Topic: Why is bitcoin worth so much ? - page 4. (Read 947 times)
Bitcoin is the leading cryptocyrrency that a lot of people and investors put a trust on bitcoin that they are continuously buying and holding their bitcoin in a long term. Even bitcoin does not have smart contracts, token supports, and has a high transaction fees, it is still secured and encrypted and backed by blockchain technology.
It's just simple really. BTC is the first cryptocurrency out there. It's the foundation that built the market. So there's no doubt that it will be the most expensive coin out there. And come to think of it, When people hear "Cryptocurrency" they're first thought is BTC not ETH, BNB etc. And the price of BTC really depends on the market. People know that BTC has the most potential to all coins/tokens out there. So that's what they initially hold.
What is the definition of "so much"? It is subjective. Gold prices may seem cheaper for some people and may not for most other people. Do you complain for that? Bitcoin gains its value because someone from somewhere ready to offer that price.
If you are ready to offer one million for one bitcoin and then if you buy all the bitcoins which are already available cheaper than one million then bitcoin' value will start trading above one million. You may do that if you believe you are able to sell bitcoins for the price higher than one million. Currently people are ready to pay ~$10k per bitcoin for the same reason
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If you are ready to offer one million for one bitcoin and then if you buy all the bitcoins which are already available cheaper than one million then bitcoin' value will start trading above one million. You may do that if you believe you are able to sell bitcoins for the price higher than one million. Currently people are ready to pay ~$10k per bitcoin for the same reason
.1.Btc transaction fees are high 2.Btc takes like 10 minutes - 1 hour to confirm 3.It has no smart contracts support 4.No tokens support Etc etc ...
Do you agree if bitcoin has the properties which are opposite to the above list, then it can have higher value?Ultimately, it will function like a closed economy where transaction fees are assessed much like taxes
What is closed economy? Every country runs from the taxes they do collect, so economy of a nation also falls to the category of closed economy? 
Why bitcoin is worthy?
1. Bitcoin is not worthy when it was created, it becomes worthy when people started to use bitcoin as a medium of transaction.
2. It has a scarcity in supply but large in demand. It`s total supply is 21 million that halved the mining for every 4 years.
3. It is the first cryptocurrency invented and it has many supporters/buyers.
4. It`s utility is simple yet helpful. It can`t be hacked or bypass the keys. Using elliptic curve cryptography, private can`t be reversible.
5. It can use to pay, transfer, asset, investment and many more.
if you guys believe that it is worthy only because of it`s price, we should bear in our mind that it is worthy because of its utility and security that gives to every individual that holds BTC.
1. Bitcoin is not worthy when it was created, it becomes worthy when people started to use bitcoin as a medium of transaction.
2. It has a scarcity in supply but large in demand. It`s total supply is 21 million that halved the mining for every 4 years.
3. It is the first cryptocurrency invented and it has many supporters/buyers.
4. It`s utility is simple yet helpful. It can`t be hacked or bypass the keys. Using elliptic curve cryptography, private can`t be reversible.
5. It can use to pay, transfer, asset, investment and many more.
if you guys believe that it is worthy only because of it`s price, we should bear in our mind that it is worthy because of its utility and security that gives to every individual that holds BTC.
Bitcoin is digital decentralised crypto currencies Main Bitcoin Aim Any transaction P2P Not information third party it fully secured.this is reason bitcoin worth future so high.
Bitcoin is a popular means of earning money in today's world, the number of Bitcoin users is increasing day by day, so I think the amount of Bitcoin transactions is also increasing ... Bitcoin customers choose Bitcoin as a good medium of transaction.
I think if Ethereum is the number one cryptocurrency and there are lots of people making use of it like they are doing with Bitcoin, the fees you will be paying will be more than what you’re paying now. Bitcoin is on top the list and is the only cryptocurrency that is well recognized.
I don’t have to tell you thatif you check online you will notice that Bitcoin is more accepted than any other cryptocurrencies, in fact I have not seen other cryptocurrencies being accepted anywhere; unless for Ethereum which I have only seen once. Even local over-the-counter traders where I live are not interested in Ethereum or any other cryptocurrency, they only trade Bitcoin.
I don’t have to tell you thatif you check online you will notice that Bitcoin is more accepted than any other cryptocurrencies, in fact I have not seen other cryptocurrencies being accepted anywhere; unless for Ethereum which I have only seen once. Even local over-the-counter traders where I live are not interested in Ethereum or any other cryptocurrency, they only trade Bitcoin.
The primary reason BTC is worth so much is because of the people.
BTC also follows the market of supply & demand. Supply as well as demand is quite high, so the BTC price is high.
That's also why the price fluctuates.
Hope this answered your question OP.
BTC also follows the market of supply & demand. Supply as well as demand is quite high, so the BTC price is high.
That's also why the price fluctuates.
Hope this answered your question OP.
That is a great understanding of the market, bitcoin worths that much because you pay that much for it. If you paid 100 bucks for it and everyone agreed then we would have bitcoin at 100 dollars, but since you are willing to pay $10k for it the price becomes $10k.
There is nothing stopping the buyers from not buying at these levels, when buyers stop buying the sellers will start to sell lower and lower to be able to sell their coins and when they fail to do so they will keep going down until they reach to a level where buyers start to buy. That is how the market price is decided and right now it is very high whereas it is not that high for the other coins. Basically it is the humans that makes bitcoin worth that much, it is us, it is you and me, there is nothing secret behind it.
There is nothing stopping the buyers from not buying at these levels, when buyers stop buying the sellers will start to sell lower and lower to be able to sell their coins and when they fail to do so they will keep going down until they reach to a level where buyers start to buy. That is how the market price is decided and right now it is very high whereas it is not that high for the other coins. Basically it is the humans that makes bitcoin worth that much, it is us, it is you and me, there is nothing secret behind it.
Bitcoin is worth as much as people are willing tp pay for it, it's defined by the market. It's similar like you've asked why.gold is worth that much.
Since Bitcoin is decentralized so not under control of any centralized body that could define or influence the price, it's purely defined by users. So, as long there is demand for Bitcoin it will have certain value. The bigger demand and the smaller supply, the price will go higher.
If it's defined by the market then we can totally say that bitcoin is the people. This isn't surprising for bitcoin since it came first as cryptocurrency, of course people will trust the first born crypto. If you see the first one that's still exists now there could be special about it right? Aside, the bitcoin had already built a reputation after hitting the ATH in the crypto scene, that's the most epic reason why people are buying bitcoin.Since Bitcoin is decentralized so not under control of any centralized body that could define or influence the price, it's purely defined by users. So, as long there is demand for Bitcoin it will have certain value. The bigger demand and the smaller supply, the price will go higher.
Basically people chooses bitcoin because bitcoin is the top currency.
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Since you're comparing ethereum with bitcoin, let's take the demand of both asset into discussion. Although ethereum has benefited from the market in the past couple of years as a result of the hype from crowdfunding and been tagged the mother of altcoins etc, also benefiting from the anticipation of its forthcoming upgrade (ETH 2.0) still it can't be compared to the demand of bitcoin and trust it has gained in her 10 years of operating.
Now when the amount of tokens both asset has in circulation, in regards to their supply. The supply of ethereum is way bigger than that of bitcoin therefore you don't expect both asset to have the same price irrespective of them having equal or close range market capitalization. When you're comparing bitcoin to other cryptocurrency do understand that we're not yet half way into the potential price bitcoin as an asset can attain therefore the current price shouldn't discourage you from investing into it.
Now when the amount of tokens both asset has in circulation, in regards to their supply. The supply of ethereum is way bigger than that of bitcoin therefore you don't expect both asset to have the same price irrespective of them having equal or close range market capitalization. When you're comparing bitcoin to other cryptocurrency do understand that we're not yet half way into the potential price bitcoin as an asset can attain therefore the current price shouldn't discourage you from investing into it.
Why is bitcoin worth so much ?
Bitcoin price $9,442.51 coinmarketcap
Ethereum $236.39 coinmarketcap
1.Btc transaction fees are high
2.Btc takes like 10 minutes - 1 hour to confirm
3.It has no smart contracts support
4.No tokens support
Etc etc ...
Where does the value of bitcoin come from ? I don't understand the logic behind the valuation ...
The value comes because of the fact that Bitcoin is the genesis of all the cryptocurrencies and also that ethereum is having an unlimited supply but bitcoin supply is limited to 21 million coins which will be mined by the end of 2140, so limited supply and high demand of bitcoin which ultimately makes its price higher than the most of other cryptocurrencies. Bitcoin is more of store of value rather than a currency to most of the people, they are saving their bitcoins and using altcoins like ethereum for transactions and paying for goods. Bitcoin price $9,442.51 coinmarketcap
Ethereum $236.39 coinmarketcap
1.Btc transaction fees are high
2.Btc takes like 10 minutes - 1 hour to confirm
3.It has no smart contracts support
4.No tokens support
Etc etc ...
Where does the value of bitcoin come from ? I don't understand the logic behind the valuation ...
Bitcoin is worth as much as people are willing tp pay for it, it's defined by the market. It's similar like you've asked why.gold is worth that much.
Since Bitcoin is decentralized so not under control of any centralized body that could define or influence the price, it's purely defined by users. So, as long there is demand for Bitcoin it will have certain value. The bigger demand and the smaller supply, the price will go higher.
Since Bitcoin is decentralized so not under control of any centralized body that could define or influence the price, it's purely defined by users. So, as long there is demand for Bitcoin it will have certain value. The bigger demand and the smaller supply, the price will go higher.
Everyone didn't expect Bitcoin to gain market value at the start but the creator would like to emphasize the importance of this technology in the future that could help to encourage people to take on it. From $0 to $20k, people didn't think about it and that it catches attention when the bullish had come. We can see an important role for Bitcoin nowadays and that could also be a reason for the price to spike.
High fees could actually get attention and worries especially for small investors but not a thing to worried about. Fees may go high or down as well depending on the market situation.
High fees could actually get attention and worries especially for small investors but not a thing to worried about. Fees may go high or down as well depending on the market situation.
It is the king and the most known widely accepted cryptocurrency in the market.
Yet, it is the most popular and the volume of people who are using this cryptocurrency are extremely high compared to other coins. Some coins are making bitcoin as its basis in terms of its price, that's why the population of bitcoin holders are progressively increasing in number.
You are missing that all coins in the industry are paired with Bitcoin. This means the there is high volume and high demand for Bitcoin every time someone wants to buy any altcoin.
Bitcoin really is the hardest to manipulate among coins because of its worth and extreme value in the market, but its profit that it can give you is also high compared to those altcoins that are existing.
Altcoins are really an alternative and bitcoin should be your always priority whenever you engage into some transactions or holding.
But still, both of the coins can give you profit depending on your manipulations.
for one reason Bitcoin is not controlled by anyone. It is a free coin and manipulation organizations have taken advantage of this to push bitcoin's price up and own lots of bitcoins. They will then become one of the richest people in the crypto market and continue to manipulate the whole crypto market. That is the main purpose for the price of bitcoin to grow. So, from the beginning I didn't have the concept of investing in technology, this is just a price-making market. New trading makes us rich.
Bitcoin get so expensive because it got so popular. And its only limited. Investors are attracted to it because Bitcoin is trust worthy crypto currency.
Why is bitcoin worth so much ?
Bitcoin price $9,442.51 coinmarketcap
Ethereum $236.39 coinmarketcap
1.Btc transaction fees are high
2.Btc takes like 10 minutes - 1 hour to confirm
3.It has no smart contracts support
4.No tokens support
Etc etc ...
Where does the value of bitcoin come from ? I don't understand the logic behind the valuation ...
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Here is another thing i found :
Even when the last bitcoin has been produced, miners will likely continue to actively and competitively participate and validate new transactions. The reason is that every bitcoin transaction has a small transaction fee attached to it. These fees, while today representing a few hundred dollars per block, could potentially rise to many thousands of dollars or more per block as the number of transactions on the blockchain grows and as the price of a bitcoin rises. Ultimately, it will function like a closed economy where transaction fees are assessed much like taxes
Source: https://www.investopedia.com/tech/what-happens-bitcoin-after-21-million-mined/
Bitcoin price $9,442.51 coinmarketcap
Ethereum $236.39 coinmarketcap
1.Btc transaction fees are high
2.Btc takes like 10 minutes - 1 hour to confirm
3.It has no smart contracts support
4.No tokens support
Etc etc ...
Where does the value of bitcoin come from ? I don't understand the logic behind the valuation ...
-----------------------------------------------------------
Here is another thing i found :
Even when the last bitcoin has been produced, miners will likely continue to actively and competitively participate and validate new transactions. The reason is that every bitcoin transaction has a small transaction fee attached to it. These fees, while today representing a few hundred dollars per block, could potentially rise to many thousands of dollars or more per block as the number of transactions on the blockchain grows and as the price of a bitcoin rises. Ultimately, it will function like a closed economy where transaction fees are assessed much like taxes
Source: https://www.investopedia.com/tech/what-happens-bitcoin-after-21-million-mined/
It got to people first, and unlike what you think many people are working CONSTANTLY to improve it.
It is easy to explain..... Let's say tomorrow people decide that it is better to pay people with Coca-Cola bottle caps and everyone starts doing this, then Coca-Cola bottle caps will become more desirable than other payment options. Let's say this goes on for 5 years and suddenly a small percentage of people start accepting toilet paper.... then Coca-Cola caps will have a 5 year advantage over other payment methods.... because the network behind bottle caps was larger than the network accepting toilet paper. 
Also... imagine Coca-Cola only decided to create 21 000 000 bottle caps and then they destroyed the machines that manufactured these bottle caps and then you compare it to the toilet paper companies that are just printing unlimited rolls of toilet paper... Which one would you choose? (Toilet paper = government fiat currencies)
Also... imagine Coca-Cola only decided to create 21 000 000 bottle caps and then they destroyed the machines that manufactured these bottle caps and then you compare it to the toilet paper companies that are just printing unlimited rolls of toilet paper... Which one would you choose? (Toilet paper = government fiat currencies)
So much trust of Bitcoin that’s why its the most valuable crypto assets. If the fees are main problem there’s a lightning network that everyone can use, if we use Bitcoin and crypto we should understand its risk because its not the ordinary currency that we knew its volatility in nature is what makes it attractive to investors.
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