Topic: Why Does Bitcoin Have Value? - page 4. (Read 2851 times)

I was actually interested on that aspect on demand. It is like getting people to be interested on something that is not tangible in the physical world and then it already has value. I am wondering if there are similar events in the world history comparable or similar to the bitcoin phenomenon that started in the 2000s. The closest that I can think of is the Tulip Mania bubble that happened in the 1630s where the Tulip flower suddenly became valuable and there was very high demand. Sceptics even called Bitcoin "Tulip Mania 2"*.

* - https://theconversation.com/tulip-mania-the-classic-story-of-a-dutch-financial-bubble-is-mostly-wrong-91413

Bitcoin has a value due to the characteristics it has namely scarcity, usability, and maybe transferability. Scarcity because bitcoin undergo supply and demand from its users. Usability because we know that it somehow serves as a form of money. It can be used to invest, trade or any related way of earning. Lastly, transferability for it can be converted into any local currency of a person. People would not be still at this community and believe in cryptocurrency if bitcoin doesn't hold any value.

Actually as a bitcoin user it is one of the frequently asked questions, which you get all the time, important even among people who constantly use bitcoin and like it.

It is also an introspective question, that has not happened to you! anyway, sometime as in this case you must have read it, listened to it, it is a magical question, every time it happens it is like feeding the bitcoin's ego, the question itself is affirmative, that is to say , you no longer have doubts about the existence of bitcoin, perhaps the people who ask, may not have the slightest idea of ​​how it works, for example, knowing a little or nothing about it in the OP, but they are interested in knowing more.

It does not matter if you are a critic of bitcoin, if you are a person who follows bitcoin technically, if you are a bitcoiner or if you simply like bitcoin, over time you learn, as many have said, trust, when so many people agree over the years and more neophytes than experts keep coming, its value rises.

I agree with the Trust part and I would add the relative small adoption it has too. People trust that BTC won't disappear or go to $0 overnight, therefore some use it as a SoV.

One could add into account the "branding", the Bitcoin name itself, but I guess this is part of adoption.

Personally, I've always had bitcoins to USE, I'm not a big time hodler (well maybe lately I'm kind of hoarding a bit more than previously), but my main purpose when using bitcoin is useability. I have friends in different parts of the world I can quickly make business with if I need to, or send money to / receive money from, always through bitcoin. It amazes me how banks haven't realized the need for a simple "2 click" solution to send money anywhere in the world with reasonable fees. (No, western union is NOT a good alternative). I think for this reason bitcoin will always have a use case, at least for me.

Exactly. The mere fact that Bitcoin is usable, explains why it's considered to be extremely valuable among everyday people. Besides that, Bitcoin is the most decentralized cryptocurrency in the world. No other cryptocurrency compares to Bitcoin in terms of security/reliability. As long as Bitcoin stays this way, it'll continue to be a valuable asset that can be used as a store of value. While naysayers often say that Bitcoin is "made out of thin air", we all know that's not the case. Miners continuously spend real-world resources (mostly energy) in order to "mint" new Bitcoins. With a reduction in block reward every 4 years, it's expected that Bitcoin will become more valuable in terms of USD.

Nonetheless, anyone can create a cryptocurrency. But if that cryptocurrency doesn't provide real use cases for the mainstream world, it'll be worthless. I've seen many cryptocurrencies that went to $0 in price because they were unable to provide usability to everyday people. What makes a crypto valuable is its usability, ecosystem of merchants, businesses, apps, and most of all, decentralization. And so far, Bitcoin has been delivering as promised day after day, becoming the most valuable cryptocurrency in the world today. Just my opinion

Bitcoins have value because people are willing to pay for them (and of course, people are willing to pay for them because they have value). You have some companies dealing in bitcoins (i.e. selling and buying), and some places only accept bitcoins. Since some places accept it, there is a market for it. Since there is a market for it, it has value.

^ Just because bitcoin was already on medium exchange with a fixed amount only. So, this can be measured by its growing base of massive adoption and the value it matters on the demand and supply of bitcoin. This is probably simple answer for you to understand but it has meant a lot.
Nevertheless, I can't give a further explanation but here is a good site that probably gives you an idea of how it does happen, why does bitcoin have a value.
See this, https://bitcoin.org/en/faq#general.

Agree with you now so many people are agree to invest in bit coin as it has profitable investments ways and people get opportunity to get rich faster than any other business and it has good marketing value also the price is volatile it rises so high. Bit coin is now being trade by so many traders it makes good profit in trading field as well it can be use as currency's as well.

Another reason is because of its use. Bitcoin has really evolved from a long way and we can actually see its achievement throughout the years. One thing that we can never forget about Bitcoin is that moment when Bitcoin was used to buy Pizza's. We know that it has value at that time and it was low BUT as time passed by, when people realized that they can gain Bitcoin through some work (mine it, promote it, provide service) and other things. Bitcoin really changed the Cryptocurrency industry and placed it to be a recognizable one. If we understand how Bitcoin works then that is how we see its value.

For me, bitcoin has value because many people believe in its ability. And alot of people gets interested and others want to learn how to trade and earn from it, and also how to invest in it for the future.
As long as there are people who use bitcoin and some accept it for paying method, it will continue to have value.

Bitcoins have value because they are useful as a form of money. ... In the case of Bitcoin, this can be measured by its growing base of users, merchants, and startups. As with all currency, bitcoin's value comes only and directly from people willing to accept them as payment and also Bitcoin offers an efficient means of transferring money over the internet and is controlled by a decentralized network with a transparent set of rules, thus presenting an alternative to central bank-controlled fiat money.

Besides supply and demand, Bitcoin has value because it's decentralized and censorship resistant. It's those qualities which make Bitcoin a unique type of currency in the mainstream world. People who invest in Bitcoin can feel confident that their money will safe against third-party intervention. No government can freeze or manipulate your funds, unlike traditional Fiat currencies of today. As long as Bitcoin remains decentralized, people will consider it a valuable cryptocurrency. Usability and mainstream adoption are key towards a sustainable price in the long term.

I've seen many cryptocurrencies with limited supply on the market. Most of them have failed because they were either too centralized or were unable to provide real use cases for the mainstream world. It's a combination of mainstream adoption and decentralization for a cryptocurrency to be considered valuable worldwide. Despite some people saying that Bitcoin is made of "thin air", that's not really the case. Miners waste real world resources in order to "mint" new coins on the Blockchain. This, alongside a constant reduction in the block reward, makes Bitcoin similar to Gold. Let's hope that Bitcoin remains a valuable cryptocurrency for the rest of its lifetime. Just my thoughts

I have watched many youtube videos and article about this and your explanation is the shortest and clearest.

Will definitely use this whenever my friend asked

Thank you

For me,bitcoin have value because people patronized it. They understand the usage and importance of this coin and because of that the demand keep on increasing that bring it to become valuable digital currency. Another reason also ,bitcoin has only a limited circulation of supply over demand. And because of being volatile of bitcoin people know that through this they can earn money.

so why what about fiat . it cant be mined but it do still have a value  ?  other cryptos dont have a fixed supply but do still have a value too  .

 halving does not also trigger demand and it isnt built for that way  but halving have a different purpose   . decrease on the price of btc is the only thing i think of that triggers demand  but that is true that btc has a value because people bought it or put money on it by converting thier fiats   .

The reason why bitcoin have value it is because bitcoin can be mined and have limited supply. Bitcoin block is limited and it also experience halving that makes it in demand in the market, especially that as time goes by, many people are using bitcoin to trade, to buy and sell, to use in gambling and in many transactions.

As a payment method, bitcoin is really useful because of its price value compared in other currency just like fiat. It's price varies depending on the market situation and movement. That's the reason why there are people who are now engaging in bitcoin investment, because they know that there is something more than bitcoin, not only just a coin where you can use as a payment in many transactions.

It all comes down to one thing: Trust. - When Nixon got rid of the Gold standard the backup value of the USD got taken away as well. Since then, the Dollar is just as much as every other currency on the planet only valuable because of the trust in it. You can trust your local backery that you get goods with the value of 10.- if you pay 10.- The trust in the Dollar got damaged by the debt economy and its effects on the US market, now losing its hegemonial status to China again. 1.5B people "trust" the Yuan, but it is again just a currency based on trust.
The main difference between the trust to fiat and Bitcoin is that BTC also represents hope, liberty, privacy and a new way of doing things. It´s somehow an exciting new toy for mankind

To my opinion the answer is very simple, people are willing to pay to get the Bitcoin. So, Bitcoin has the value and defined specific price according to the demand and supply ratio at the market. As long as there are users who pays for Bitcoin, trade with it and use it as a payment method Bitcoin will have the value, just like any other currency, asset or anything else that is valuable.

Dear wozzek23, I would like the following to be understood: the practice of widespread trade exchange is the only thing that is eternal. And this is what defines the essence of any payment symbol. All derivatives and technologies, all these futures and so on, they are finite. The existence of states sometimes has big surprises, and what could not have been supposed 3-5 years ago suddenly becomes a reality. The same applies to the economic structure of the civilization of the planet.
I do not just believe, I understand that the future is an emission-free economy, in which there will be no derivative financial instruments, and no surplus value from the air. But for this, the world must become truly united.
It should be understood that bank interest and derivative financial instruments are not only a means of making profit and enrichment. This is a powerful catalyst for scientific and technological progress. It works like this: you are a businessman, you took a loan to start a business. To pay off your debts, you must control your business so that it constantly strives to be better than your competitors.
So, our conditional futures and bank interest is a catalyst. But, when you rush to the airport, and you see 200 km / h on the device, you know that you will slow down as soon as you arrive, and get out of the car to transfer to the airliner. And when you take off, you will be supported in a quiet flight by physical laws that are important for the car too, but not intended for flight.
Why Libra or TON with so many followers can bring trouble for a relatively stable transition to a new economic model? But because they embody an emission-free model too early. For now, emissions are needed and important for stability. It is clear that this has a limit, but the basis for such a transition should be ready.
Why is bitcoin not dangerous in the same role? Because it cannot become the basis and base of premature broad payments.
But Bitcoin may have additional features. About which no one is talking yet, and most people simply do not think.