Topic: Why Does Bitcoin Have Value? - page 7. (Read 2851 times)

Prices are formed due to demand.
Exactly. The psychological aspect does control an important role, often the FOMO will strengthen if there are good rumours and news, especially if it offers a big advantage.
Especially when it was a pioneer in the formation of a new investment system and supported by unique and functional technology. That is why every product has a target consumer. In the digital age, of course, we will be out of date if we don't keep up with technology.

I'm not gonna write typical answer like others...
Value of something is psychological factor in any way. If you teach me that stone has value and everyday I see that, for me it will become value. What's cash? Paper money + some costs of everything associated to printing process. So with that logic, 50$ and 100$ has the same value, what differs them is the number shown on paper, nothing more. If we see 100, we think it has value of 100$ and so on. But everything isn't like that, economics plays important role too and combination of economics, political stability, people's education and almost combination of everything that happens in this world, gives value to our currencies and everything.
But when we talk about bitcoin, yeah, there are some different and important factors too. When calculating of bitcoin's price, mining profitability matters too, that's why people are waiting so positively for halving. On another hand, even this process is psychological factor too, people think that price will rise because of this and in reality nothing happens itself, we make this reality. Bitcoin will have zero value if one day people wake up and discovered that they don't have access to their wallets. So again, psychological aspect plays huge role too. Bitcoin has zero value for old person who knows nothing about internet and computer and don't have enough possibility to learn it because of age.

Despite naysayers' comments, Bitcoin has been alive and running for 11 years since inception. It's always been valuable because of its decentralized and censorship-resistant qualities. Not to mention, Bitcoin is a deflationary cryptocurrency while Fiat is not. It's the leading cryptocurrency on the market, where most (if not all) altcoins depend on it to survive in the long term. Despite its slow transaction confirmation times and high fees, Bitcoin is still a useful cryptocurrency for cross-border payments worldwide. With the Lightning Network, people can finally enjoy instant transactions at a fraction of the cost.

Given that Bitcoin is completely independent from the world's monetary system (sort of), many people compare it to traditional Gold. It'll never go to zero in price, because of the way it was designed. Besides that, it's the most widely-adopted cryptocurrency in the mainstream world. Anyone saying otherwise is simply a true hater of Bitcoin. Warren Buffet and other wealthy people worldwide are against Bitcoin, but that's because they don't understand its true value yet. Eventually, this generation be left behind as "millennials" will embrace crypto and Blockchain tech more thoroughly. Physical Fiat will phase from existence, paving the way for CBDCs. As long as there is demand for Bitcoin across the market, it'll always have value. Just my thoughts

As always, this issue gives rise to a rather active discussion between Bitcoin supporters and skeptics.  but the fact is that Bitcoin really has a lot more value than other currencies.  First of all, BTC for the possibility of using it as a means of payment, as well as fiat funds, but only the value of fiat currencies is supported thanks to the government, whose actions often provoke inflation.  and the value of Bitcoin lies in its code, as well as in its scarcity.  Perhaps it is because of this that many users call Bitcoin digital gold. I think that people will understand the importance and value of bitcoin in the future, when their savings will no longer depreciate, as is happening now due to the increase in the mass of paper money.

The world is dynamic and constantly changing to find an effective system. Cryptocurrency, especially bitcoin offers many opportunities, we can do many things including trading, investing, and making payments (although limited) with only one component. Very effective right?
Today even Bitcoin is a valuable investment tool, like gold, but with more extreme price changes.

Hello everybody. A lot can be said about why bitcoin is valuable. But the most important thing that you can immediately say in the affirmative is that Bitcoin is not possible to fake, like any paper bill. Any currency of the world can be printed in an unlimited number - Bitcoin has a certain number of coins. These are for me the most important motivating reasons to buy bitcoin whenever possible. These are the main arguments against the "wise men" who claim that bitcoin is scam.

Agree. Bitcoin is still in its very beginnings. It has value because of its decentralized and censorship-resistant properties. Not to mention, Bitcoin is deflationary by design. Some people say that Bitcoin is "made out of thin air" but that's not the case since real energy and hard work is spent for the mintage of new coins on the Blockchain. As long as Bitcoin remains close to Gold in every way, it'll be an extremely valuable cryptocurrency for the foreseeable future. Right now, it's more useful as a store of value than digital cash. The fact that Bitcoin is decentralized, makes governments' efforts against it useless in the long run. It's the first monetary system that brings people freedom above anything else. With no greedy bankers charging you high fees, or maintaining custody of your funds, you're the sole owner of your Bitcoin.

Remember, Bitcoin is like Gold where it retains its value for many years. The more scarcer it gets, the more valuable it'll be in the future. As long as there are people supporting the pioneer cryptocurrency, it'll always be used as an alternative to precious metals like Gold or Silver or even traditional Fiat. It's undeniable that Bitcoin will be here to stay regardless of its price for a very long time. Just my thoughts

Bitcoin has a value because people give value on it and patronized it. They understand the nature and importance of bitcoin and accept it a valuable digital.currency. Also the creator of this bitcoin is so genious,because he/they make sure that people will accept and use it. That's why the demand increasing since from the start until now that keep this coin valuable in crypto world.

The estimation of bitcoin is gotten from its unique uses for cash moves and settlements. This is constrained inventory, shortage, cost reserve funds and numerous potential employments. On the off chance that you purchase for day exchanging, you may lose cash, yet on the off chance that you hold it long haul, it is demonstrated that you get an extraordinary ROI. What's more, Bitcoin has quite recently started, think about the web/email of the 90s/90s. A decentralized innovation that utilizes a significant one won't vanish, regardless of whether some severe government attempts to boycott it.

Exactly. People are the ones who determine the value of a Bitcoin. This is completely different from Fiat where a central authority is the one who determines the value of the currency being issued to everyday people. Considering that Bitcoin is decentralized, anyone can determine its path forward both in terms of price and mainstream adoption. Bitcoin is still valuable because there are people supporting it in the mainstream world. Since the pioneer cryptocurrency is censorship-resistant and resilient against external attacks, people have considered it to be a valuable asset within the mainstream world. Take away Bitcoin's decentralization and you'll see how worthless it'll become over time. The true value of Bitcoin lies in its underlying technology (Blockchain) which provides unparalleled security, reliability, and freedom unlike any other asset in the mainstream world. It's often compared to Gold because of this.

As long as there are real use cases for Bitcoin in the mainstream world, it'll continue to be a valuable cryptocurrency for years to come. It's very unlikely it'll ever lose its value, as many people trust it after all these years. The pioneer cryptocurrency serves as an alternative monetary system that does its job well in providing financial freedom to anyone without the fear of getting funds frozen or confiscated by a third party. No what happens in the mainstream world, there will always be a use for Bitcoin because of its decentralized nature. Just my thoughts

'scarcity and utility', 'proof of work', 'speculation', 'manipulation', 'price'.
All these characteristics are related to BTCitcoin but for a person like me. I'm not looking to fill my bags, Only I want to earn a decent income from my work.
Awesome, it's the great value that Bitcoin has for me. Bitcoin can empower the economy of many from individuals to the largest industry.

I think you're missing a key third factor - people give it value. This utility and scarcity could not be enough, the fact that people who use bitcoin think it has value also gives it value. This third factor I'm talking about is what made it rise so much during 2017, utility and scarcity might have got it up to $2k on 2017, but it was people's perception what got it to $20k. It's also why it crashed so fast, but still the point is valid, it's when there's equilibrium between these that you get a stable price.

Exactly. Bitcoin doesn't need Fiat since it was designed to "live on its own". Satoshi intended Bitcoin to be an alternative to the existing monetary system that's prone to corruption and fraud by central banks worldwide. The only reason why Bitcoin has a price in terms of Fiat, is because people measure the pioneer cryptocurrency against the USD as a unit of account. We all know that 1 Bitcoin will always be equal to 1 Bitcoin no matter what. The fact that Bitcoin is a deflationary cryptocurrency with unmatched security, tell us that is still has value. It's just that most people hasn't recognized its true benefits yet.

Once trust is lost on the financial system of today (The FED), you could expect many people joining in the Bitcoin bandwagon. This could take some time though, as people are still focused on Fiat in these desperate times. Slowly but surely, Bitcoin will become recognized as the true save-haven asset of the world. If you put Fiat aside, you'll notice that many services and jobs are provided or paid for with Bitcoin. The number of people accepting the digital currency for daily payments is at an ever-growing rate. Anyone can work for Bitcoin, and even buy stuff with it directly without ever having to interact with Fiat. If you want contribute to the crypto economy, it's best that you never cash out for Fiat. Instead, use crypto directly for sending/receiving payments just as you would with Fiat.

In the end, Bitcoin will become Gold's successor as people will use it in times of need. The collapse of world's economic system will happen soon, paving the way for widespread adoption of Bitcoin and other cryptocurrencies. With the next halving just 2 months away, prices might rise a little in terms of Fiat. But even if everything remains the same, Bitcoin will always be there as an alternative to Fiat that's censorship-resistant giving you complete control of your money no matter what happens in the mainstream world. Just my thoughts

In my view that bitcoin has value because many use it, so the amount of demand for bitcoin is very high make bitcoin the higher
the value too. Especially if it can indeed make bitcoin into a global currency, it can make all people in the world scrambling to have
bitcoin, if this happens it can also make the price of bitcoin more expensive.

I don't think it needs fiat at all. One of the problems preventing mass adoption is hostility toward Bitcoin. If you could create an autonomous community that makes Bitcoin it main currency, Bitcoin will thrive in the community... Imagine if you have many of such communities. And If the community members prefer physical currency or cash to a virtual one, you could  replicate the Bitcoin Blockchain in physical form so that it's totally independent of virtual Bitcoin Blockchain and the internet. The community can always merge the entire transactions on the physical Bitcoin Blockchain to the virtual Blockchain whenever internet is found. But it definitely can exist without the internet as long as possible while retaining the features of its virtual form like immutablity, transparency, deflationary coin, censorship resistant, privacy/anonymity, trustless/permissionless etc

The problem with USD is, even with unlimited supply, you don't even get a cent of those newly created USD, its only for the riches. However, most of people still live in illusion and think that USD should have stable value and can be used to measure value. It is something like religion, as long as they believe it, it works. (And that religion easily break in another country, when another government claim that USD is illegal in circulation and force people to use their fiat currency, so it is actually based on violence)

That's the reason there should be a non-violence and non-political approcah. Energy can not be created out of thin air, and there is no problem to measure the energy content in food or in oil, in the end, only the production energy input matters. Food making is achieved by absorbing energy from solar power, those energy can be regarded as free, but you still need labor and land and chemicals to realize its value, and that is the basic cost of food. All can be calculated, much easier than rocket science

So by using an energy unit, where 1 unit is 1KWH, once people have their religion established upon it, it will be rocksolid, much more than fiat currency. And over time, since the production technology improves, every product's energy cost will be less, means cheaper and cheaper products and services. In fact petroleum is already such an energy unit, with one barrel of oil, you basically can do similar amount of things using internal combustion engine, no matter what kind of job that is. I think the Petro cryptocurrency in Venezuela very closely assemble my idea, but it is also affected by oil price, which is measured by USD, so the religion of USD really twisted the world

We(the market) are the one that decides the value of what BTC will be. This is why is the volatility is high and can never be stable.
There's a time BTC was worth less than cents, it became more valuable when it started gaining recognition and big institutions started coming in.

I am not disagreeing with you on this part. I also think USD is turning in to a joke. Having said that, the supply isn't unlimited per se. There is a still finite amount of USD in circulation, so the supply does have a limit when we look at a snapshot. The worrying thing is looking to the future, with the Fed committing to printing however much money is required. The supply won't actually be "unlimited", as the Fed will stop somewhere, but the supply will be heavily inflated and the value of USD will be heavily diluted. What I am disagreeing with you about is that your proposed energy-based money would be anything other than completely subjective, as not only is energy not a constant value (as I explained in my last post - 1 KWh of energy is worth vastly different amounts depending on the state or form it is in), but there is no objective way to accurately measure the energy required to create a product.

Supply and demand is what gives a product or a currency value, and it is no different with bitcoin. Bitcoin's fixed cap, however, overcomes the problem of USD and all fiat and makes it a superior currency.

In my model, more energy input means more value, so it is just USD value suddenly get pumped due to lots of demand but lack of supply. But this is short term market shock and USD supply is unlimited based on FED. Supply and demand theory says that if something's supply is unlimited, it should have zero in value, why not apply it to USD?

I think this is just enough reasoning for the greater percentage of people out there and one of them is me.
I am not that tech savvy guy, I just have little knowledge about computers and smart phones. But, when it comes to mining, development of bitcoin and other stuff, they are all like coded message which is difficult to understand. 

The thing though is you don't have to be that guy. You don't also need to go deep into knowing bitcoin like your bestfriend.
I have asked a lot of questions here like LN, SegWit and a lot more and thank God I was answered in a shallow sentenced manner. 
Somehow I understand the basics so I will stick with that and just update myself whenever something new pops out.