitcoin technology, knowing that transactions are so fast and necessary for our current lives, is something that should be enough for many, but some people like me like to be careful with bitcoin, that is, not spending it means that money can be multiplied in less than 5 years, which is quite obvious that it will rise in price and leave profits much better than any lottery.
The idea of bitcoin being finite is not the real reason why we care about the price of it. The real reason why we think it worths something is the fact that nobody controls it. USD or Euro or anything else could become less valuable due to inflation all because there are people at the top who make it so. But, bitcoin is not touched by anyone or controlled by anyone and that is why we care about it so much.
I would rather lose all my money in bitcoin, then keep it in dollar and have it slowly become less valuable. Any investment made in fiat would be racing towards inflation and hoped that it wouldn't be this low, and that's why there is crypto, it's the main reason why it was created.
This is what the people are counting on. There is no inflation with it, and yes there is a "little" inflation in guise of mining rewards but that is nothing compared to how much money we are talking about. And that means we are going to be pretty upset when we find out that fiat doesn't have that at all, billions do not still realize that.I would rather lose all my money in bitcoin, then keep it in dollar and have it slowly become less valuable. Any investment made in fiat would be racing towards inflation and hoped that it wouldn't be this low, and that's why there is crypto, it's the main reason why it was created.
You could literally print money to make dollar worth 1 cent euro, but they won't, yet they "can" and that is the scary part. If we are going with the fiat route then we are going to regret that forever because if you go back 10 years, 20-30-40-50 and you will realize that things only get more expensive and crypto is a way to protect that.
It's definitely valuable because people think it's valuable. To get rid of the flaws in the current money transaction method, we need a breakthrough that's Bitcoin. So people start to accept the new era of transactions and think it's the future. It's valuable because its importance is inevitable nowadays.
It will remain valuable for the simple reasons:- Store of value.
- Function as a payment method as well.
- Fully decentralized and can't be manipulated by all means.
This is from a technical point of view. In addition to the rest of its advantages of being accessible to everyone if we take into account the huge number of people around the world who are unable to provide banking services. Bitcoin requires only a phone connected to the Internet.
The most important thing is that it can be used completely anonymously without revealing the identity of the person using it. This facilitates its spread even in countries that prohibit its use.
... because people think it is. Scarcity has nothing to do with it and I don't think the scarcity argument holds up over the fire regardless. All it takes to mint more coins than everyone thinks is community consensus and if you are looking at a 100 year time horizon and competition between cryptocurrencies, that is not out of the question.
There is a definite supply of bitcoin. Bitcoin will no longer grow when the whole bitcoin mine is over. So there is no fear of inflation here where there is fear of money inflation in every country. So everyone is interested in Bitcoin and everyone is buying Bitcoin as a valuable asset like gold. So Bitcoin is gaining popularity day by day and its value is increasing. that's why bitcoin is valuable
The idea of bitcoin being finite is not the real reason why we care about the price of it. The real reason why we think it worths something is the fact that nobody controls it. USD or Euro or anything else could become less valuable due to inflation all because there are people at the top who make it so. But, bitcoin is not touched by anyone or controlled by anyone and that is why we care about it so much.I would rather lose all my money in bitcoin, then keep it in dollar and have it slowly become less valuable. Any investment made in fiat would be racing towards inflation and hoped that it wouldn't be this low, and that's why there is crypto, it's the main reason why it was created.
It's definitely valuable because people think it's valuable. To get rid of the flaws in the current money transaction method, we need a breakthrough that's Bitcoin. So people start to accept the new era of transactions and think it's the future. It's valuable because its importance is inevitable nowadays.
Regardless of the downward movements that bitcoin is showing at the moment, it is still the most valuable currency of all times. It is just a temporary phase and I am quite sure that bitcoin will bounce back to new heights soon.
I believe you are trying to build a story around Bitcoin, its evolution and development since you relate it to the manner and origin of money, but you failed to point out some facts about bitcoin. E.g it's the total supply of 21 million and its anti-inflationary nature give Bitcoin an intrinsic value that makes Bitcoin stand out among other assets and currencies.
Bitcoin is valuable simply because we put a value in it.Like any other fiat currencies,we also use bitcoin to buy goods and services as a form of money.The more people use money the more it becomes valuable.And because bitcoin has only 21million limited supplies,people wants to hold more. This indicate that there is more demand than supply,which results to increase in value..And lastly more people used it as an investment and became rich because of bitcoin.
In simple words, it is the demand for bitcoin which makes it valuable. The more the demand for bitcoin increases, the more people will buy it and since its demand is limited, the price of bitcoin will rise quickly.
However, if there is a lack of demand, people will not buy bitcoin and hence its price will not rise or increase. So it's the people who make it valuable and nothing else.
If you are starving and I have a basket of apples and you have 1000 bitcoins - what has more value?
I'm not getting your point. By the same analogy, your basket of apples is more valuable than a ton of gold, or a mountain of diamonds.
Consider this thought experiment: What is the value of your basket of apples in a seemingly endless apple orchard at harvest time?
There is a definite supply of bitcoin. Bitcoin will no longer grow when the whole bitcoin mine is over. So there is no fear of inflation here where there is fear of money inflation in every country. So everyone is interested in Bitcoin and everyone is buying Bitcoin as a valuable asset like gold. So Bitcoin is gaining popularity day by day and its value is increasing. that's why bitcoin is valuable
I think you mean devaluation not inflation.
Here is a thought experiment: If there was no published bitcoin price metric - what price would you trade your fiat for it?
If you are starving and I have a basket of apples and you have 1000 bitcoins - what has more value?
There is a definite supply of bitcoin. Bitcoin will no longer grow when the whole bitcoin mine is over. So there is no fear of inflation here where there is fear of money inflation in every country. So everyone is interested in Bitcoin and everyone is buying Bitcoin as a valuable asset like gold. So Bitcoin is gaining popularity day by day and its value is increasing. that's why bitcoin is valuable
Jump to: