Bitcoin Forum

It is a simple yet not easy question to answer: why does bitcoin have value?

Bitcoin has value because it has both scarcity and utility. It is a limited and useful resource. It is important to note that something must be BOTH in order to command a market value, NOT either.

Bitcoin is limited to the software-imposed hard limit of 21,000,000 bitcoin units ever in circulation. It is useful because it allows payment information to be secured by a decentralized computing network backed by magnitudes of raw hashing power. That raw hashing power is energy (electricity) converted into digital utility. Each transaction must compete (fee market) to be included in the next block of transactions which has a limited [block space] due to the block size limit (2MB) imposed on each ~10 minute block.

We can expect both the value to increase and the number of users to increase exponentially so long as the current technology maintains itself and remains both useful and in a limited abundance.

Bitcoin will always retain market value so long as miner nodes are actively contributing their hashing power to secure the network (proof of work).

Courses:

• How To Fork Bitcoin [Tutorial] (https://diginomics.com/?p=9010)
• Ethereum Programming Course [Certification] (https://diginomics.com/?p=6838)
• Bitcoin Aptitude Test [Timed Examination] (https://diginomics.com/?p=9839)

Literature:

• The Bitcoin Revolution: An Internet Of Money (https://diginomics.com/?p=1632)
• Ethereum: The World Computer (https://diginomics.com/?p=5304)

Research Articles:
Why The Internet Of Things Will Be Built On Bitcoin (https://diginomics.com/2017/03/06/internet-of-things-will-be-built-on-bitcoin/)
Blockchain Is The New Corporation (https://diginomics.com/2016/12/17/blockchain-is-the-new-corporation/)
Money Is Now An Image (https://diginomics.com/2016/12/16/money-is-now-an-image/)
How The Ethereum Virtual Machine Could Run The World (https://diginomics.com/2016/03/07/ethereum-virtual-machine/)
Africa May Leapfrog Traditional Banking (https://diginomics.com/2016/01/22/africa-may-leapfrog-traditional-banking/)
Did John Nash Help Invent Bitcoin? (https://diginomics.com/2015/06/11/john-nash-help-invent-bitcoin/)
Bitcoin May Solve Triffin Dilemma (https://diginomics.com/2015/11/11/bitcoin-may-solve-triffin-dilemma/)
Bitcoin Introduces Digital Scarcity (https://diginomics.com/2016/01/14/bitcoin-introduces-digital-scarcity/)

Bitcoin 101:
Advantages & Disadvantages Of Bitcoin (https://diginomics.com/2013/02/07/advantages-and-disadvantages-of-bitcoin/)
How To Store Bitcoin Securely (https://diginomics.com/2013/03/05/how-to-store-bitcoin-securely/)
Who Is Satoshi Nakamoto? (https://diginomics.com/2013/01/09/who-is-satoshi-nakamoto/)
Don’t Let Anyone Tell You The Identity Of Satoshi Nakamoto Doesn’t Matter (https://diginomics.com/2015/12/10/identity-of-satoshi-nakamoto/)
Bitcoin Is Backed By Time Itself (https://diginomics.com/2015/06/01/bitcoin-is-backed-by-time-itself/)

Cashless Society:
Is Total Cashlessness Inevitable? (https://diginomics.com/2018/10/20/is-total-cashlessness-inevitable/)
The Growing E-Dollar Culture (https://diginomics.com/2018/09/17/growing-e-dollar-culture/)
E-Banking Squeezing Out Personal Banking (https://diginomics.com/2018/07/05/e-banking-squeezing-out-personal-banking/)

Social Media:
Twitter (https://www.twitter.com/diginomics)
Facebook (https://www.facebook.com/diginomics)
YouTube (https://www.youtube.com/channel/UCqWSZjB2D02mhzm8yxWlh4Q)

I think it has a value because people understand it, we can see how the engine was made and since it is a fair deal for all then people decide it has a value. The value is variable because is based on a market, but what we know is the value will never be zero.

The value will remain above zero as long as the network is still being secured by hash power (miners).

Moreover, unlike Fiat which is minted out of thin air as the Govt wishes, for mining BTC you need to spend resources (proof of work) thus making it more valuable.

I don't think so. I'm pretty sure that people who actually understand Bitcoin is only a small minority. All they need to know is that Bitcoin is decentralized, trust-less, unconfiscatable, and has a hard limit. I think knowing those characteristics alone will be enough for the typical non tech-savvy person to know that it's worth something.

Yes Bitcoin has value despite high fluctuation in price.
Users can transfer digital assets in quick time and complete privacy. Anyone can be owner of this cryptocurrency. You need not to complete KYC for having bitcoin wallet. Bitcoin transfer fee is very very cheap. Transaction takes place without any border. This is just the beginning of crypto era. There are lots of surprise waiting on the market. If other cryptocurrency wants to dominate the market then bitcoin will still be accepted to buy sell crypto.

Bitcoin needs fiat and fiat determines its value. Fiat acts as a fuel to Bitcoins value. Without fiat being pumped into Bitcoin it has no practical use or value. Considering other cryptocurrencies in the market Bitcoin does not perform well as payment processor. Without its Fiat value Bitcoin won't be accepted by any vendors online or offline.

Your analysis is bookish and does hold any practical stand.

You need to step out of the fiat bubble and enter the brave new world of digital cryptocurrencies.

Very valid scientific definition of bitcoin value system. what equally gives bitcoin value in a simplified language is that it requires a lot of work and complex mathematical computation to determine each next block before reward can be awarded to the miner who has the most complex block. In its utility, it has a huge advantage over fiat. It doesn't get decayed like the fiat, it can't be counterfeited, it takes less cost to keep and store unlike the traditional cash. One of the major breakthrough of the bitcoin value system is the total control it gives the owner of the coin, which is a proof-of-key. You are your own bank, no one helps you keep it and lend it out without you gaining  when in a non-custodian private wallet.

Says who? There is a merchant I buy from fairly regularly whom I (and several others) pay in bitcoin, who has told (and shown) me that he then uses that bitcoin to pay part of the salary of some of this staff members, and also to pay one of his suppliers. His employees which are paid partly in bitcoin are paid with a fixed amount of bitcoin, regardless of its fiat price. They earned relatively more in terms of fiat last June/July when the price was $13k, and they will earn relatively less currently in terms of fiat, but they always earned the same amount of bitcoin.

Bitcoin can function just fine without fiat. I earn a fixed amount of bitcoin from my signature and avatar, regardless of fiat price. I buy things from this merchant who pays his employees in a fixed amount of bitcoin, regardless of fiat price. There is no inherent need to convert to, or even think about, fiat when using bitcoin, unless you want to.

Bitcoin’s value derives from its current real uses, mainly for money transfers and remittances. it's limited supply, scarcity, store of value, and its many potential uses. If you buy for day trading you may lose money, but if you hold long term, it has been proven you get a nice ROI. And bitcoin has barely started, think of the Internet/email in the '90s. A decentralized technology that has a valuable use it's not going to disappear, even if a few tyrannical governments try to ban it.

Didn't watch the video but the reason is basic and valid and without the technical jargon the value of btc comes from us being ready to pay whatever price is there leading to demand and retaining it's value in the process.

Yeah, you are right. Bitcoin does have value because it is scarce and has utility. But, you forgot the main thing. Demand. Bitcoin and other crypto currencies have demand for which they also have a value. As long as there is a demand for bitcoin, there will be a price. With the demand rising the price also starts to rise. But, as the demand falls and goes to zero, the price will also eventually fall and then become valueless even though if it is scarce and has utility. Look at those coins that have failed. They now worth almost nothing since they don't have any demand.

The best answer about this can be given by a miner, the one who gives birth to new coins every single time a new block is found. The energy and electricity consumed by a mining machine is not less than what a mother collects inside her in order to push her baby out, just go and ask that mother what's the worth of that baby to her. She'll say, "Priceless". So, don't just look for a few aspects about BTC while considering it to have a value as it'll take years for you to understand what exactly is behind it that BTC has tethered all of us who never even knew each other during our lives.

I think the guy on the video had answered the wrong question. The title and topic was supposed to be about why Bitcoin has value but proceeded to answer why Bitcoin is valuable which is a different thing. He did mentioned it at around 0:21 of the video when he said that "in a nutshell Bitcoin is valuable because...." so the bottomline is he didn't even answer the question to his own topic. It is really obvious when he did proceed to stray away from talking about the economic side of Bitcoin and proceed to talk about the features and why it is "better" compared to fiat currencies.

More specifically, I see "utility" as network effect, or network value. Bitcoins can only have value if other people accept and value them. Many people use Metcalfe's law (https://en.wikipedia.org/wiki/Metcalfe%27s_law) as a model for Bitcoin's network effect and value.


Bitcoin adoption is a free market process. There is no guarantee of exponentially increasing adoption.

Majority of Bitcoin's value comes from speculation rather than fundamentals (scarcity and utility), we can see it by how much the price moves without any change in fundamentals at all. And it makes Bitcoin really unpredictable, it's almost impossible to make any educated guess for where the price is going, maybe we'll see $100,000 or maybe $100, maybe even both - who knows.


Why? People so often make these "moon" predictions without any proof that the growth will indeed be exponential. Drawing parallels with adoption of other technologies doesn't actually prove that Bitcoin will repeat their history.

By this logic, anything fiat 'related' could be considered the same thing as Bitcoin, "no value or practical use". Gold, bonds, mutual funds, etc.

Fiat are just a unit of exchange, in this case, the same as BTC when it was used in trading pairs. Remember that a guy buys pizza with bitcoin in the past when there's no 'fiat injected to pump it'.

At this moment, it's probably not possible to expect any valuation fully expressed on Bitcoin from merchants, but that does not mean it's impossible.

I will say, we are the one who giving value to bitcoin. Bitcoin  valuable because of its strong community. You know when bitcoin was created then it was zero value, it was just a code. When people realized the use of this codes and what would be the benefits of it then they become interested on this peer to peer decentralized electronic cash system called bitcoin blockchain. And that's how community start build up, in a result bitcoin become most valuable worldwide. So it will expand more day by day and it will not ended. That's why bitcoin value totally depends on its community.

Bitcoin fundamentals are not just scarcity and utility but the evolved technology, community and the network, as well a the established methods of this evolution. It is nearly impossible to duplicate this evolution of miner infrastructure, community support AND decentralized decision-making. The fact that bitcoin is here is here to stay.

The next fundamental that all the "business" people cry about is "utility on blockchain". This is where success of LN becomes all the more important. If the LN infrastructure gets going, it'll mean that the tech has matured to a level where a layer-2 utility can use the security of base layer. The use there-on is limited only by the acceptance of bitcoin's advantages by the people and developers. Instead of hating on each other, people can just accept bitcoin as it is and work with it instead of against it.

I agree with a statement that bitcoin has value because of its monetary properties.

Bitcoin has everything we require from money. The main thing is of course bitcoin's scarcity so we always certain that our money won't debase due to inflation. This was one of the main reasons why gold became such a good asset, it surpassed all other types of money.

Gold has credible monetary properties, but it is not for digital era, which in need of transactions via internet. Bitcoin solved that issue, because it has both credible monetary properties and digital nature. That is why it has value. It is merely best money.

Why bitcoin has value is not hard to answer. Not that it is like price that we don't know what could happen but because of what has happened before.
Bitcoin has value because:

1. It was the first digital curecies that uses blockchain technology
2. The bitcoin halving that make the price to rise in 2012 make people to see it asva way to invest.
3. Later, some people are holding it because of long term process for fiat foreign transactions.
4. More people are getting to know it and embrace it as well because they see it as a way to make money.

This is how bitcoin become more adopted and popular and this makes bitcoin to rise from zero value to something and to what it is today.

Bitcoin has value because miners have to buy equipments, pay for energy to mine it.
Bitcoin supply is limited at 21M, people invest in Bitcoin because it has many features that fiat don't has and they hope the price woud increase.

No, bitcoin value retains its usability and scarcity as you correctly point, even in the inevitable diminishing of hashrate once mining stops becoming profitable, which is a point we are approaching with every passing day.

This doesn't make the network weak, because there are less miners because it has become too expensive for the benefit, so its still to expensive to attack, even with less miners. There will ALWAYS be miners, just not so many since the for profit ones will be gone. This moment is not too far away, sure the current price is temporary, but letter even with higher bitcoin price, the mining activity won't be able to pay for itself anymore. So the last miners will be those hobbysts, enthusiasts or people that somehow have "free" electricity (ie. renewable sources).

If you were expecting significant profits from transaction fees, LN came to get rid of that. Everyone can just stick to 1 sat/B txs and maybe use LN for anything else. The only reason you sometimes see fees spikes, its because people still blind trust their wallets to pick the "best" transaction fee. This is NOT Bitcoin doing it, its your stupid wallet. So don't let it, set it up manually and don't bother for insta-payments unless you want to do LN or an emergency makes you use a higher fee.

In economy books, they tell you that "value" is decided by supply and demand together. That is a too abstract and flexible definition

I took a more scientific approach that using energy to measure the value of one object: One object has value, because of mainly 2 reasons:

1. It contains useful energy that can be burned (like food, electricity or petroleum)
2. It can reduce your energy loss (like cloth or house that protect you from excessive energy loss in cold weather,  or computer to reduce the physical paper work)

Since all living things burns energy through metabolism and other activities, anything that satisfy these two criteriea can be regarded as having demand from living things, thus have some value basis, no matter how large the supply is

This theory contradict with traditional economy books, but I have observed this theory is more close to reality in some cases: Even with almost unlimited supply of food, no one dares to say that food is of no value: Human has a tendency to value things based on its energy content

From this view, bitcoin does not contain useful energy that can be burned, so its value must come from the second demand, that it can reduce the energy loss

What kind of energy loss that is reduced by using bitcoin?
1. Energy loss due to inflation (fiat money can be regarded as a store of energy, but it is constantly losing energy content)
2. Energy loss due to friction in international value transfer (due to the high fee now, this only applies to countries that have capital control, for example if you want to get large amount of money out of China)
3. Energy loss due to inefficient and unstable financial infrastructure (confiscate your money, freeze your account, haircut etc...)

More can be added

well enough reason to say that Bitcoin really has a value mate,but remember that since this market is volatile the possibilities that price may fall is always there but also chance of going high is there because the 21 million bitcoin limit is now more even lower because of forgotten password /private keys that has Bitcoin inside their wallets and ledgers.so all in all there are many arguments but literally?yeah Bitcoin has a value.

I believe the people who truly/deeply understands Bitcoin is closer to zero, than the "small minority". The clueless includes me. Haha.

Ask what Bitcoin is to different people, and they will give you multiple different answers.

I think the reason beside having bitcoin considered as currency is that bitcoin offers a unique way of making transactions. They use blockchain technology for that. Plus it has a hard cap which makes it a product thus giving its value.

It is the same why does the fiat currency has value because today most of the people are using the fiat currency for making transaction and by the creator of the bitcoin he wants to make it more digital currency so all of the transactions today are we can do by the help of the internet world or the cyberspace now this is the most use transaction and they are now supported the conversion of fiat currency into cryptocurrency that you can convert your money into the digital world that you can now pay a lot of things through online without using physical money it has a value because it is the same like the fiat currency today.

It is not the same, you can see that in panic, everything is dumped for fiat currency, because fiat money is considered as a standard unit of value, thus its value never changes. Although this is just an illusion ironed in everybody's mind, but it works quite well and almost everyone has become the slave of it

Why does any currency has value? Whether it’s a fiat currency or crypto, it will be valuable as long as people buy and sell it, as long as it is interesting to them and they believe in and use it.

This is also a first mover advantage thing. People need something as a standard unit to measure value of anything, it used to be cattle, grain and gold, now fiat money has took that place. Once it took that place, its value become relatively stable automatically, since everything else's value is going to be counted by fiat money, this is pure psychological

Perhaps you could apply this to fungible commodities like electricity or petrol, to a degree.

How how non-fungible goods? For example, you have filet mignon and I have a can of beans. We both won't starve tonight, but surely you wouldn't be willing to trade yours for mine. That's the subjectivity of value, and why the idea of supply and demand is so crucial to determining it. If one food tastes better, has more nutritional value, has perceived superiority -- and is much scarcer -- then it must be more valuable.

Bitcoin has value because people trust it. They either trust it as a decentralized system that's transparent on numbers and transactions or they trust it as a solid investment option that's limited in supply. The value is not given by anyone but the users, people considered it as a buyable thing at $10K and considered a sellable thing at $5k just after a week. So, it's the market and sentiments that determine the value.

Bitcoin has value because arround the world people accepted this.they are dealing in bitcoins.when you have limited supplied in the day by day growing community price will go higher.I am sure about bitcoin price that as many people comes in this field price will go boom high. One day bitcoin price will be very big then anybody thinks.
So bitcoin is money of future,money of internet,money of new generation,money of smartness that why bitcoin have value.

To pit everything jn a nutshell, bitcoin has a certain value we regard of because we implied a value for it. We implied and calculated using the amount of technology used to create and support it along with the equipments and manners as to how bitcoin is obtained. We have trusted bitcoin's value and bitcoin's credibility that why even if it doesn't exist in the physical world, we are still able to respect it's value. If we hadn't regarded of bitcoin's value as something of significance then it would not have any monetary value, regardless if they used ultra-powered equipment to mine it.

In your example of beef vs bean, the beef's benefit falls into second category: It reduces your energy loss more than a can of bean do, it makes you feel fresh and have more nutrition, all makes you more energized. Of course that is also a personal thing, it would be opposite for vegetarian person, that feeling is subjective. So eventually the value will be decided by the production energy input: Beef takes much more energy to make, e.g. it contains more energy input, thus become more valuable

But if you take a supply and demand approach, then the price of beef and bean will be decided by who has more money: Meat eating person or vegetarian person. Then it get distorted

How do you quantify that, knowing that people can still survive off canned beans? If they can't afford steak, they'll buy beans. That's a function of demand, not a function of production inputs.


Yes, it's an oversimplified example, but your point only seems to reinforce that valuation is subjective -- based on supply and demand, not the cost of production.


Isn't that a more accurate description for value? It's the price that people actually pay.

If demand for meat falls, producers will follow suit and supply will fall until the market reaches a new equilibrium. It's just like gold -- when demand falls, so does price, which forces unprofitable mines out of business. This causes a decline in production.

I think Bitcoin has value because of its proven technology and narrative. It's mainly a Store of Value. It has a 21M supply cap, a small block size, minimal features. The technology is designed to be minimal to fulfill this narrative.

Bitcoin has minimal utility to be a Store of Value. It supports storing and transferring. If you believe or want Bitcoin to have more utility than that, you're going into Bitcoin maximalism. You'll go down the rabbit hole with people who think Bitcoin will eat all other currencies and assets.

I've written some posts on this.

https://bitflate.org/post/2020/03/17/bitcoin-is-a-store-of-value.html
https://bitflate.org/post/2019/11/24/bitcoin-will-not-be-a-medium-of-exchange.html

Yes, that's why using supply and demand model is too abstract and flexible, it does not give you any scientific measure about the value of the object.

If I'm a banker, and willing to pay 100 dollar for a can of bean, but only 10 dollar for the beef filet, that does not make the bean worth more than beef filet. You must also count the supply and demand of the money itself in the equation, but no economy book tell you that

So I think in this case, an objective measure will be the energy input (e.g. cost) required to make the food. Using energy as unit of account will make the valuation more objective, since no amount of fiat money printing can change the energy input of making a beef filet, thus its value (measured by energy content) is not affect by the supply and demand of fiat money

This is far too simplistic a way to look at things. There are plenty of very expensive things out there which do neither of things. Pretty much the entire entertainment industry (television, cinema, music, video games) neither contains useful energy nor reduces energy loss (in fact, they all use up energy and increase energy loss, without a tangible "benefit"). Drugs, including things such as alcohol and nicotine, also don't fit in to your definition, despite being the second largest market in the world. Luxury goods, sports cars, watches, jewelry, precious metals, the list goes on.

But the scientific measure of the value of an object is irrelevant if nobody is willing to pay that. Look at a sports car, for example. Thousands of dollars in design costs, in raw materials, in production and manufacturing costs, in testing, in labor, etc. which is reflected in its price. But then look at a Jackson Pollock painting - a few hundred dollars for a canvas and some paints, sells for over $100 million. The "scientific cost" means nothing.

Just look at what's going on at the moment. Toilet paper, with a production cost of maybe 30-40 cents per roll, is being sold for $30-40 dollars instead. Supply and demand is all that matters.

When there is a currency being invented and people using it more and more , it increase the value of that Currency after a long period of time.

With time when people realize it is worth something and can be used beneficially it does become more popular, the more people buy it , the more the value rises.

If there are 10 coins and 10 people want to buy it , 1 coin will go for 1 x

If there are 10 coins but this time 100 people , the value will increase substantially , I don't think the demand and supply rule is abstract.

It's like you are asking why do stocks or gold has a value ?

Bitcoins are not generated out of thin air without any external interference.

If you look at it closely, it always fall into two of the above categories. This is because, human as a living being, require constant energy input to maintain its activities throughout its life, so anything that contains usable energy or reduce the energy loss is of value to human

Entertainment for example, is used to reduce energy loss: Although they don't directly provide energy, but they reduce the inefficiencies inside your body, thus makes your mental status more healthy. You can compare with another case: The same energy input but pure loud noise through speakers, that will make you tired and lose energy quickly. A high level of mental status can come from reduced energy loss, which can be caused by drugs, drinks, luxury goods, holiday, etc...



True, supply and demand do affect the price of goods and services, but that can also be explained with energy theory

The paint art's value does not only decided by the original production energy input. When it is scarce, the energy input to acquire it in open market competition will become prohibitively high. It is the same for bitcoin, its value now increased mainly due to the increase of energy input in competition

It is similar for the toilet paper example. A demand surge in a short time increase the energy input for end consumer to get the goods because of competition, but in the long run it is the energy input in making of the product decide its base value, or cost. And that cost is not easily changed by supply and demand, thus relatively stable

It is intereting that in bitcoin's case, that the constant competition in mining makes the energy input higher and higher, so its value is purely driven by the competition, it does not have a base value, or the least amount of energy input to make the product.

And this explained the phenomenon that there are always people asking the question like "Why does bitcoin have value", since they just can not see that base value component in bitcoin, and they feel uncertain

What inefficiencies? You are suggesting that watching a moving somehow makes the human body more efficient at metabolizing glucose? Ok, what about a gym membership then? That doesn't help to reduce energy loss - in fact, the exact opposite. It promotes energy loss. Why is that valuable?

You are mistaking scarcity for demand. When there is demand for a product, its price increases. Scarcity alone is meaningless. There is only one pair of dirty socks I wore yesterday in the whole world. Only one! It would take a huge amount of energy for someone to track me down, break in to my house, fight me, and steal the only pair of my dirty socks in the whole world. None of this makes them valuable in any way.

If this were the case, that the price of an object was driven entirely by the amount of energy required to obtain said product, then the price of bitcoin would directly correlate with the hashrate.

Entrophy is always going to increase, that is the underlying inefficiency in the universe. You can fight this trend by input lots of energy. Human are complicated living being, since we have brain, and the brain coordinate all our behavior. Many of the human's behavior, seems like a waste of energy, but improve some efficiency. Going to gym for example, will make you much less likely to be sick and in hospital. That is a huge reduce of the potential energy loss. Of course brain can do missjudgement (like gambling), but generally it tries to make wise decisions based on your own energy requirement, that is also the basic assumption in modern economy. If human have a tendency to waste energy instead of getting energy or reduce energy loss, then the theory of modern economics will never work


Demand is the basic prerequisite, then scarcity decide the level of competition


I do hope so. Imagine that there is no exchange, the only way to get bitcoin is through mining, then mining cost will be a very good indicator of the bitcoin value. But unfortunately since most of the people are using fiat money to measure the value, and bitcoin is traded against fiat money, then bitcoin's value will be heavily affected by the supply and demand of fiat money

And the reason I want to use energy to measure value is trying to get rid of the affect of fiat money supply, that might increase its price stability a lot

So what about all the obese people in the world. It is a massive waste of energy to work extra hours to buy all that extra food, it is a huge waste of energy to do simple tasks while significantly overweight, and it is a huge increase in potential energy loss by suffering a heart attack or diabetes.

What is procrastination if not wasting energy? The majority of social media wastes time and impacts negatively on mental health. What a massive waste of energy, and yet a hugely valuable industry. Your analogy does not hold up.

But it won't. That's the point I'm making. It doesn't matter how much energy is used to create or build something. What matters is how much demand there is for that thing. I could create an altcoin which requires $10,000 of electricity to mine a single coin. That doesn't mean a coin is worth $10,000. If all I can sell a coin for is $1, then it's only worth $1, regardless of how much energy was used to create it.

The price of bitcoin is based on the supply and demand of the market, and not on the hashrate or the difficulty.

Bitcoin is like money in my thought, you can see the characteristic of money and you can compate them. One thing that I know bitcoin have a value it was because its unique, since the price of bitcoin based on supply and demand then if there is people who know the ins and out of it then they buy it and use them as the wish. This is why bitcoin price reach the price as of now. The people will not buy bitcoin if there is no an unique thing, and it will be like anither shitcoin other digital curreny that was created like the coin who has created by facebook.

You are giving an example to disaffirm the basis of mainstream economy theory: Rational person hypothesis. I don't think those people intentionally want to get fat. Of course there are some economists that deny the rational person hypothesis, but that will also mean the supply and demand curve will not work, since any irational banker would suddenly buy anything in the market and raise their price for magnitues, and crash it in the next minute

My theory does not diviate too much from the classical supply and demand theory but I just do not use fiat money to measure the supply and demand, but using energy instead, that is the fundamental difference. In fact fiat money is also exchangeable to energy, but the difference is that it is highly manipulative


Maybe you are only seeing the energy wasting part, which is a small part of whole picture. The overall result might still be plus on energy, otherwise the activity is not happening. You can just exchange energy to USD, if that fits your habit


You still want to sell the coin for USD, so USD is still your biggest religion, that is what I'm seeing, and all my theory is just to avoid this religion

The demand is not from the exchange, but from the people that need bitcoin, even there is no USD in this world. My point is that people should get rid of the habbit of using fiat money to measure value, otherwise they will not see the real demand but a demand that is manipulated on exchanges by whales that is full of fiat money, very speculative

Another example, now oil price crashed to less than 20USD a barrel, but the energy content remains unchanged. In my model, the value of one barrel of oil remains unchanged, while USD's value doubled. And if you use oil as a standard unit of value, then many things' value actually get pumped a little bit

Why? are you that lazy?

I hate TLDR people.

Too long to read/watch but not too long to comment?

I wish that it can achieve this economic independence but for now we're still far from it (depending on stocks, government policies, fiat prices, the Internet).

Op provided a pretty technical explanation. In a simpler perspective, I see quite a lot of psychological strategies that are implemented in bitcoin marketing. By utilizing a system that is different from conventional systems, bitcoin becomes controversial with a decentralized system, providing the freedom that has been restricted by third parties in the transaction process. This is attractive to some people who want freedom. On the other hand, the limited amount, the halving system, makes the BTC price development more unpredictable. Economically, the presence of interest will definitely lead to demand, right? that's what makes up the price of bitcoin.

It doesn't matter. You can't say energy is directly linked to value. A sirloin steak and a month of gym membership might both cost $20. They have the exact opposite effect on the person in question in terms of energy input and output, yet both have value. The energy required to create a product, or the energy the product provides or uses, are not directly correlated with its value.

I understand what your theory is. My point is that it doesn't hold up as I've explained above. There is no direct link between energy and value.

I would love to move towards more things being priced solely in bitcoin, but this does not require your energy theory to do so. 1 bitcoin = 1 bitcoin is all that is required.

The scarcity is base on demand, if there are no demand it cant be qualified scarce. I also think it is a global means of exchange with the internet, which provide a wide variety of traders and investors. The value is also in the portability and volatility. The scarcity and utility helps the volatility, volatility of bitcoin is so attractive to increase and keep millions traders

Animals never need gym, gym is a higher level demand that reduce the energy loss of human body: less sick, longer life. The biggest energy loss is desease or die

There is also no direct link between dollar and value, but people get used to it. So it will be the same, as long as people get used to it, energy will work the same as USD. If you adopt an energy coin that always equal to 1KWH to measure value, then things will be priced like 1 ENE, 100 ENE, etc...

Bitcoin is not a good unit to measure value, since its production cost rises too quick thus its value changes too fast. Energy on the other hand, is like Lbs, Foot or Second, it is very objective and stable. In some other theories, labor time like man hour had also been considered a good unit of value, but it is not very objective, since different people have diffrent ability

It doesn't sound right to me anyway. Bitcoin has value because people put it in it because people trade it at certain prices. I don't think it has an inherent value, perhaps just a bit of it that comes from what's needed to generate BTC (electricity, equipment, maintenance), but that's not how we measure the value of money these days anyway. You're talking about scarcity I'm sure there are many scarce things on the planet nobody cares about. As for utility, it's kind of dubious because you can't really do anything with Bitcoin apart from generating it and making transactions... I mean, in terms of utility something like animal skin which used to be money about a thousand years ago had way more utility. But in terms of being money Bitcoin is kind of useful, I agree with that.

Bitcoin is the same like the fiat currency because it is converted j to digital currency still it has the same process or method of payment but the difference is it is faster and secure than the traditional way of earnings and still we are looking forward to the more use of it because today still there are some people does not want to use it because they are doubting the use of it a there are a lot of people support the use of bitcoin to becomes more profitable and popular. Slowly but surely the bitcoin is gaining a lot of popularities today because it is more convenient than the traditional way.

It was just owning something that you don't really have since it is a digital currency and it was just portray by a numbers in your bitcoin wallet. The bitcoin have its value was just pretty simple, it was just depending it the supply and demand of bitcoin that is why it has its own value, but in real life their is no collateral or any assurance of this bitcoin that is going to prove that you have something unlike like for example in the stock market of a company somehow you have a part of the company that is yours. It is the opposite in bitcoin since you don't really have something meaning you could just lose your bitcoin at any moment since it could lost its value at any time.

It is simply because there are people who want to patronize it and that is why it has value. The demand is continue to grow over the years while its popularity is also increasing. There are also many uses of bitcoin and there are many people who became interested to it. I'm a bitcoin fan since 2017 and I use it in price appreciation and also in some utility uses like paying bills and buying load.

Bitcoin is simply the most popular of the existing coins and therefore it has such a huge demand and its value is greater than that of other coins. The point is not at all its uniqueness, namely, that her PR is a great labor-intensive event. This must be understood and taken into account.

Of course it's not scientific. No economic model is scientific -- there are too many variables to consider, none of which can be isolated and tested in an empirical way. It would be nice if we could fit things into scientific models like a labor theory or cost-based theory of value, but we can't. Market pricing simply is not predictable, which is why we just shrug and say "supply and demand."


Is that a valuable metric, if it doesn't line up with actual market prices?

This kind of attitude is what's going to get you in trouble, my friend. If you see Bitcoin as a get-rich-quick scheme, ask the many people who jumped headfirst since the end of 2017, putting their house and shirt off their back, going all-in on Bitcoin. Telling their friends and family the same.

Learn about it first. Put in what you can afford to lose. And use it as much as possible throughout. Only your using of it, and encouraging others to do the same, while believing in it, can help it get to the value it should be at.

Impossible to quantify. Let's take a car for example. How can anyone possibly calculate accurately the energy expenditure required to take that from design to being driven out the showroom? The energy output of the engineers who design it? What about the energy required for the computers they design it on? What about the raw materials of those computers? What about the machinery used to mine those raw materials? What is the lifespan of that computer, and so what percentage of the energy cost can be attributed to this car? Already we are in an unsolvable situation and we haven't even reached the drawing board yet.

The best we can do is a subjective estimate of the value of each individual component, process, material, person, etc., which is exactly what USD does. An objective measurement is impossible.

I think you might need to look at it as a currency. Dollar gain value, has utility and very scarce, which is an essential feature of money as legal tender. You might need to help yourself with this simple term to stop expecting and comparing the utility of animal skin to money. Animal skin can be consumed with no other form of exchange. Except for destruction of money it will continue to exchange for anything, this is the utility we are talking about, that is the main purpose of money. Money is scarce and not available to everyone that why some are poor and some are rich. Only a rich man can understand this concept and that why they are good managers of money, poor dont know money is scarce they just suffer from it. Dont get this complicated please

Yes you’re right about that, Bitcoins value comes from the utility and scarcity, but not when there are no people who are making use of it, so the community are like the core that’s pushing this thing. From the start Bitcoin was not worth anything as what it is now, but as time goes on and more and more people kept recognizing and adopting it, that’s when the value started to increase and it reached a high price.

Utility is part of it as it was what attracted people to be making use of it. I’m even looking forward to more adoption, though I do wonder how miners will make profit when all the coins are mined (well now is not the right time to think of that, since the time is still far).

What is market price if there is no fiat money like USD or EUR? And now FED has decided to print unlimited fiat money, what that market price reflect is the supply and demand of fiat money, not the actual goods. It is relatively easy to understand, if you don't do anything to a product, its value should be relatively stable over night, however, FED can change anything's market price by 50% over night, given their unlimited money supply ability

Those economy books that I read 20 years ago, I slowly realized that all those books are just like bible, just strengthen people's belief on fiat money, unconsiously. Since if you believe supply and demand theory, you will need a tangeble unit of account for value, then fiat money automatically fit into that slot and you get skrewed by supply and demand of fiat money forever

All the valuation is done by energy input or cost, in short term, fiat money can be used to estimate the value of each component, since they are inter-exchangeable to same amount of energy anytime. For example, if 1 USD can buy you 10 KWH on energy market yesterday, it will be roughly the same today

However, in the long run, and especially during some extreme situation like we are having now. The exchange rate is no longer stable. 40 USD can buy one barrel of oil weeks ago, and now 2 barrel of oil, maybe next week it can buy you only 1 barrel of oil again due to unlimited QE started

Let's take another example, suppose that 1 million Zimbabwe dollar can buy you one barrel of oil yesterday, and now it can buy you 2 barrel of oil today, is it Zimbabwe dollar value doubled or the oil value decreased? Most possibly you will consider Zimbabwe dollar value increased: If you don't have any idea about fiat money's value, then energy would be a much more objective measure of value

Value is driven by supply and demand, but price is driven by supply and demand of fiat money

Just saw this news that reflected how absurd today's fiat money system is:
https://www.commondreams.org/news/2020/03/21/two-1-trillion-coins-rashida-tlaib-proposal-calls-us-treasury-fund-coronavirus

That's my point. It is utterly impossible to accurately and objectively place a value on something in terms of its energy cost, which means the value has to be a subjective estimate, which means it is no different to using fiat at present.

But again, not all KWhs are the same. 10 KWh of energy as grid electricity, as batteries, as hydrogen fuel cells, as oil, as gas, as petroleum, all have vastly different values, never mind trying to compare things like potential energy to chemical energy. Any system will have to be subjective, which is exactly what fiat does.

You don't have to tell me how ridiculous the fiat system is, but the system you are proposing doesn't fix it.

It's not so much that I believe in supply and demand theory. It's that we don't have an objective measure for value.

It's a factual observation that people socially decide on a unit of account for value. Currently, fiat money fits that role. If inflation of the money supply is too extreme, and high enough price inflation or hyperinflation results, people will drop fiat money for something that more reliably holds value.

If price inflation stays low enough, then people will ignore the problem. It reminds me of the boiling frog analogy (https://en.wikipedia.org/wiki/Boiling_frog). People will continue believing in fiat money until something drastic happens.

Or maybe Satoshi made it with the thought of having value!

As you described in your post regarding its networking ability and transferring of data (well digital payment info) it means people are actually buying these assets for real with fiat on one end and converting them into cryptographic form on the blockchain.

This is it I guess, it's simplest explanation for it.

~HOWEVER~

I do have another thought, you guys might wanna comment on the same.

Well over the period we have overlooked bitcoin as real payment system. Rather, we have looked at it as way of earning money, trading asset, or method to store our assets.

May be this has caused crypto world to turn into investment center. Now, that investment which is made over the time has given it tremendous value (demand and supply) and thus we experience the change in it everyday.

At current cost, in order to have a billion dollars in bitcoins, you need to have almost 154,000 BTC. I strongly doubt that there are many people who possess such amounts. I would venture to suggest that there are no more than 5, well, maybe even 10, but no more.

It's a very big difference that you use something that can not be created out of thin air at will. Gold, petroleum, energy, they are all much more objective, and energy being the most precise one

If you insist on using fiat, then why using USD instead of Zimbabwe dollar? IMO, it is just US banks are much better at manipulate KPI, so that anything in KPI does not get their USD injection

That is why I promote to move away from using fiat money as an objective measure of value. In old time people use gold, but I think in modern time people can use KWH.

A good example is bitcoin, you could judge its value buy the power used to mine it. The power used to produce those ASIC chips might be bit difficult to calculate, but for majority of the chips that is no longer profitable, the power is converted directly to coins. There is a reason that people prefer to exchange energy to bitcoin, since that does not need KYC, you get original coin without tx history, and the energy can be from anywhere. In this case energy has worked more like a world wide fiat money

Energy is the least precise one. A kilogram of gold is worth more or less the same regardless of where it is, or if it is flat or brick shaped, or if it is stored as 10x 100g bars. Conversely, a KWh of energy stored in a hydrogen fuel cell is worth a vastly different amount to a KWh of energy stored in broccoli. They are not comparable.

You keep repeating this but it simply isn't true. If it were true, then price would follow the difficulty or the hashrate, which it doesn't. When bitcoin was $20k, the hashrate was 15 EH/s. When bitcoin fell 85% to $3k, the hashrate more than doubled to 40 EH/s. More energy was being used to generate less valuable bitcoin.

The community adds value to the currency like BTC. Besides BTC is in the market where we all contributes as to how much bitcoin's value is when we participate in bidding. The intrinsic value of a coin is base on the market.  But what makes BTC better than those coins that also needs resources for mining is that BTC is accepted by huge pool of companies and merchants making it easy to liquidate.

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.  ;D

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.  ;D
Somehow I understand the basics so I will stick with that and just update myself whenever something new pops out.

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 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.

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.

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

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

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.

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 ;D

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.

'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.

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 ;D

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.

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.

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 ;D

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.

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.

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.

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 ;D

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.

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.

It has been discussed a lot of times, but you're still right about that, having scarcity and utility gives it value. Another thing that matters a lot is the demand, because if there is no demand for it, then it's going to fail. Imagine having supply but there is no demand, lol, the product will be as good as dead.

So, it's very important that there be a demand, and as long as the demand keeps on increasing the price will as well be increasing. And the reason scarcity is important, after the halving we are going to see a reduction to supply and the demand will be higher than the supply, which will lead to a very high price

I think a lot of people used to fail this and I don't know why. You are right though. The way it was explained on the Bitcoin blog is that the value of bitcoin is backed by mathematics, and is all about the trust we have in it. So, that's the utility you have mentioned. If we as the people do not trust it and we decide to drop or from investing in it, then bitcoin is going to fail. So, we the community are the ones that are creating the value and backing Bitcoin. Some people usually get this wrong at times.

In other words, when someone is ready to give something a price then it will get that value. When someone will be ready to buy by convincing the seller? Only when the buyer is confident about selling it again for profits. This is what happening exactly with all commodities and with bitcoin as well.

Why bitcoin has value. Decentralized and independent ...
 - It means that no governments, institutions or banks exercise power over him. They do not affect its emission, i.e. they cannot be "printed". The structure of botcoin has no one above him who would have a direct impact on its value. Easily accessible
- You have access to it wherever the Internet is. You do not need to log in to an external website. All you need is an application installed on your computer or smartphone. It's easy to replace
- You can do it on cryptocurrency exchanges, through an exchange office or directly at an ATM. Exchange for FIAT currencies is quick and immediate. Global and universal
- It is available all over the world under the same name and anyone who is able to invest in it can become its user. Anyone can check their source code and contribute to its improvement. Useful
- You can pay with it. Currently, more and more retail or service outlets accept payment in this currency. You can also have it as an investment asset. Easily transferable
- You can quickly send it from one place to another (make a transfer) without intermediaries such as banks. Thanks to this, the commissions are microscopic and without additional fees. Safe
- It's hard to fake it, because bitcoin is a combination of complicated mathematics and cryptography.

I think that's enough, right :)?

Bitcoin really obtains their value from the fact that there is limited supply, heightened demand, and utility (for investments or transaction purposes).

Unlike major currencies around the world where the central banks have in place a form of monetary policy to control the supply of currency in circulation, bitcoin and blockchain is wholly dependent on a decentralised network whose performance is totally reliant on market forces.

Also, given the increasing acceptance of such digital assets in societies, this legitmises the coin as having intrinsic value (currency only has this as it is legal tender aka the government putting their chop/backing on the currency).

There are governments around the world who are afraid of this and accuse cryptocurrencies as a way to launder money, for illicit activities, etc. But their main concern centers heavily on tax-evasion - our government earns its keeps via taxes (more often than not).

So hold on to your bitcoins if you have any, and watch it go up up up!

Hope this helps!

 

Obviously bitcoin have value because everyone accept bitcoin.they are big business in bitcoins.when you take restricted complete in the day by day rising identity value will take off higher.I am positively about bitcoin consequences that as numerous intimates comes in this grassland fee will turn boom high. One day bitcoin value will be extremely massive at that moment a person thinks.
So bitcoin is riches of future,money of internet,money of new generation,money of elegance that why bitcoin experience value.

Anything with value means it has a level of demand for mankind. Whatever is of demand has an important role to play in the wake of life. Bitcoin is a classical example because it solves a revolutionary payment system. Unlike the old payment method with paper money, Bitcoin offers anonymous transactions which helps users to purchase or send funds across borders without limitation.

Bitcoin has value because bitcoin can also do what money can do. It can use as a form of payment where people find it useful in terms of buying or selling. Its value can be determined depends on how many people are willing to accept it as payment, the more people adopt it, the more its value will increase.

Not only that, but bitcoin can also solve fiat shortages related to the limited number of transactions and its ease without limitation of area and time. The decentralized system also attracted the interest of most people who wanted "freedom" and "transparency". The existence of market interest determines value. The rest, many people are still doubtful because it is full of pros and cons, trust-less. On the other hand, the offerings of technological advances are very promising, so this is a good niche to explore.

Well, I really cannot deny that the value of bitcoin is created by its features and usefulness, it offers a new form of investment and currency, and so it deserves a certain value but perhaps, we as users use bitcoin to invest, we want more, hopefully bitcoin will grow faster in value, instead of forcing bitcoin to stay within a value limit, we automatically generate the value we want. It has been a successful thing so far, the price of bitcoin increased rapidly and without any barriers, the government did not participate in the process, that's one thing that makes bitcoin's high value

Bitcoin are not widely accepted (e.g. at service and commercial outlets) or legal means of payment. They are not issued and guaranteed by state central banks. This means that business entities or individuals are not obliged to accept payments in this type of currencies, even if they have previously accepted them. For some time it has been laughing and as he wrote Zeke_23 Bitcoin begins to take over the role of money and it is power ...

I'm partially agree on this, yes bitcoin was created using electricity maybe that counts as a intrinsic property that might define that bitcoin has a intrinsic value, however unlike any other asset like land, gold, diamond their intrinsic value is determined from sizes, metal property, and economic costs. In plain picture, bitcoin has a value because we are putting value in it (money) we are storing a value in it.

As long as Bitcoin provides use cases for the mainstream world, people will either value it as "digital gold" or "digital money". While most people assume that Bitcoin is "made out of thin air", that's not really the case. Miners use real world resources (like energy and physical hardware) in order to "mint" new Bitcoin. The fact that the pioneer cryptocurrency has a deflationary model, tells us that it should become more valuable over time.

I believe that the true value of Bitcoin consists in its decentralized and censorship-resistant qualities than anything else. Take those away from it, and you'll get nothing more than a worthless coin. What matters is Bitcoin's usefulness as a decentralized alternative to existing Fiat. People can use Bitcoin as an "exit route" in case the world's monetary system collapses in its entirety. With developers working hard day and night to make Bitcoin stronger than ever, nothing can go wrong. Remember, anything can have value as long a people believe it that way. It's more of a psychological matter than anything else. Just my opinion :)

Everything will have a value but it is depend on the community itself. Before money launched the human used a barter system instead of money even in some place use the stone as mean of payment because they are thinking that the stone have a value. This is same with bitcoin, the people look bitcoin have a value because its system which similar with money moreover with the need of digital currency that need by most people then bitcoin is deserve to be called as mean of payment.

To make it simple, bitcoin has value because people can use it to buying or exchanging goods. It is a digital currency that we can use and we value as a means of payment, we can buy things that we need in life and it is also convertible to fiat that's why it has a value.

Bitcoin adoption is a free market process. There is no guarantee of exponentially increasing adoption.

To make it more simple, bitcoin has a value because bitcoin is used to store a  value basically it tackles the demand and supply law that determine its value in timely manner. If you guys are wondering why the price of  bitcoin is incredibly high it is because the mass is using it as a form of investment rather than a digital currency, you'll barely see people using bitcoin to buy goods these days not unlike the time that we have back then where bitcoin worth just a couple of bucks.

Bitcoins have value because they are useful as a form of crypto market. Bitcoin on a large scale as a suitable choice of exchange, Bitcoin will enjoy a rise in value. As with all currency, bitcoin value comes only and directly from people willing to accept them as payment. Bitcoin offers an efficient means of transferring money over the internet and is controlled by a decentralized network with a transparent set of rules, thus presenting an alternative to central bank-controlled fiat money. In the case of Bitcoin, this can be measured by its growing base of users, merchants, and startups. As with all currency, bitcoin's value comes only and directly from people willing to accept them as payment.

Undoubtedly, for me, bitcoin is of great importance and I see it as a certain value, but I also fully agree with Your opinion. Without a community and interested users in bitcoin, its value will be equal to 0.

The price of any thing depends on its needs. When Bitcoin was created, it didn't have much value in the beginning. Gradually, as its use increased, so did its demand and value. Bitcoin is associated with other cryptocurrencies. There is a demand for Bitcoin and other cryptocurrencies; For which they have value. Bitcoin is currently being used extensively as a reliable exchange medium for wealth saving purposes. Hopefully in the future the use and demand of Bitcoin will increase further and its value will also increase further.

I am fed up with people always reposting this topic and trying to twist it in their own ways. Like who doesn't know that bitcoin's value comes from the trust we have in it? The community are the ones that keeps it running. We create the value for bitcoin like how we create value for gold. No big differences. I buy bitcoins with the intention of finding another buyer who will be ready to pay the price higher than I paid. Exactly the same way, this world is working.

Well, just imagine that Satoshi Nakamoto created Bitcoin and no one asked about it not to talk of investing their money in it, then do you think that it would grow to this extent? No it wouldn't man. So, this is topic is really simple and let's stop twisting and prolonging everything, please.

Yes, bitcoin has value because people believe in bitcoin. The limited supply of 21M bitcoin can also be a supporting factor that bitcoin will have value for a long time. In addition, bitcoin has been used as a profitable investment asset only because of price fluctuations that continue to occur. Some people consider it a place to store values ​​"it is not recommended to maintain values" such as gold and silver.

The adoption of bitcoin as a financial innovation also plays an important role in its value, its innovation as a decentralized payment system has made people believe in bitcoin. Although bitcoin still has problems with scalability, people still believe and it is proven that bitcoin is the most adopted asset in terms of usage, value and market capitalization.

In my opinion, even without reading or listening the technicalities of bitcoin and how it is made or how it is distributed, basically it all boils down to one thing - demand. Bitcoin has shown through the years that there are good things that you can get out of it. The more good you can get from Bitcoin, the more people will trust bitcoin and people will do more to make sure they will get more and use it. Demand is what gives things value.

Very true. That was the dream of Satoshi. Now, there are Bitcoin ATMs in African countries like Nigeria, South Africa, Ghana. Other ecommerce and shops also accept BTC as form of payment. With all these accomplished, Bitcoin will certainly have value. The adoption rate is organic and that is a good thing for the industry now.

The topic has a multitude of answers, but I have never seen someone say, or mention "censorship-resistance" as to the "why" Bitcoin is value.

Newbies, the reason why the Core developers have made design-decisions to keep the blocks small, is to keep the network decentralized, to maintain the network's main value proposition, censorship-resistance.

In my own opinion, I will say Bitcoin have value because it is TRUSTED; this is because no one can use what he doesn't trust, that means value comes from trust. Also, extending this idea to some coins, one will understand that most coins which are not trusted probably because of their team or their use case, struggles to grow. But in the case of Bitcoin, people are comfortable holding it, trading it and so on because it has proven its worth. Another reason is because of its utility, that is, Bitcoin is solving a world problem, and by solving the problems attracts more value.

Hello everybody. There have already been written a lot of correct and dubious things about Bitcoin. I want to share about my first meeting with Bitcoin, which personally inspired me to engage in cryptocurrency. Perhaps many will recognize this in themselves. For a long time I did not want to get involved with various payment systems - the constant fear that I would urgently need money, but I could not quickly get my dollars back - constantly confused me. At first, I did not even attach importance to the fabulous rise in the price of bitcoin, - I thought that $ 1,200 was the limit. But it is the very name "bitcoin" that attracted my attention. I decided to just experiment, - I brought a small amount of dollars to the exchange, bought bitcoin, then, after a while I sold it with profit and quickly withdrew all the money to my credit card. I want to say precisely these simple things are valuable to the layman. The speed of cryptocurrency turnover, the ability to buy and sell bitcoin from anywhere in the world (now even in the most distant point of the world there is the Internet and the ability to spend your money on a credit card). Well, the fact that Bitcoin has both supply and demand on all exchanges is the main reason that this asset should be trusted.

Moreover, it isn't enough for us to convince everyone in order to advertise bitcoin to them. Some people are relying already to credit cards and digital payments, wherein they can pay easily through their cards but not knowing that it is vulnerable too. (I do not except cryptos to be vulnerable, as it is as well, but I consider crypto as more secured). In addition, we have a very good asset to market them through explaining the perks such as crypto as investment tool. But I can see that it doesn't get well as in my experience, after I stated the word "investment" to my friend, his response was somehow related to crypto as scam. And IMO, this is the perception we first need to change in order for people to really value Bitcoin.

Exactly. There are so many people who support Bitcoin no matter what. Besides that, Bitcoin is the first cryptocurrency ever created which focuses on decentralization/censorship-resistance. No other crypto compares to Bitcoin when it comes to achieving unparalleled security and reliability against third-parties. That's what makes Bitcoin truly valuable from the rest of the "pack". Additionally, Bitcoin's extremely limited supply contributes towards higher prices on the market. As long as there is a vibrant community of developers and average individuals alike, the pioneer cryptocurrency will always be a valuable safe-haven asset for those who need it the most.

Remember, Bitcoin is similar to Gold because of its organized structure (decentralized) and limited supply on the market. Other altcoins may simply become worthless over time due to the lack of real use cases and adoption in the mainstream world. As long as Bitcoin sticks to decentralization principles, people will consider it to be a valuable currency for day-to-day transactions. Just my thoughts ;D

I don't think Bitcoin is valuable because it is widely known? What about the days where people don't know Bitcoin and only few knows it? what value did they saw to mine Bitcoin? you see, it's not Bitcoins popularity but utility and it's technology that brings people to use it. Without it's semi-anonymous feature and its decentralization, then people wouldn't even bat an eye.

May be you should scratch that "scarcity" clause. I don't believe it's because Bitcoin has a little fixed total supply of 21million that gave it its price value. Nah! That isn't true. We have coins and tokens less than a million in total supply, yet their prices aren't even half of what Bitcoin price is. However, I agree with "utility" and use case of Bitcoin being a boost to its price. Need I add that what has helped Bitcoin this far is its status as the "Pathfinder" of this industry? Pathfinders always enjoy a sort of privilege 🤔

Nope look when there are less people know about bitcoin can you compare the price from there to these days?
Look how cheap bitcoin from that time because there are less demands and only few people uses this.
And now there are million people here that supports and uses bitcoin(this is just my estimate lol) imagine how Huge we go in price growth?
this means one thing that popularity is part of the increase from price.

I will just go with that utility. Anything can have value as long as we trust and make use of it. There were times people were making use of some fine stones as money and the reason is because they believed in it. And I believe if you're giving one of those stones today as payment you will not accept it.

I think that's the case with Bitcoin; we see it as money and we are utilizing it and that's why it's working out for us. If the community stops believing that it is money, then that's the end of it. Assuming in the beginning when Satoshi created Bitcoin people never believed in it, then it wouldn't have been here today. We all accepted it. But for gaining popularity and to increase the adoption, I guess bitcoin is temporarily having that investment feature. Once bitcoin achieve a stable prices then people will start using it as a money without any secondary thoughts about saving it 8).

When we do talk about popularity then it would definitely talks about demand because if its unknown to the community then it wont really
get that attention.A thing that do gain value is that into something that has demand and this is where bitcoin head on.Sadly that i havent
considered this one when it was just starting wayback when im still at college where it doesnt even have that value or you can freely mine
but i totally ignore this one which really a regretful thing but its never too late to engage though because we know that this one will
still fly in the future.

Bitcoins have value because they are useful as a form of money. Bitcoin's value comes only and directly from people willing to accept them as payment. In addition, Bitcoin is both a decentralised currency, meaning anyone can participate in minting, and its peer-to-peer, so there are no third parties involved as you can run a full node and validate your own transactions as well. It’s the currency of the internet, free from jurisdiction and government-imposed law.

Utility is what gives Bitcoin value above anything else. If people don't find an asset to be useful in their daily lives, they'll simply consider it to be invaluable. There's more to Bitcoin than meets the eye. Aside from its utility, Bitcoin is a decentralized and censorship-resistant cryptocurrency with a very limited supply. Every 4 years, there's a reduction in the number of Bitcoins produced by miners. This, alongside, demand from everyday people within mainstream markets, allows Bitcoin to be an extremely valuable cryptocurrency. While naysayers often criticize Bitcoin by being "made out of thin air", we all know that's not the case. The world is still unaware of the benefits Bitcoin provides, largely because of the negative reaction from mainstream media. Once people get to recognize the true power of Bitcoin, you could expect it to be a lot more valuable than what it is right now.

Ultimately, people are the ones who decide Bitcoin's price on the market. As with anything, Bitcoin's value is determined by psychology. If people believe Bitcoin to be valuable, it'll be that way for the foreseeable future. Otherwise, it'll be worth nothing. What makes Bitcoin truly unique among other cryptocurrencies on the market, is its vibrant community of developers, and individuals alike. It's always active in development, and innovation, providing real use cases for the mainstream world. Being the most secure cryptocurrency to-date, it'll maintain its value for a very long time. Just my opinion :)

It is strange for me to hear that bitcoin has value and scarcity. This fully, but in varying degrees, applies to any fiat currency. However, the main reason for scarcity and value is the possibility of a useful exchange, that is, an exchange for goods and services. This function is wholly owned and is in the hands of the bank. In other words, this bank determines how much bitcoin can participate in the real economy. And that’s right if you don’t want chaos. Well, if you want chaos, you are an inadequate person. That, in fact, is all.

Bitcoin is valuable because it backed big crypto community. We give value to bitcoins. Value depend on demand and uses. If people want to down bitcoins it will go down for sure. Value is depend on how people thinking it's value.

You are right, I agree with you. Value depends on how people think it is value. However, the exclusively speculative value and the value of a useful exchange are completely different things. And in order for Bitcoin to have the value of a useful exchange, you need to have a very wide payment practice. The widespread practice of payments is a privilege of the government and supranational regulators of the global economy. That's all.

All these long stories are quite unnecessary, you should have just gone straight to the point of what you’re trying to say, which is utility. It’s all about trust, and people make use of what they trust. When people trust something, they invest in it without fear because they believe in it. By them investing and making use of it (utility) it will start to have value. The community is what’s holding Bitcoin , if people should stop believing and investing in it, it will fall to zero.

I understand that you mean that a miner (the possible first level seller of bitcoin) will sell bitcoins only for cash; from this you mean that how much bitcoin in circulation or participating in real economy is based on bank? I guess people may sell bitcoins NOT only for cash but also services. It means number of bitcoins which are participating in the real economy does not need to be depending on bank. I mean people get bitcoins by paying cash and by working for bitcoins as well.

Hi guys don’t really know if I am posting in the right place for this but was recommended to come on forums like this to sell my betting accounts I don’t use them but I have a few fully verified accounts and I know there is a few people wanting an account I also have a pokerstars account you can have and several others if your interested please email me and we can discuss it further if you tell me exactly what you are after, johnmorris0130328@yahoo.com sorry if I’m breaking any rules I have no idea about site rules and such I’m just trying to get my product out there.

Dear wozzek23, I would like the following to be understood: the practice of widespread trade exchange is the only thing that is eternal. And this is what defines the essence of any payment symbol. All derivatives and technologies, all these futures and so on, they are finite. The existence of states sometimes has big surprises, and what could not have been supposed 3-5 years ago suddenly becomes a reality. The same applies to the economic structure of the civilization of the planet.
I do not just believe, I understand that the future is an emission-free economy, in which there will be no derivative financial instruments, and no surplus value from the air. But for this, the world must become truly united.
It should be understood that bank interest and derivative financial instruments are not only a means of making profit and enrichment. This is a powerful catalyst for scientific and technological progress. It works like this: you are a businessman, you took a loan to start a business. To pay off your debts, you must control your business so that it constantly strives to be better than your competitors.
So, our conditional futures and bank interest is a catalyst. But, when you rush to the airport, and you see 200 km / h on the device, you know that you will slow down as soon as you arrive, and get out of the car to transfer to the airliner. And when you take off, you will be supported in a quiet flight by physical laws that are important for the car too, but not intended for flight.
Why Libra or TON with so many followers can bring trouble for a relatively stable transition to a new economic model? But because they embody an emission-free model too early. For now, emissions are needed and important for stability. It is clear that this has a limit, but the basis for such a transition should be ready.
Why is bitcoin not dangerous in the same role? Because it cannot become the basis and base of premature broad payments.
But Bitcoin may have additional features. About which no one is talking yet, and most people simply do not think.

To my opinion the answer is very simple, people are willing to pay to get the Bitcoin. So, Bitcoin has the value and defined specific price according to the demand and supply ratio at the market. As long as there are users who pays for Bitcoin, trade with it and use it as a payment method Bitcoin will have the value, just like any other currency, asset or anything else that is valuable.

It all comes down to one thing: Trust. - When Nixon got rid of the Gold standard the backup value of the USD got taken away as well. Since then, the Dollar is just as much as every other currency on the planet only valuable because of the trust in it. You can trust your local backery that you get goods with the value of 10.- if you pay 10.- The trust in the Dollar got damaged by the debt economy and its effects on the US market, now losing its hegemonial status to China again. 1.5B people "trust" the Yuan, but it is again just a currency based on trust.
The main difference between the trust to fiat and Bitcoin is that BTC also represents hope, liberty, privacy and a new way of doing things. It´s somehow an exciting new toy for mankind

The reason why bitcoin have value it is because bitcoin can be mined and have limited supply. Bitcoin block is limited and it also experience halving that makes it in demand in the market, especially that as time goes by, many people are using bitcoin to trade, to buy and sell, to use in gambling and in many transactions.

As a payment method, bitcoin is really useful because of its price value compared in other currency just like fiat. It's price varies depending on the market situation and movement. That's the reason why there are people who are now engaging in bitcoin investment, because they know that there is something more than bitcoin, not only just a coin where you can use as a payment in many transactions.

so why what about fiat . it cant be mined but it do still have a value  ?  other cryptos dont have a fixed supply but do still have a value too  .

 halving does not also trigger demand and it isnt built for that way  but halving have a different purpose   . decrease on the price of btc is the only thing i think of that triggers demand  but that is true that btc has a value because people bought it or put money on it by converting thier fiats   .

For me,bitcoin have value because people patronized it. They understand the usage and importance of this coin and because of that the demand keep on increasing that bring it to become valuable digital currency. Another reason also ,bitcoin has only a limited circulation of supply over demand. And because of being volatile of bitcoin people know that through this they can earn money.

I have watched many youtube videos and article about this and your explanation is the shortest and clearest.

Will definitely use this whenever my friend asked

Thank you :)

Besides supply and demand, Bitcoin has value because it's decentralized and censorship resistant. It's those qualities which make Bitcoin a unique type of currency in the mainstream world. People who invest in Bitcoin can feel confident that their money will safe against third-party intervention. No government can freeze or manipulate your funds, unlike traditional Fiat currencies of today. As long as Bitcoin remains decentralized, people will consider it a valuable cryptocurrency. Usability and mainstream adoption are key towards a sustainable price in the long term.

I've seen many cryptocurrencies with limited supply on the market. Most of them have failed because they were either too centralized or were unable to provide real use cases for the mainstream world. It's a combination of mainstream adoption and decentralization for a cryptocurrency to be considered valuable worldwide. Despite some people saying that Bitcoin is made of "thin air", that's not really the case. Miners waste real world resources in order to "mint" new coins on the Blockchain. This, alongside a constant reduction in the block reward, makes Bitcoin similar to Gold. Let's hope that Bitcoin remains a valuable cryptocurrency for the rest of its lifetime. Just my thoughts ;D

Bitcoins have value because they are useful as a form of money. ... In the case of Bitcoin, this can be measured by its growing base of users, merchants, and startups. As with all currency, bitcoin's value comes only and directly from people willing to accept them as payment and also Bitcoin offers an efficient means of transferring money over the internet and is controlled by a decentralized network with a transparent set of rules, thus presenting an alternative to central bank-controlled fiat money.

For me, bitcoin has value because many people believe in its ability. And alot of people gets interested and others want to learn how to trade and earn from it, and also how to invest in it for the future.
As long as there are people who use bitcoin and some accept it for paying method, it will continue to have value.

Another reason is because of its use. Bitcoin has really evolved from a long way and we can actually see its achievement throughout the years. One thing that we can never forget about Bitcoin is that moment when Bitcoin was used to buy Pizza's. We know that it has value at that time and it was low BUT as time passed by, when people realized that they can gain Bitcoin through some work (mine it, promote it, provide service) and other things. Bitcoin really changed the Cryptocurrency industry and placed it to be a recognizable one. If we understand how Bitcoin works then that is how we see its value.

Agree with you now so many people are agree to invest in bit coin as it has profitable investments ways and people get opportunity to get rich faster than any other business and it has good marketing value also the price is volatile it rises so high. Bit coin is now being trade by so many traders it makes good profit in trading field as well it can be use as currency's as well.

^ Just because bitcoin was already on medium exchange with a fixed amount only. So, this can be measured by its growing base of massive adoption and the value it matters on the demand and supply of bitcoin. This is probably simple answer for you to understand but it has meant a lot.
Nevertheless, I can't give a further explanation but here is a good site that probably gives you an idea of how it does happen, why does bitcoin have a value.
See this, https://bitcoin.org/en/faq#general.

Bitcoins have value because people are willing to pay for them (and of course, people are willing to pay for them because they have value). You have some companies dealing in bitcoins (i.e. selling and buying), and some places only accept bitcoins. Since some places accept it, there is a market for it. Since there is a market for it, it has value.

Exactly. The mere fact that Bitcoin is usable, explains why it's considered to be extremely valuable among everyday people. Besides that, Bitcoin is the most decentralized cryptocurrency in the world. No other cryptocurrency compares to Bitcoin in terms of security/reliability. As long as Bitcoin stays this way, it'll continue to be a valuable asset that can be used as a store of value. While naysayers often say that Bitcoin is "made out of thin air", we all know that's not the case. Miners continuously spend real-world resources (mostly energy) in order to "mint" new Bitcoins. With a reduction in block reward every 4 years, it's expected that Bitcoin will become more valuable in terms of USD.

Nonetheless, anyone can create a cryptocurrency. But if that cryptocurrency doesn't provide real use cases for the mainstream world, it'll be worthless. I've seen many cryptocurrencies that went to $0 in price because they were unable to provide usability to everyday people. What makes a crypto valuable is its usability, ecosystem of merchants, businesses, apps, and most of all, decentralization. And so far, Bitcoin has been delivering as promised day after day, becoming the most valuable cryptocurrency in the world today. Just my opinion :)

Personally, I've always had bitcoins to USE, I'm not a big time hodler (well maybe lately I'm kind of hoarding a bit more than previously), but my main purpose when using bitcoin is useability. I have friends in different parts of the world I can quickly make business with if I need to, or send money to / receive money from, always through bitcoin. It amazes me how banks haven't realized the need for a simple "2 click" solution to send money anywhere in the world with reasonable fees. (No, western union is NOT a good alternative). I think for this reason bitcoin will always have a use case, at least for me.

I agree with the Trust part and I would add the relative small adoption it has too. People trust that BTC won't disappear or go to $0 overnight, therefore some use it as a SoV.

One could add into account the "branding", the Bitcoin name itself, but I guess this is part of adoption.

Actually as a bitcoin user it is one of the frequently asked questions, which you get all the time, important even among people who constantly use bitcoin and like it.

It is also an introspective question, that has not happened to you! anyway, sometime as in this case you must have read it, listened to it, it is a magical question, every time it happens it is like feeding the bitcoin's ego, the question itself is affirmative, that is to say , you no longer have doubts about the existence of bitcoin, perhaps the people who ask, may not have the slightest idea of ​​how it works, for example, knowing a little or nothing about it in the OP, but they are interested in knowing more.

It does not matter if you are a critic of bitcoin, if you are a person who follows bitcoin technically, if you are a bitcoiner or if you simply like bitcoin, over time you learn, as many have said, trust, when so many people agree over the years and more neophytes than experts keep coming, its value rises.

Bitcoin has a value due to the characteristics it has namely scarcity, usability, and maybe transferability. Scarcity because bitcoin undergo supply and demand from its users. Usability because we know that it somehow serves as a form of money. It can be used to invest, trade or any related way of earning. Lastly, transferability for it can be converted into any local currency of a person. People would not be still at this community and believe in cryptocurrency if bitcoin doesn't hold any value.

I was actually interested on that aspect on demand. It is like getting people to be interested on something that is not tangible in the physical world and then it already has value. I am wondering if there are similar events in the world history comparable or similar to the bitcoin phenomenon that started in the 2000s. The closest that I can think of is the Tulip Mania bubble that happened in the 1630s where the Tulip flower suddenly became valuable and there was very high demand. Sceptics even called Bitcoin "Tulip Mania 2"*.

* - https://theconversation.com/tulip-mania-the-classic-story-of-a-dutch-financial-bubble-is-mostly-wrong-91413

There are a lot of alternatives of Fiat money, for example visa, PayPal etc. But the reason of popularity of bitcoins and other cryptocurrencies is that they provide us decentralized methods of payment while remaining anonymous this is the reason why the Crypto is popular amongst the masses and is having value that is always increasing. People are also using Crypto to hide their wealth from prying eyes.

Like anything in life that has value, it is something people will be willing and open to offer a certain amount for due to its supply and demand ratio. Bitcoin is a digital asset used for several purposes and as such, people are willing offer a certain amount in exchange for bitcoin making it valuable. Of course, its value depends on how much people are willing to pay for it. Also, the supply is another determinant factor for why it is valuable.

Gold is not just store of value, it has use case, and in fact it had use case before it was used as money. Bitcoin cannot be just store of value, nothing can be JUST store of value as value comes from use case. Bitcoin is a system which was created to solve major problem that exists with existing banking and monetary system:

1. to replace central banks from having monopoly of supply of money by creating decentralised creation of money (good money) which is limited in supply and cannot be faked.
2. to replace centralised payment system of banking institutions, which are acting as intermediaries. Bitcoin system is natively Peer-to-Peer payment system, why its called P2P Digital Cash, and it needs no intermediates and there are great benefits to having such system used globally by everyone.

Bitcoin BTC is a blockchain that was original implementation of this Bitcoin system, and has since been hijacked by bankers through Blockstream corporation who took control of BTC code and prevented it scaling (by not allowing increase of capacity of the Bitcoin system, which is called on-chain scaling)... which gave need for all the true Bitcoin system supporters and its ecosystem, to create a split in the chain (a hard fork of the blockchain) creating 2 separate blockchains... which are now Bitcoin Core's version that took over BTC ticker, and Bitcoin Cash that uses BCH ticker.

People and traders are putting the value of Bitcoin, they want to buy it and the prices are constantly changing>
you can make a profit on the same day and withdraw your profits.
you will buy rich and back to invest. invit your frind and family, they will invest and both scarcity and utility.
hard limit of 21,000,000 bitcoin units it multiply your profits.

Yeah, its the demand that putting the value in bitcoin if there is no demand in bitcoin market price is going to go zero or if there is a high demand market price will increase.

Bitcoin is just a digital currency so there is no physical coin or something, it's more like of supply and demand thing that's giving value to it. So the more investors the more demand in the market price and the higher the value of bitcoin.

I'm totally agree with your thought. Economists say that We all know that now the demand of BTC is much higher, and its demand is increasing day by day. This is why the price of BTC is so high now. If ever there is a cryptocurrency that will become more popular than BTC then the demand for BTC will be decreased, which is never going to be happened. and if the demand for BTC will decrease then the price of BTC will also go down.

Bitcoin actually moves at a pace of its own. It is better not to review its movement. You won't find any perfect cool edges. Bitcoin will run on its own system. There are a lot of investors around the world who have invested in Bitcoin and are encouraging others to invest their money in Bitcoin. You have to have confidence in Bitcoin so that everyone can see the benefits very soon.

Exactly. Crypto's main purpose is to be an alternative financial system outside the scope of central banks and governments alike. Bitcoin, being the first cryptocurrency in existence, has enjoyed ever-growing popularity within the mainstream world. The fact that Bitcoin has a limited supply and it's the most decentralized cryptocurrency in the world, gives it value. People will find any cryptocurrency valuable as long as they find it useful for mainstream payments. It's no wonder why other prominent cryptocurrencies besides Bitcoin (such as Ethereum and Litecoin) are still valuable these days. Take away decentralization from Bitcoin, and you get a worthless coin with no purpose or future in the mainstream world.

Given that Bitcoin provides the ability for anyone to "exit" the current financial/monetary system, it's very unlikely it'll lose its value in the long run. Anyone who's starting on the world of crypto/Blockchain will "topple" with Bitcoin as it's the cryptocurrency that started it all. Naysayers will say otherwise, since they're too tied to Banks' dominance in mainstream finance. But facts speak for themselves. And so far, Bitcoin has been doing a great job as a resilient and censorship-resistant cryptocurrency that resembles Gold's scarcity in every way. As long as Bitcoin stay this way, it'll continue to be a valuable asset/currency on the crypto market. Just my opinion :)

maybe my opinion is different about why bitcoin has value
in my opinion bitcoin or altcoin has value because the cryptocurrency and fiat communities are very different where fiat has a definite community, its a country that is different from cryptocurrency, cryptocurrency gets free supply and demand everywhere
but cryptocurrency can lose its value at any time if the community leaves it like the first generation computers abandoned by the community due to the release of the latest generation computers that fix flaws in the first generation computers.
this is my opinion on why bitcoin has value

Agreed with some parts, due to the age of the market, total marketcap and the whales, bitcoin moves on its own path mostly regardless to the other markets. But, the reason of why bitcoin have a price is the huge demand, same as the all other markets and products. Because of the demand to the new technology, privacy, safely, being easy to use and man other reasons bitcoin got huge demand and this will make the bitcoin to have a price.

Bitcoin is a digital currency known worldwide in the crypto world. It is faithful, its supply is limited. Bitcoin is gaining acceptance all over the world and the demand is increasing day by day and its price is also increasing. In the meantime, some countries have legalized bitcoin transactions; Hopefully in the future the rest of the world will also legalize Bitcoin; Then I believe that the value of Bitcoin will increase further.

Bitcoin has value because it is a great store of value. It's similar to digital gold, only gold is much harder to store, secure and move around than gold.

Media actually plays a vital role on why the price of bitcoin is significantly high in the market. With its scarce supply and decentralized nature, people are always speculating that one day, its price may skyrocket given the number of times it already happened in the past. With this in mind, people are willing to purchase bitcoin even though they know little about its actual use and history.


I do not think that bitcoin is a good store of value despite its high price. Due to being digital, its intangible and it is also volatile in nature. Its price may either increase/decrease significantly in a short amount of time.

Bitcoin's value also depends on the demand of the people that uses it since its starting value was not that high and once it gain popularity, Bitcoin's value really skyrocketed. Everybody must have remembered the guy that used Bitcoin to buy some pizzas and that basically presents on why Bitcoin has value. Bitcoin is classified as a Cryptocurrency which can be used to pay for goods and items. Though people thinks its limited but I think that it has an unlimited supply in which gaining it depends on how we can earn it.

I am not saying your opinion is wrong, but I think you are somewhat mistaken for equating two generation of computer between old and new with bitcoin. I dont think the bitcoin price will depend on other altcoin and so far there has been no impact on the price of bitcoin at the time the new altcoin are created and dont have them abandoned by the community.

Some of the things that make bitcoin valuable in my opinion are:
1. Limited supply
2. The existence of supply and demand
3. Traded in various local or global exchange

That is quite true BUT studying Bitcoin to review its movement is actually a good study since that is what actually traders do. I mean, they are not wasting their time watching Bitcoin since they know on when to sell their Cryptocurrencies at the right time. Bitcoin's system is so good that it really gained popularity internationally and investing on it is actually a good idea.

Bitcoin has intrinsic value because it is digital commodity money ...


That's all I have to say.  :)

Bitcoin has value because people see that the technology deserves value, as you said based on your research that decentralized technology, security, transparency etc all deserve its value. As time goes by, users see more on the side of the asset which many say that bitcoin is an example of a future currency because of this technology. The increased value is based on the many developments of these technologies that make users carry out mass adoption at certain events of the time.

When something is in high demand, automatically it gets value. This is how bitcoin has got its value, another thing is the technology itself served as an exchange of value. A fine example to state the demand is the guy who threw his hard disk carrying 10000 btc on the scraps. By then it was worth nothing, little by little the demand gave more and more value.

at the first time bitcoin was created bitcoin had no value. bitcoin is not as famous as it is now,
over time bitcoin has grown and the price is getting more expensive, many people want to invest in bitcoin at a high price. so it is possible that bitcoin is getting more and more expensive.

Exactly. I believe it's all based on psychology than anything else. If people are made to believe that something is valuable, it'll be that way for a very long time. Bitcoin, while being an intangible asset, enjoys of a limited supply and unmatched security/reliability unlike no other cryptocurrency in existence today. What gives it value is its decentralized design above all else. Sometimes people compare Bitcoin to traditional Gold because of its store of value properties. A deflationary model will ensure Bitcoin remains valuable for the foreseeable future. That's not possible with inflationary Fiat currencies like the United States Dollar or the Euro.

Nonetheless, Bitcoin will have value as long as it maintains its decentralized and censorship-resistant qualities. If it becomes centralized, then I wouldn't expect it to retain its price on the market for long. It's decentralization which leads people to use it massively in the mainstream world. If Bitcoin remains as it is right now in the future, then it'll always be considered a valuable asset like Gold and other precious metals. Let's hope Bitcoin reaches new all-time highs in price as time goes by. Just my thoughts ;D

BTC has value because it is giving power back to the people to be a custodial of their finances. That is why it is paramount to keep your private key which is access to your capital secret. Limited in the numbers will make it a scarce commodity for life and will brings more value. It has already proven to be a save heaven during this pandemic.

Any precious thing has value like Diamond or Whatever thing which is limited also has value like Limited addition of any mobile etc.
Bitcoin is precious and has limited supply too moreover It has potential to grow in future.
If you as investor wants to buy any company's stock for long term you will choose that company which has nice plans for future in short which has potential to grow, Bitcoin has all of these things and investors know it better therefore bitcoin has value and it will grow as time passes.

Bitcoin has value because you can transfer this value anywhere in the world where there is an Internet! And you can do it in minutes!
And you can't do it with gold or any other material object!
In fact, Bitcoin easily performs the function of money - the transfer of value!

This is very well put, I'll just add one more thing: aside fro the ability to easily transfer value Bitcoin is also a great store of value, and it allows you to safely store value in a similar way to gold, while at the same time being much easier to secure or move.

Hello to all. As long as Bitcoin is easy to sell and easy to buy, regardless of its price, it has value. A lot of useful information can be reported about Bitcoin, but it's a pity that the majority on the planet are subject to official propaganda, which, in most cases, is not a well-wisher of "digital gold". When this changes, the value of Bitcoin will manifest itself in "cosmic" prices.

Bitcoin's value can only be determined by those people who had been working so hard to earn and get more profits. To some people who knew less about it, it was definitely nothing to them. But, for us here in Blockchain world, its value is beyond compare since we fully believe that it has the largest cryptocurrency value in the market. Our patience and hardwork alone can prove how valuable Bitcoin is, and its because of our beliefs and adoption with its awesome features and profits.

The network got developed based on trust, though it hasn't got value in the beginning slowly the increase in demand gave value to it. The value kept growing as the supply is limited and the people using it on different needs keeps on increasing. Though it is completely technology developed, the transformation of valueless token to a transaction source too a reason for getting more and more value.

Who told you that this is a fully developed technology? Any technology always has the potential for development, whether it is a blockchain or a bread maker. The more digital an asset is, the more potential it has for development. Any mention of bitcoin helps its development right now.

Of course Bitcoin has value, therefore the demand for Bitcoin is quite high. Especially in a situation like now,
Bitcoin is great as a store of value. Then it makes the level of investor confidence in Bitcoin very high.
Even Bitcoin can save a country's economy, as happened in Venezuela.

Everything that has a demand has a value. This is not just happening with cryptocurrencies. My parents have a bakery store in the local neighborhood. We launched an ad among friends that we sell very delicious buns with poppy seeds. They started coming to us with a request and then we just started baking them. It's the same with bitcoin.

I think this question is very easy to answer. Bitcoin has value because of Blockchain technology.  Blockchain technology represents the true value of Bitcoin and currently in the crypto ecosystem, blochchain technology is the essential technology for almost all projects. Blockchain technology makes bitcoin valuable.  If you kill Blockchain technology, Bitcoin will automatically value less. Once Blockchain technology is the baseline technology of the crypto ecosystem, Bitcoin will always be valuable.

Bitcoin has value because it solves major problem in finances by giving back total control of our capital without giving anybody the capability to stop any transaction making it possible to be our own bank.

Yes it has value since people have trust on bitcoin that demand is increasing. With so many predictions on bitcoin, this means many users on crypto. It's really valuable through these days people are into bitcoin with current real uses, limited supply, and store of value.

Because bitcoin is a king of coin, and the bitcoin's value depend on investors, big boy, whale. At this moment bitcoin and alcoin just for holding or trading.

i will like to say that its because  in cryptocurrency bitcoin is father while other alternate coin are sub coin in cryptocurrency,because cryptocurrency we have difference coins example etherum, litecoin order numerous coins to be mentioned,so therefore the of bitcoin always remain constant because is most influential coin among other coins.

Of course we hope that can also enjoy bitcoin which has now become a target for investors to make a very attractive investment because its value is quite attractive because the movement of bitcoin is more valuable. We know that with the value that can continue to move up, it is very attractive to many people and of course it is very profitable if we can also save it.

The situation with delicious buns is a bit different than with bitcoins! ;D Suppose you can't store them for a long time, or you have trouble exchanging buns for other products... You can bake an unlimited number of buns... And so on... ;)

Exactly. Bitcoin has many benefits that are not found in Fiat or Gold. The pioneer cryptocurrency is portable, extremely secure, and cheap for cross-border payments (sort of). On top of that, Bitcoin is decentralized with no entity behind it. This is what gives Bitcoin value in the mainstream world. People will continue to invest in Bitcoin as long as it remains decentralized. Even with the high fees and slow transaction confirmation times, people are still using it for mainstream payments. Despite what the naysayers say about Bitcoin, it's still alive and running after all these years. Bitcoin is one of the most (if not the most) valuable cryptocurrencies in the world today. It's hard to take it down after years of non-stop success.

All in all, I believe that Bitcoin will remain a valuable cryptocurrency for many generations. Satoshi was a true genius by inventing a resilient form of money anyone can use worldwide. If it wasn't by his/her/their creation, we wouldn't have true financial freedom. Being the first cryptocurrency that introduced Blockchain technology to the world, explains why Bitcoin still has value today. Just my opinion :)

First, the value of bitcoin lies in blockchain technology, which is very safe and secure, the payment is not reversed through the confirmation of the nodes (confirmed by the miners).
Second, Bitcoin is mined through the process of operating computers to decrypt and create bitcoins. The decoding process requires a computer system and electrical energy is consumed so Bitcoin is the result of the manufacturing process.
Third, bitcoins are widely traded on exchanges, and they become valuable through trading. Bitcoin is widely known and has liquidity around the world so its value is confirmed by everyone.

Well said. I guess this summarizes why Bitcoin has value. Naysayers will tell the world otherwise, as they hate Bitcoin. You'll end up with comments like "Bitcoin is made out of thin air" or "Bitcoin is a scam". But Bitcoin's widespread success thanks to its decentralized and open source nature has proven them wrong. Ultimately, people are the ones who determine the price of a Bitcoin on the market instead of a central authority. With a deflationary model built right onto the protocol, Bitcoin may never become worthless. The pioneer cryptocurrency presents a greater advantage against traditional Fiat in this regard. As the crypto/Blockchain space grows, more people will use Bitcoin in their daily lives. Decentralization is what makes Bitcoin truly valuable above all else. Take that away from Bitcoin, and you'll get nothing more than a worthless coin that mimics traditional banking.

Nonetheless, Bitcoin is known to have an extremely-volatile nature. In other words, the pioneer cryptocurrency is highly unpredictable. While its price continues to go up on the market, it's not a guarantee that it'll always be valuable. As long as people demand Bitcoin in the mainstream world, everything will be fine. Otherwise, Bitcoin will slowly lose its position until it goes all the way down the drain. Just my thoughts ;D

Scarcity and durability  8)

Because it is both scarce and useful as a medium of exchange.
It has the top features and characteristics of trustworthy hard money: durability, portability, divisibility, uniformity, limited supply, and acceptability/fungibility.
Bitcoin is both digital gold and digital cash. It is better than sex and probably the best new invention since sliced bread.

That is a good point i am reading , bitcoin using make sure that it is my own bank and we can easily make any transaction without going any where .It also make our life so easy and save our time as well with modern life .Next world will be dominate by Bitcoin for sure .

saving us from 3rd party,and giving us the chance to have our financial freedom ,these are the reason why Bitcoin has value.
and other than that is the safest way of paying transaction.
specially this pandemic when the people are too afraid holding fiat,so Crypto are there to help them.
but ofcourse only those who have a country that supported Bitcoin.

of course Bitcoin has value because Bitcoin was only created 21 million with an increasing price and everyone wants to own it, it certainly has value, let's see why gold has value because it has an intrinsic character that other assets don't have. Gold is a valuable item that anyone dreams of, and Bitcoin is now so valuable because its price continues to increase.

Am I the only one that doesn't like this answer? The fact that bitcoins can only be 21 million doesn't answer on why it has value. I can create a coin and name it valuecoin, but it doesn't mean that it has value. OP's question is why it has value and you answer him that bitcoins are `few` with an increasing price. He knows it. As for the gold, it doesn't have value only because it has an intrinsic character that others assets don't. It is valuable, because except from the ability to store value, it is one of the greatest metals to make everything look better. I remember Warren Buffet talking about Gold and Bitcoin, he mentioned that bitcoin doesn't help humanity at all.

Anyway to answer the question of the thread, bitcoin has value for many reasons. These are the main ones:

• A currency that no one controls. This is a huge step for mankind. For hundreds of years, people were using a medium of exchange that government controlled and forced its use or precious metals. Why huge step? Because for the first time someone created something that has no owner and especially, a currency.
• Really fast transport of value. With bitcoin you can transfer value within 1 second. Try sending 0.769 grams of gold from America to Europe. It won't be easy for you to cut 0.769 grams from a bar of gold you keep in your basement. Extra hours to deliver it to a different continent.
• You can keep your funds safe. The only thing to do is write 12 words on a piece of paper. The good part is that it doesn't matter the amount of value you "carry". If you have 1 bar of gold keep it on your basement. If you have 1000 bars of gold where exactly will you keep them? It will be suspicious. On bitcoin, though, it has no difference whether you have 1 or 1000BTC.
• Anonymity. This helps mostly on the dark web, I believe, since people that care about their privacy and are not against the law aren't that many. Imagine how easy is drug purchase since there are no middlemen to check sender and receiver.
  

So basically bitcoin is valuable, because of its ability. Since it has a fixed number of units, it makes only demand responsible for the price.

I want to say, though, that it isn't easy to understand how a simple number on a computer corresponds to $10.000, but if you find out why it must have a value, even of 1 cent, then you understand that it can make it to $10k if many people want it.

Truly, Bitcoin has an incentive regardless of the high variance in cost.

Clients can move computerized resources in fast time and complete security. Anybody can be the proprietor of this digital money. You need not complete KYC for having a bitcoin wallet. The bitcoin move charge is extremely modest. The exchange happens with no fringe. This is only the start of the crypto period. There are bunches of astonishments looking out for the market. On the off chance that other cryptographic money needs to rule the market, at that point bitcoin will even now be acknowledged to purchase sell crypto.

Bitcoin has value in my opinion because it's limited and every purchase and sale is decentralized.
So that bitcoin can maintain its value. ;D ;D

Bitcoin has value because of Demand, and a limited supply,
this is the same as Gold, Gold also has a limited Demand and supply, if you compare it almost the same,
especially if Bitcoin becomes popular in the world and the more demand, the price will soar.

Everyone sees bitcoin with different view, with their own valuation. Why bitcoin has value. Although various types of cryptocurrencies that adopt technologies such as bitcoin have emerged a lot, such as Litecoin, Dogecoin, etc, but bitcoin’s status is the ancestor of all existing cryptocurrencies and blockchain technologies.
Bitcoin has a system that presents revolutionary mechanisms for solving many things, especially in the financial world.
The increase in the price of Bitcoin in the cryptocurrency market reflects bitcoin is getting special in the eyes of many people.
That’s why public confidence is growing that Bitcoin has value. Apart from that, there are many other factors that cause bitcoin to have value. It’s just a small part of it.

Bitcoin's price is rising due to high demand but it does not last forever bitcoin is not stable it has high value when the investment is high depending on the demand of the market if the amount of investment is low the price of bitcoin will start falling. The crypto market usually goes up depending on the price of bitcoin while the prices of other currencies are rising due to the rise in the price of bitcoin the demand for the currencies is lower due to its high value.

I think the answer is very simple, it's about supply and demand. So Bitcoin has a value and a certain price according to the ratio of supply and demand in the market. As long as there are users who pay for Bitcoin, trade with it and use it as a payment method, Bitcoin's value will continue to rise.

Exactly. Bitcoin is the best invention in the course of human history. Thanks to Satoshi, we can now enjoy using true sovereign money outside the scope of mainstream governments and central banks worldwide. It's Bitcoin's decentralized and open source nature which gives it value in the mainstream world. Take that away from Bitcoin and you get nothing but a worthless, centralized database subject to manipulation and fraud (similar to how Banks operate today). Considering how far Bitcoin has reached since its inception 11 years ago, it's unlikely it'll go away anytime soon. My guess is that more people will tend to value Bitcoin as an alternative to traditional Gold and mainstream Fiat. The scarcer Bitcoin becomes, the higher its price will be on the market. If everything goes as planned, Bitcoin could easily reach $1m in the future.

Nonetheless, what makes Bitcoin truly valuable is the community supporting it every step of the way. Constant development, and innovation is what has kept Bitcoin on the top spot in market cap for a long time. No other cryptocurrency can outmatch Bitcoin when it comes to delivering rock-solid security and reliability to your funds. While many altcoins have been a victim of 51% attacks and other undesired situations, Bitcoin has been practically untouched by external forces. As long as it's the most secure cryptocurrency in the world, prices will continue in an upward trend. The future is bright for the pioneer cryptocurrency, as it mimics Gold in every way. Just my opinion :)

Precisely. These, among many other reasons, explain why Bitcoin is considered to be a valuable asset/commodity/currency by people in the mainstream world. The decentralized and censorship-resistant nature of Bitcoin, has lead it towards non-stop success. I'd imagine that if Bitcoin was centralized, it would've been worthless by now. Thanks to the ever-increasing community supporting Bitcoin, it has become a force to reckon with. Despite many other cryptocurrencies' attractive features, Bitcoin has been able to stand on its own by serving as a store of value just like Gold. It'll never die, as long as it focuses on the principles of decentralization and censorship resistance.

Nonetheless, it's the people who determine Bitcoin's true value on the free market. That's largely because there's no central authority in control of Bitcoin's supply. There will only exist 21 million coins across the Blockchain, making Bitcoin extremely finite. This mimics one of the many properties of traditional Gold. Naysayers will think otherwise, as they don't want to see Bitcoin succeed in the mainstream world. But it's been shown time to time that Bitcoin is impervious to mainstream events. As long as this is the case, Bitcoin will remain a valuable cryptocurrency for the foreseeable future. Just my opinion :)

One of the unique qualities that make up a nation is currency! It's as significant as it's flag or coat of arms as it represents the indigenous peoples means of exchange. Until Bitcoin came along in 2009, this is what the web very much lacked. A currency that could be used all over the web and that's where Bitcoin stands today.

With the global population being too high even though, it's just a portion of it that are technologically literate or enabled, Bitcoin is doubtedly not going to be enough to be distributed to every person according to their demands hence, the law of demand and supply sets in.
The more scares the commodity, the higher the price and vice versa. This is what determines the value attached to bitcoin as we have it today. And it's not done appreciating just yet.

In my opinion, Bitcoin has value. Because Bitcoin has earned the trust of people, it has demand. It has a limited supply. Also, it provides security. People want to hold their assets securely, and Bitcoin ensures that. If you hold your assets in Bank, your fund can be frozen by the Bank. But Bitcoin can't be frozen. That's why it has a high demand among people. So, Bitcoin will have value unless it loses the trust of people. This term goes with anything in the world. Demand generates value for anything.

Those who wonder how bitcoin gained value and got so much demand can read this blog.

https://coinsfera.com/blog/how-did-bitcoin-become-so-valuable

P.S: If you are wondering why Bitcoin is gaining value for the current time, the likely explanation may be the effects of the halving in May and the growing interest of investors.

Exactly. People trust Bitcoin because it's decentralized and outside the scope of central banks and governments alike. The pioneer cryptocurrency empowers people to gain control of their financial lives like never before. Without the middleman, the average person will truly own his/her money. That's not possible with Fiat, as it's centralized and heavily manipulated by mainstream governments. Scarcity also contributes towards the value of Bitcoin in the mainstream world. With a very limited supply of no more than 21 million coins, Bitcoin becomes similar to Gold in every way. Of course, there will always be haters and/or critics saying otherwise. But the facts are there, as Bitcoin continues to grow into a "force to reckon with".

Nonetheless, each person has a different perception about Bitcoin. Some consider it to be extremely valuable, while others consider it to be worthless. The market speaks for itself as Bitcoin reaches new ATHs (All-time-highs). It's up to you to decide whenever you want to join the revolution or not. As long as Bitcoin has loyal supporters behind it, it'll be able to stand the test of time. Just my opinion :)