Why is bitcoin worth so much ? - page 6.

spy100

sr. member

Activity: 658

Merit: 257

Quote from: so98nn on June 14, 2020, 05:39:27 AM

Ethereum has virtually unlimited supply while BTC is capped to 21 million coins.
...Moreover, you get value because investors keep buying it.

But if you have 1000 usd and you want to transfer it to another person i don't get it how bitcoin can help me ...

Example i want to send money to a person B in another country

I Person A have 1000 usd
To exchange it it cost me around 5% - 8%
Now i have 920 usd in btc form ...do to fact bitcoin is so volatile i could lose another 50 usd in 10 minutes or gain 50 usd ...just speculation
I send it to person B a small transaction fee is taken
Now person B has to exchange it to Fiat he got to pay trader / exchange platform another 5%-8%
After exchange person B has left around 846.4 usd

That's a 15.36 % loss just from exchange cost
More expensive the WU,direct bank transfer,paypal etc ...

so98nn

hero member

Activity: 2114

Merit: 603

Ethereum has virtually unlimited supply while BTC is capped to 21 million coins.

Out of this 18,404,300 BTC are in circulation. If you understand the basic principle of Demand and Supply then it would be easy to grasp this. The demand is heavy for bitcoin while it's supply is limited.

After each 4 years it will go under halving thus reducing its rewards per block, making it more costly to mine for miner. Since it use Energy to mine via miners, the energy required is now more and more.

This is converted into money later when people buy it.

It will keep rising since energy requirements to mine the coin will keep rising throughout the time, and also supply will keep reducing.

Moreover, you get value because investors keep buying it.

Naida_BR

member

Activity: 980

Merit: 62

It is the king and the most known widely accepted cryptocurrency in the market.
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.

spy100

sr. member

Activity: 658

Merit: 257

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/

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