Bitcoin Forum

I was researching and reading a certain Whitepaper from a good token project and this statement really struck my thinking:

"With no government or “anchor” backing up cryptocurrencies, the only foundation that cryptocurrencies have is people’s faith in their value. In other words, solely the market mechanism determines the price of cryptocurrencies. At my time of writing, that faith is worth is over $2000 per Bitcoin and this doesn’t spur from the Bitcoin’s intrinsic value, but from what it allow users to do."

In this case, what will happen when that same trust from Bitcoin holders can be diminished or for heaven's sake be gone...would that be the end of Bitcoin?

This also  lead me to the question: is Bitcoin really a store of value or more of a medium where our trust is plastered on?

Indeed we don't have like an owner or leader, and that's what makes bitcoin great. And yes, bitcoin's future depends on the devs and miners and our faith and trust in them.

If ever the devs decided to abandon bitcoin (kinda unlikely), then yes, it would be definitely the end of bitcoin. unless some other devs decided to join in and carry on to developing bitcoin.

Bitcoin is great when talking about store value. But just like every other kind of investment, there's risk.

It is very difficult to understand on what is based the confidence in bitcoin and allowing you to have such a demand for it. But as my friend said "Not necessarily know how it works, you just need to believe in bitcoin".

Bitcoin is Started on People's Faith, Based on Technology and Demands

I believe that's true.

We all have faith in bitcoin that eventho the price may go down, but at a certain time it will rise up again.
And this thing keep repeating, again and again.

At some point, we might lose hope in bitcoin. And thought soon or later bitcoin will come to an end.

Yeah I really think that bitcoin started with the Faith of the people using it,
And I hope that bitcoin would continue and be with us for a long time.

There is nothing to deny. The growth happened just because of the faith that people had over it. Apart from this the innovation is something that has never made an evolution in the economic sector. Here the technology itself got implemented on various sectors just because of the effective functioning. This is also the reason why people have faith on it and upcoming days no fall will happen as more users have been continuously making faith on it.

You do realise that most fiat currencies aren't actually backed by much more than people's trust in the government or the banks, right? Even the most used currency in the world used to be backed by actual, physical gold, but not any more.

If you want a recent example of what happened when those governments failed to keep their promises in backing money, read up on Greece.

If the developers leave the development, others will come and since the project is open source, anyone could contribute. If miners decide to stop, that will make it less difficult for other people to mine so others will join. The only issue would be to see the bitcoin community leaving, then, you can say bitcoin will die. I don't see it happening though, It's growing, more ATMs are spreading around the world, more services are accepting it, more countries are regulating it, It can't simply crash overnight.

People believes in bitcoin because they have reason to believe.

That's why the strong foundation of bitcoin is the development of it. Once it was fully enhanced, people's faith will be more stronger as time passes by. What about those newbies who doesn't know technically about bitcoin? Their faith came from what they read as positive or others saying. And once they slowly learned what bitcoin is, then expect they will have more faith to bitcoin.

Yes everything in bitcoin is based on trust and all of the investors investing in bitcoin based on trust, they believe that bitcoin will have a better value in the future that is why they invested in bitcoin, and if that trust is broken then investor will change to another coin to invest

I am bit amazed actually, you do research read papers and you don't know a simple concept of demand and supply. Bitcoin rises when it's in demand and supply is less or some major event happens, like Japan accepted it and rest is history, now it will fall if it supply exceeds demands. It is important to understand basis first, before reading papers, you can even head to the economic section you will enlighten yourself a lot.

Your doubt seems very logic.Since there is no central board for bitcoin unlike world gold council for gold which controls gold price,bitcoin price directly depends upon the increase or decrease in demand for bitcoin.But,we could see japan has legalized bitcoins and following it,more companies are ready to join that rally.Also,newer companies are coming forward to accept bitcoin payments.We could easily judge that probability is more for bitcoin price increase.So no need to worry about bitcoin losing its value.

the part i hate most is faith
people think if they just sit and wait something miraculous will happen

bitcoin has no voice of its own.
bitcoin has no legs or arms.

i see many people cry that they cannot use it at their local store, but then say "if i wait it will happen"

people need to actually go to the store and request the store accepts it. set up bitcoin meetups with other locals and actually do things in their local area.

thinking bitcoin will code itself into the retailers system wont happen, bitcoin is not an self replicating artificial intelligence. it require people.

unlike other crap coins, bitcoin is better due to merchant acceptance and utility. all it needs now is people to stop waiting for miracles and to start making things happen to help grow bitcoins utility.

anyone saying bitcoin will just be a store of value are usually the people that dont want it to have any other utility or cant be bothered to help grow that utility

Bitcoin is not and cannot be a store of value

It is a speculative asset and highly if not to say extremely speculative at that. Such assets simply cannot be a store of value by definition. Regarding faith, it is equally applicable to fiat currencies as well. It doesn't really matter if there is a government behind a currency or just an algo limiting its issuance, it still inevitably and ultimately comes down to faith. Zimbabwean dollar had the government "backing it up", and how much did that help it? If the majority of people lose their faith in some currency, it is basically doomed, and the US dollar is no different in this regard

you can call it faith, demand, value based on utility, {or whatever other names you like.} in the end bitcoin is not different from anything else in the world that has a value.

value of everything you can think of comes from {put that name here}. who says a Gold bar's value is not based on faith of people.
who says an apartment's value in the middle of the city is not based on people's faith.
....

people use these words to give meaning to things they can not understand. in fact bitcoin value comes from many things it is first the demand, then the utilities, the merchant adoption, the security, being an excellent store of value and a currency at the same time...

Aside from people’s faith, the growth of bitcoin happened because more people are using it and investing in it now. Without them, those people who invested, it is impossible for the price of bitcoin to get an increased just like what recently happened. Another country invested in bitcoin which results to a sudden increased in bitcoin’s price from less than 100K to over 130K in PHP.

For me, people’s faith is not enough for bitcoin to be of more use. It will be very helpful if, aside from faith, we are going to do something to help bitcoin gain more popularity. Another is that if bitcoin become more popular, it will attract more investors and more projects are going to be implemented through the use of bitcoin and crypto currencies.

Well the same things goes for fiat money, it's not like fiat is able to work without the people's faith that it will still be buying them bread or circus tickets. If people stopped believing that they would be able to pay in fiat then its value would collapse too, since the government, while saying it "can" buy stuff, wouldn't necessarily be able to enforce something like that.
But yes if the community was losing all trust and people were no longer accepting Bitcoin, which would also be shown with a drop in value, then there's a pretty high chance that Bitcoin could collapse because of it, since it relies on the community to propagate.

Every single thing in life is base on faith. Even basic necessities like bread. The price is based on the expectations and fears of all of us.
Bitcoin is no different, which is great. If bitcoin was different from normal investments I would be truly worried.
Just diversify and you will be fine.

Cough bullsh*t cough bitcoin was from the moment it was born in to this world completely based on mining power, looks like you don't understand it well enough, bitcoin is like microwave, when it was invented people saw good use for it and started to buy for their houses.
Electricity is a great invention and now our lives depend on it, bitcoin simply is offering a decentralized currency and has the ability to act as the bank for every user, now as we can see there are many different cryptocurrencies just like there is Apple/ Samsung/ LG just different brands but the same concept.

Bitcoin is based on people's vision to change the world and also to change their own life.
We don't like current financial system, we don't like banks, loans, poorly paid jobs and unequal distribution of wealth in the world.
So, with Bitcoin we have tool to change our own life, to get rid from the banks, to become financially free etc.
It's awesome and it's one of the main reason people likes bitcoin, and have faith in bitcoin.

Yeah faith is one of the things that give bitcoin its value. Faith that bitcoin is a collectible and that it would be sought by more collectors in the future thus believing that its valuation would be more than what it is now.

It is this faith that somewhat gives bitcoin store of value. One day a collector with a heavy collection of bitcoins has a crisis of faith and dumps his bitcoins, other collectors would follow, value drops, store of value gone.

A balance between store of value and as a medium of exchange should be maintained to prevent bitcoin market getting influenced by even small pumps and dumps. As more people use bitcoin as a medium of exchange, the price would obviously increase, but it would also make bitcoin more stable and less volatile since the price would not get affected by small scale pumps and dumps and stability is what bitcoin needs the most.

While such generalization is certainly true, it is of no particular use for any practical purpose in and of itself

It is more useful to divide things according to whether they have intrinsic value (utility) or not. If they have such value (like, for example, gold), then the faith that people have in such things can't be lost as easily as in regard to things which don't have intrinsic value. Bitcoin and fiat currencies belong to this group, and as such they don't have intrinsic value, their value comes about exclusively via deliberate assignment for attaining specific ends. For example, money tokens cease to be money as soon as they are declared null and void by the government that first assigned to them the function of money

Do you really think other currencies aren't based on trust? Government backing doesn't mean anything when people don't believe in it and don't want to use it. Look at some of the inflated African currencies. They are backed by governments and still worth dust. Like those dollars from Zimbabwe and similar banana republics.
Trust and faith is the most important. The government doesn't make a country, the people do.

Having Faith solely with bitcoin is not really the right thing to do in my opinion, well right now even if you would know that the value of bitcoins is gonna reach the maximum out reach of rising, but what if the price would crash a bit over a $500 price for example you have converter all of your money to bitcoin and then the price stumble down a $500 dollar lost then you have lost certain amount, well this would work if you are OK with investing all of your money to it and you don't have to settle something with any expenses which is Fiat money is good for, well don't give your 100% on it if you don't want losing any amount, I think yo just have to invest a amount that are OK for you to lost, this can be apply with trading and gambling too.

You either have faith in the government or you have faith in a decentralized technology that are based on a open market. {Supply & Demand} The

governments of this world manipulate the value of you Fiat money by increasing the supply or reducing the supply. {If you live in some

countries, then you will experience this first hand, because they print Fiat money like toilet paper} You believe that other people working for the

government, will have your best interest in mind... That piece of paper or that coin require a lot more faith than Bitcoin.  ::)

I could have suggest follow the main purpose of bitcoin then automatically it keeps its value never go down. The main purpose of bitcoin is easy transaction without the mediators like bank exchange so it will be less fee and very good transaction speed . When people started to break rule like what happens misusing every other thing in the world the same going to happen with bitcoin

Everything is based on faith, including the dollar, the government, pretty much everything. Without faith then it doesn't work.

What makes bitcoin different is that nobody can rig the system without getting caught because it's open source. Jihan Wu tried to game the system with the ASICBOOST scam and got caught. If anyone tries to change the code, everyone will know.

Meanwhile the governments can become corrupt and tweak the system against us because it's not open sourced.

bitcoin means freedom of money control. no government or banks will control our money we can do that in a better way, it is really awesome that it reached $2000+ price scale. banks are surely scared right now and maybe there is the world's biggest price scale crypt currency right now is one and only bitcoin. its likes a magnet price in the market and our faith both attracts each other. there is no way to stop this now if you leave you losses the opportunity.

Faith is something too strong you feel not based in concrete facts.

I think it's different from the feeling people have in relation to Bitcoin. If people is investing their money and time in Bitcoin it's because there is a solid structure making this system work and everyone knows how it works, there is a full explain about it, you don't need to have faith in Bitcoin.

When you have faith on something there isn't a full explanation about it, you have a strong feeling that you are believing on the truth, but no way to proove to other people 100% if it's real or not...

People invest in Bitcoin not because they have faith, but because many people already made a lot of profit from it, specialists say it's a good business and have how to proove it, so it's a logical wish, fully backed by the Reason and not the Emotion.

Bitcoin will not end till all bitcoin nodes will be destroyed which is quite unlikely. Bitcoin is both store of value and reliable/cheaper payment solution. In simple words we can say bitcoin is a digital gold where value/price of it is set by demand and supply.

Rather revolves around the emotions, bitcoin is not a cult or a theory to be based on beliefs, Satoshi wasn't a god rather just a person with a bad habit of masturbating a lot :D
I'll share my true and personal interactions with bitcoin, whenever it comes to trading if I am sexually active then I'd be influenced by my desires, if in a chat box or messenger application someone turns me on or better yet if the movement of buy/sell orders turns me on then I buy no matter how high of a price or sell no matter how low of a price, maybe I'm really a wh*re after all just like my brother suggests :D now while you all are scratching your heads undecided what to do I already sold 80% at $2790 and bought back with the same amount of fiat only this time I have actually 9 more coins.

That's true, crypto currency is backed up by public trust only. And the public trusts only the price of a particular currency. Probably the 0.001% people associated with bitcoin actually loves the technology and trying to explore new opportunities with it, but rest of them wants to grab profits only. They also take part in technology also, but the motto is price and profit only.

Today bitcoin is an excellent investment option and hence people are investing money in to it. Also they are withdrawing money once their goals are met. This is how the crypto currency market functions.

This had been discussed several times here just in different phase.  If people lose faith in this coins, I think Bitcoin will still go on.  Aside from people faith, the traders speculative thinking runs this coins too.  These traders does not have faith in Bitcoin tech but rather rely on their instinct whenever bitcoin price goes down or up and take profit out of it.  As long as there is profit to be taken in this cryptocurrency, traders will always flocks in and thus creating volumes and trades for this currency until this speculative thinking stop, bitcoin will never die...

Basically this is not just about faith. It includes a lot of hardwork for us to succeed in our dream in bitcoin. There are a lot of sh*t post right now about btc trying to play their game agaian. Faith would only be a factor

That is right because the bitcoin is based on the supply and demand so as long as many people are investing into bitcoin the bitcoin price will go up. And the bitcoin is limited supply only so the tendency of it is always going up if many investors are investing to the bitcoin. So let's just hold our bitcoin for future.

If I'm mistaken, please let me know:
BTC is "backed" by people's trust in "the math" and related encryption.

AFAIK that is/was/used to be common knowledge around here.

Well, people's faith in Bitcoin has been tested many times throughout its existence in many ways - the crashes, Butterfly Labs, pirateat40, MtGox, Bitfinex, mainstream FUD and on and on. Even now with the hardfork/scaling issues.

Despite all the setbacks and negative light through the years, Bitcoin just keeps on keeping on, stronger, higher with growing adoption everyday.

In really looking at Bitcoin today, it has really gone this far because of people who has put into it their interest, time, money and even focus to make it better, bigger and convenient to users, customers or crypto-currencies lovers, see.
The end of Bitcoin only depends on the Devs, because every Bitcoin user or possessor will not just through it all away cause his angry, but the Devs can cause they have the codes and all what it takes to stop it or not to.

Well devs wont to any of that if there were no community members to at least patronize and circulate it. Devs would just be there to maintain any clots or issues that is happening through the phase of btc. Because for how many it has been there it helped a lot of people in its own ways. So i guess it is good to say that we can trust btc. There may time that it may fall but it is still the pioneer of cryptocurrency.

Bitcoin can be a store of value or a place where the hope of making money and life becomes easy.
If it is not destroyed it will be a place where man's trust is plastered but only if the good mind of those who developed it will let it go on...

I think it's faith and technology people are amazed on it's technology, finally, they've found something that's new in their eyes and can save them a lot of fee and from getting their account disable and limited just like what Paypal and Payza are doing to their clients.

I think you are absolutely correct, faith is one of the main reasons on which price of Bitcoin is decided. More people who believe in Bitcoin increase the demand of Bitcoin which leads to high prices and if people start to loose faith in it, price can fall and it can loose its value.

Technology is what's behind our modern advances today. For bitcoin to prosper, the technology and development must keep in step with each other. Of course faith in a certain crypto currency plays a big role, because once the actual users lose faith in it, it would eventually lose any sort of value it possesses. But also, human greed and fear play a role in the rise and fall of bitcoin, so it is more complicated than we think it is.

Sometimes it is good to have no owner or "government", controlling our every move. This is why Bitcoin has been successful so far. Bitcoin's future, however, does depend on the community and faith. We depend on our developers and miners to keep the cryptocurrency moving. If any one of these groups decides to leave Bitcoin, then the entire Bitcoin project would be dead. Bitcoin can be still considered as an asset, investment and a currency too. That is what makes Bitcoin unique. I think Bitcoin fits both categories. It is, both, a store of value and a medium where our trust is plastered on. These two aspects of Bitcoin complement each other and furthers the development of Bitcoin.

Well it is really true that bitcoin is based on peoples faith and trust. Even traditional currency was also based on that. If people does not trust a certain currency it may be cryptocurrency or fiat cash then they will not accept it and it will lose its value. What give value to a certain currency is the faith and trust of people patronizing it. If people accepts a certain currency it becomes valuable. It is the people who placed a value to any kind of currency and even to a commodity. Thus it is important for any currency to have the peoples faith, trust and support otherwise they will just become normal numbers or an ordinary paper with numbers. If you look back at the history of each currency you will discover and realize that a certain currency did become a currency out of peoples choice, acceptance and support.

Every single currency is built on trust. Fiat currency especially.

If everyone knew about how fiat currency is completely rubbish and that the government has basically control over anything that you do with the currency, then everyone will dump their cash for a store of value such as gold and silver, or even bitcoin.

The thing about decentrlized store of nvalues such as gold, silver and bitcoin is that you don't actually need to trust anyone with your wealth. You holdy our own private keys, and the government cannot influence inflation rates in bitcoin. It's all preset in the bitcoin code beforehand. Obviously, if people don't believe in bitcoin anymore(such as a fork going wrong), then bitcoin's going to drop in value, probably dramatically as well. But this isn't just applicable to bitcoin, it is applicable to any market based currencies. Either way, i don’t think that bitcoin will experience this sort of thing anytime soon. It is still very early stages, and mass adoption has not even happened.

If people lose faith in bitcoin, then obviously they are going to dump their coins. This will definitely be extremely bad for bitcoin, as when people dump their coins, they drive the price down.

Currently though, bitcoin is more trustworthy than any fiat currencies. Government intervention makes fiat currencies extremely untrustworthy. It basically means that governments are able to inflate the monetary supply whenever possible. Now, consider this: Would you rather trust a central entity, or trust the code that bitcoin network runs on? I'd probably trust the code that bitcoin runs on.

Bitcoin is like digital gold, there is a limited supply of it and it's immutable. As more people start using bitcoin, the more trustworthy bitcoin becomes. You're right, bitcoin relies on faith. But unlike fiat currencies, bitcoin community's faith in bitcoin grows as time goes on.

Obviously that's what will happen in my opinion because the reason why bitcoin is still holding forth is the faith people have in it and that faith keeps increasing day by day through various people and organizations coming to share in that faith. The same faith is what those people predicting the end of bitcoin are equally banking on that since bitcoin is not backed by gold or reserves or government, the faith will not hold for long then everything will come crashing. Let's keep the faith alive and continue spreading such as well.

It's a good question. I tend to agree that Bitcoin's value is based on faith. Faith in what you can do with it, faith that it's a disruptive technology, etc. If you think about it it's not that different from Google or Facebook. These companies provide a service, but is their current price really justified ?

Yeah the value of the bitcoin is indicate by the faith by the people. The people who willing invest their money to the bitcoin and enter to the world of crypto. The demand and the supply is the reason why the value of the bitcoin is changing.

This is hardly so (if not to say outright impossible)

Personally, you may of course think exactly that way (though I doubt that you would be quite honest). If we talk about major currencies like the US dollar, Swiss frank, Euro, British pound, there is very slim chance that the governments of these countries and unions go insane all of a sudden and choose to ditch their money. On the other hand, this is what Bitcoin miners (Jihan Wu and minions) may be looking for. Given that, I can't really see how Bitcoin can be more trustworthy that the currencies I mentioned. Let's remain realists

There is a certainty in knowing that if you own X amount of BTC, you will ALWAYS own X amount of BTC, given that you are holding them properly (in other words, holding your own private keys, well secured setup to not get them stolen and so on)

Now, you can't say the same with fiat currencies. You own Y amount of fiat in your bank, who is to say there isn't a bailout? or your country becoming a mess like Venezuela in the future?

With BTC, you know you always own the amount you own. No other currency can give you that peace of mind. And this is precisely why it will be increasingly more valuable.

I'm curious if you understand that absolutely the same can be said with respect to fiat money

Indeed, the US may become a mess like Venezuela one day in some distant future, but the chances of Bitcoin kicking the bucket are a lot higher than that, let's remain realists here. Further, if "you are holding them properly" (say, under the mattress), your monies will always remain Y amount of dollars, euro, etc. And I don't think that the coming chain split (or possible chain split) is anywhere close to giving you peace of mind. In short, your post is completely detached from reality

Yes, it is accurate that the invention of this currency has change economic sector and in near future this currency will be the backbone of every day life. The countries development will be judge by the use of bitcoin in domestic market and in think Brazil is on top because they have already started accepting bitcoin in their local shops. It is said that there are more than dozen shops who are accepting bitcoin from the customers for shopping.

On the other hand that change in BTC is difficult to implement, precisely because there needs to be consensus. Plenty of fiat currencies have been devalued on the decision of one man alone.

The asnwer to your question i quiet simple: If bitcoin would loss its users and the interest on using it would be gone then expect its would really die up and you have some point that its based on peoples faith since government cant possibly do it which means it really relies on its users when it comes on its value. Thinking off on this thing will really stressed you out and better to go with the flow while bitcoin is still hot.

The answer: both.

Bitcoin is a store of value and its lifeline depends on the trust of its users. With no central banks, the price of Bitcoin depends on the people hence with no demand then it will die. If there is a high price then the demand is also high also and not just the demand but the thing is that when people use Bitcoin or invest to Bitcoin it is because they trust it because if not then you will not use it in the first place.

And yes. When the trust be diminish or even worse be gone, that would be the end of Bitcoin.

For now, it is more of a exciting game than serious value storage.That makes it very interesting

I hope that the faith would not go down $2000 and would only increase since we could see more countries like Australia,India coming forward to legalize bitcoin following japan.Also,more new companies starting to accept bitcoin payments and mass adoption of bitcoin taking place all over the world.This would definitely increase the demand for bitcoin and hence the price.

For the people made rich by bitcoin, or living off bitcoin, it's very serious. If I had been an earlier adopter with thousands of BTC, I would have sold some of them at some high point in the past (maybe 300$ ?) to buy some real estate and have a guaranteed non BTC income, meaning BTC would have replaced my career.

In fact I still hope I can do that, in a longer timeframe.

You are right in the sense that if I claimed my money the governments have no backups to repay the gold against currency. But on other hands the trust on the traditional currency have the proof through wide acceptance. Bitcoin has its main obstacle which have to be overcome soon.

That's basically it. Bitcoin is trust-based. It was simply a bunch of people agreeing to put some value into something that is otherwise insignificant. That is bitcoin, the first among many cryptocurrencies, is established.

Not so unlike our fiat currency, eh? Our bills are just actually pieces of paper that have no value other than the one we agreed to assign, right?

The only difference is that the as regards our fiat currency we also developed a central regulating system to make sure its value will remain stable more or less in the course of time. Bitcoin, on the other hand, is founded on the contrary. Decentralization is the key. The value of bitcoin, therefore, as it is based on people's trust, soared ala-the flash!

However you really want to see it is exactly how it is. Peer to peer medium of exchange, store of value, medium where our trust is plastered on? All correct!
The fact is the value of bitcoin can only increase as the demand for it increases and the demand can only increase as trust from the users increases and is transferred to newbies. The fact that newbies are rushing in today is as a result of what they have seen bitcoin doing, thereby coming to believe that there is still a chance for them to be a part of it. If we all loose trust in bitcoin today and decided to shift to another cryptocurrency, what do you imagine would happen? THE END OF BITCOIN at least being valuable. Probably it would be competing with some crypto currencies down the chain. I started holding bitcoin few months back after few years of using it majorly as exchange because I believe in it's strength and value without panicking even when the price is falling. After all, everything we do is a risk believing something good comes out of it.

yeah, as long as we believe that bitcoin will have a great and wide future someday,then it will definitely happen, because of our belief we tend to make the community stronger. because of our beliefs, we tend to make a good foundation. and we will embrace bitcoin without doubts and fears.

This is the case in a way, but it's almost the same for stocks trading for example, with a free market and people are the ones who determine the value of each stock. A pure p2p valuing system is not common though and I think bitcoin and cryptocurrencies in general are the only active example of such system.

Yes exactly right bitcoin is giving opportunity to people and 100% trust. It is trusted currency that is why getting famous day by day and people investing in bitcoin because bitcoin is the oldest of the all crypto and the most trusted currency and also it has a great value and it will be maintain like this. So people will never change to another currencies.

From start of the human life financial systems are made of human faiths. In the barter system it was human faith that bringing his self produce commodities to the exchange market will be the need of someone else who’s commodities are my needs. So, without human faiths the currency system can never be even introduced.

That's right. Sometimes to get something that does not have to know much but just trust them. Yes, bitcoin grows as today is thanks to the user's trust in it, can bring them good or not.

Yes, your statement is very accurate, the value of a currency depends on the market demand, in other words, the government does not directly affect its value. The trust of people in a new currency is the decisive factor.

Since bitcoin is a digital currency. It's purely based on faith. Let consider God, God is purely based on your faith. No one saw him live.Some will say ,God is their. Some will say, God is not their. Like a god faith,bitcoin is purely based on faith.Many started to inverse their money in bitcoin ,due to their faith in bitcoin.

That is the main reaoson why I favour giving utility to bitcoins. As a mode of investment, bitcoin is only working on people's beliefs and its value is also determined by it. No one knows when due to 5-10% of market decrease, people stop buying bitcoins which further weaken market to 50%. Panic sellers keep selling bitcoin at half price and ultimately market hit 0.
Alternatively, we should start accepting bitcoin as mode of payment so indirectly it will be backed by the value of commodity which is being sold for it and gradually bitcoin will strengthen its base.

Basically, bitcoin is based on user activity due to their belief in the future, but developers also affect bitcoin by improving all its capabilities. Despite the fact that he is in the strongest case kept only by faith, he has won the trust of so many people.

Yes, this is very true. This is how bitcoin started out and will forever be.

The decentralised nature of Bitcoin is probably its most attractive value. As there is no main governing body, bitcoin can be based on none other than its users. However, still, this is what makes bitcoin great. Supply and demand: - The supply is made by the developers and miners and the demand is achieved by the users who use and invest in it. The beautiful thing about this 'faith' is that we have the power to control it - well, to a certain degree. The only way Bitcoin could collapse is if everyone suddenly abandoned it for another type of currency. Otherwise, our faith will get new users to join into the network and keep the flow going: increasing the supply and demand. Ultimately, this will result in an increase in the value of Bitcoin, something that will still increase (in my opinion).

How long this situation can continue? Bitcoin now bathed in the rays of his glory, and it may do a disservice. Faith in bitcoin is based on its fabulous price rises. As soon as faith starts to melt we will see a price drop and then bitcoin can turn into a bubble.

That's exactly what will happen but only IF the faith the people have starts dropping and that will only happen if what people holds to have that faith does not longer hold true which will include:

1 There is really no anonymity

2. Rather than news about proposed bitcoin adoption by countries filtering everywhere, we start hearing dumping

3. Several major exchanges starts closing down without trace

No one needs an announcement to be sure that the end is near but until then, the faith is strong

All is correct, only the market mechanism determines the price of bitcoin. And yes, you are right about the fact that when confidence in Bitcoin disappears, bitcoin will disappear!
About the current price - it is fair, because at this price there is a buyer and a seller. Overweight in the direction of buyers or sellers determines the direction of movement! With such a mechanism, at every moment of time the probability of upward movement is equal to the probability of downward movement and is equal to 50%
With such a market mechanism, any forecast is a guessing and nothing more! This explains the general fallacy of forecasts!
Another thing is the fundamental indicators affecting the demand and supply of bitcoin, with which you can evaluate the long-term trend (let's say the legalization of settlements in bitcoin in a certain country will lead to an increase in demand for bitcoins of the population and tourists - which means an upward trend)

I can relate though.

When I on the crossroad of buying my first bitcoin at Paxful, I was really thinking, "Will it be worth it?".
Pressed on buy, reflected on my balance and so it began my bitcoin journey and HODLing(Holding on for dear life).

Seeing the price now, I can say that It did pay off but I won't be cashing out any time sooner.
I do have faith in Bitcoins.

Indeed, one can say that bitcoin is largely based on people's belief. Without people who believed in him, bitcoin would not have reached such heights.

It is not easy to understand exactly what faith-based society means, because not many know how it works, because it's better to read and study it first rather than just understand it.