Bitcoin Forum

Theres something out of my mind triggered on asking why something that is not tangeable but valuable in the near end like Bitcoins, Ethereums and othet cryptocurrency? Is there anybody can explain about it.

Thank you so much 😄

In my opinion and because bitcoin technology has been a medium of exchange towards transaction and as a store of value. and my assumption is it should be stated that bitcoin's utility as a store of value is dependent on its utility as a medium of exchange, And because it is a store of value it needs to have a value, And if bitcoin doesn't achieve that specific utility of exchange then it can never have a value because it doesn't have a particular utility to be used, Or it gains legitimacy, larger scale investors, and more adoption, its volatility will decrease to the point that volatility is not a concern that would discourage adoption.

The fact you're posting this tells me that you're a materialistic person. To have value, it's not necessary that it should be sold in the market or have a physical appearance. It should just fulfil the needs of the people.
Love, the most important thing in the world, does not exists as a material. You can't buy, sell, throw, play or as a matter of fact, take it inside you. It still exists. Doesn't it?

That's a very crucial question. How on earth can bitcoin have a value which is not even tangible? That is the reason why conventional investors like Warren Buffet always spoke negatively about bitcoin. Because they failed to understand this very concept. Bitcoin is seen a bubble to many investors since its inception. So let me explain how an intangible thing can have a value and it can even grow stronger.

In our life, we all have known about a human value, Trust! We can't see trust, it is just a psychological/emotional quotient. But in our daily life, this particular psychological quotient plays a big role in our decision making. Lets take an example of general stores. There may be several general stores in your area, but most of the people have a preferred one. Because these people trust that particular general store owner will not cheat on the quality and quantity and will deliver your goods on the right time. You probably won't go to any other store unless there is an emergency or if the preferred one is not available. So you can see how trust is affecting your purchase decisions. Same thing is happening with bitcoin and crypto currency market as well.    

Crypto currency is backed up by public trust. Because people around the world believe that blockchain technology can bring huge change in our daily lives and as a pioneer of blockchain technology, bitcoin will become huge in near future. So they are ready to pay a price for that. This is how bitcoin is seeing a value far more superior than any other crypto currency. A thing that doesn't exist in real-world and represents just a number in your wallet, still have a value and people around the world are ready to buy it as per the market price. This is how bitcoin exists and thrives.

There are definitely other factors as well. But this is the basic factor on which bitcoin exists. Many see it as a bubble and they usually stay out of this market, but others see it as an asset so they buy as their pocket permits because they see it as a value representation/store of value. Hope this helps!

It has value because we give it value, digital or otherwise. That's how fiat works too though.

That might be true for other people, but for Warren Buffet specifically, I'd say he's more concerned about the fact that Bitcoin isn't backed by anything, unlike traditional investments. I mean, stocks aren't exactly tangible as well, and he obviously doesn't have a problem with those.

As for OP, again, stocks don't exist in the material world, and they're very valuable. Being tangible isn't a requirement to having value because value is a man made concept. Should man collectively consider literal shit to be valuable, it will be valuable.

I belief that there are certain aspects of reality that we encounter in our experience of the world that suggest that the physical world is not all there is.
This is pointing us to a reality beyond the physical world.
Everything that exist has an explanation of its existence , either in the necessity of its own nature or in an external cause.

Is love tangible? No. Then why it has value? Because people believe in it. As long as there is someone who believes in it, it will have a value. It also applies to tangible things like fiat. Governments make us believe that it has value but in fact it's just a piece of paper / metal.

How can ordinary paper have value? Anyway most of national currency is in virtual state today as well. We create value for those things in order to exchange value between us. Because as it goes in the old time trade was used cow for few chickens for instance. With a medium such as currency you can exchange what you want and whenever you want to as long as people are giving it value. Same applies for bitcoin why it is worth. Although it's price also comes from the fact that people are investing in order for them to get nice returns tomorrow. But you can use and receive your bitcoin for various things.

For me, because of how the system works can make the people's business become easier. That makes people think that the bitcoin and blockchain technology is useful. And from that usefulness, people give them value because they all believe in this system.

Digital assets exist for quite some time now, domain names have been a pretty large market since the beginning of the Internet, people who got the foresight and bought some highly desired domain names were able to sell them for a lot of money just a few years later.

Digital music, movies, books, games, software, the number on your bank account, there are lots of digital 'things' that have value, being tangible is not relevant in the digital age.

The fact that you can't see it, doesn't mean that it is does't exist.

Some $30,000,000,000,000 invested in Gold and Silver price up +35% this year is also public trust ??

A lot of people seem to really struggle with this. The best counter arguement I have heard is to simply look at Google, Facebook & Netflix. They have huge marketcaps, and are some of the largest stocks on the US stock exchange yet have next to no assets on their balancesheets. Because their value is their brand and value.

It was invented as a payment medium and there are other payment options so nothing would have happened. However, we would not have the opportunity to make decent money with investments.

If Bitcoin uses are failing why is the Bitcoin price 8 times more than Gold.

Because people giving value to it, the power of Bitcoin is lying in the users, Bitcoin got it's value because people demanding it and want to own part of it, the more people demand it the more valuable it become, owning Bitcoin is like owning stock it's not tangible yet all people accept it as a valuable thing

Actually, value is a non-tangible phenomenon, and is only attributable via psychology, and only psychology - a beef burger has value to a dog, but has none to a rock.
That same burger has no value, however, to a cow.

One can link intangible phenomena to material reality, but i challenge you to find an actual mathematical formula that links them together - you will find none.

But back to Blockchain, why don't we?

Blockchain has actual, intrinsic, inherent value, in that it is a very advanced, modern version of a ledger book.

1. Before writing, we depended on brain memory to remember the facts of something.

2. And then, we upgraded to consensus, where we agreed with each other as to what a certain fact was. (Is David an asshole? 10 out of 10 says yes - CONSENSUS achieved, via 10 individual memories.)

3. We then invented writing, and started recording, that David is an asshole.

4. We again, practiced consensus, via comparing written articles, if David is an asshole.

5. We then upgraded to Computers, and then the internet, and this is what made companies like Oracle so freaking rich - they allowed seamless consensus and checking via databases and the internet.

6. And Banks made Oracle rich. Cuz they're one of the heaviest users of databases.

7. (horrifyingly long explanation of what Banks and databases do, and what Blockchain is)

8. Finally came Blockchain, where we no longer had to trust a lopsided-parties' ledgers and records, and Bitcoin is only the first application built on Blockchain.

So does Bitcoin, on Blockchain, have inherent, intrinsic value? Yes it does. It keeps records, globally, instantly, very very well.

Does FIAT currency have that same value? Indeed it does, it keeps records globally WELL ENOUGH, but not nearly anywhere as well as Blockchain Cryptocurrency does, since it suffers from so many other problems such as inflation, counterfeiting, losses, etc etc etc.

It is about whether it is backed by something tangible or such that  ::) I think if bitcoin is used by lots of people around the world, then there will be demand for currency, even it has not instinct value, it has a price.

The main argument behind every religion. Since Christianity alone is gathering millions in donations every month so should other things like cryptocurrencies. It shouldn't come of a surprise that people are willing to invest in things they like and believe in.

Also, cryptocurrencies do exist, just like the data on your hard drive does exist, although you can't physically see it without other equipment that allows you to decode it and put it on a screen or on a piece of paper. That bunch of zeros and ones can be used to restore a piece of art or a text, you just need a printer to do it. It's the same with cryptocurrencies, they do exist and are usable, you just can't see and use them without additional equipment, like a computer, a smartphone, a hardware wallet.

How can money in banks have any value? We don't have enough bills to cover all the money that is stored on the bank accounts. Bitcoin is actually worth something because of many reasons. Bitcoin was the first cryptocurrency which allowed us to get rid of banks and other third parties which were needed for a transaction. Every person in the world can create their own BTC address without any formalities, we are not limited with any terms. Which one would you prefer to use? Bitcoin with limited supply and freedom or fiat with unknown supply and high control.

There's people who invest because they see the potential to get rich or because their friends invested, more demand like this increases the monetary value. On the other hand, there's people who invest because they believe in the purpose of btc and furthermore, they believe in the blockchain technology component behind it as the future platform for transparency in a wide variety of industries. In the end, in both scenarios, the user is the reason btc has value, regardless of his/her reason for investing.

The economy has gone digital. We all know that banks are the beginning of the digitalization of the economy. Someone deposits the money to be saved but they are only given a book containing numbers without knowing whether the form of numbers is real but we believe that the numbers contained in the book have value according to the money we deposited to be deposited in banks we trust . So even with crypto, the numbers we store in a crypto must have value because otherwise, people will not be interested in investing in a crypto.

I will start with an unusual comparison but that might get your stated to think that why bitcoin is having value anyway. Have you heard of the dark matter that exist in the whole universe? There is almost 90% of universe which is made with the dark matter but unfortunately we cant see it and neither we are able to feel it. But the whole universe runs on that magical thing. So you dont about it but carries huge shit of load and it gains value like that. Now I am not saying there is 90% bitcoin that exist in the economy but what I can confirm is bitcoin is having huge importance due to its various characters and the way it works. This is why it has popular and now it is gaining the value and I think its real value though we cant see the bitcoin.

i think this is because Trust dan Capital, we all believe in Bitcoin and Altcoin, believe that this will be great and help us in the future,
gold, house, and land is real but why we do not invest in it alone, the biggest reason is because capital,
gold, house and land must be capitalized after that we will feel the result, therefore we do not believe in gold, house, and land even though the object is real  :)