Where is the source of value and credit support for Bitcoin?

[Levero]

The national legal tender is issued by the government, and the value of the currency is ultimately tied to the country’s credit. However, bitcoin as a cryptocurrency without the backing of a national economy and coercive force, has been accepted and recognized by more and more people, and its value has also increased exponentially. How was it accepted by people so quickly?
Bitcoin's decentralization makes its transactions free from any supervision and manipulation and independent of the current monetary and financial system. Will its emergence be the country's fiscal sovereignty and monetary sovereignty? If the government strengthens its control in the future, can it continue to  its current development?
 

[CryptoHeadlineNews]

Actually that is a good question you asked, but to brushing it up, Bitcoin as a cryptocurrency is moved by demand and supply and sometimes news, because it's still the news that affect it's demand and the supply system.

Because the more the demand of bitcoin, the higher it's price will increase because of its limited availability, which because it won't be able to meet demand, causing an increase in price so that only those who are financially buoyant enough could afford it's limited offer. And vice versa, when the demand is low, causing a decrease in price.. which is also applicable to other assets like gold, but the difference is that Bitcoin is not controlled by any government.

[Findingnemo]

The national legal tender is issued by the government, and the value of the currency is ultimately tied to the country’s credit.
 

When someone has the ultimate controlling power then they become the God and we all became their slaves that is where the financial freedom lack from that government keeps printing the money and decreasing the actual value of money while increasing the supply every year.

But bitcoin is against such thing, it is expected to provide the users the ultimate freedom but it doesn't mean they can use it for violating the laws and even if they violates it they can never erase the traces because everything is being stored in the public ledger so called blockhain.

[Poker Player]

The source of value are its intrinsic properties, its decentralization, as you mentioned, its limited finite supply, its irreversibility.

Will its emergence be the country's fiscal sovereignty and monetary sovereignty? If the government strengthens its control in the future, can it continue to  its current development?

Yes the Bitcoin will continue to be developed no matter what the government does or doesn't do.Governments will want to control it more and more, and it seems to me that to a large extent they will succeed, but I believe that there will always be a space for privacy. I think that the rise in price goes hand in hand with regulation and (attempted) control by governments, otherwise there would not be a massive adoption by individuals and institutions.

[pooya87]

How was it accepted by people so quickly?

Bitcoin is not yet accepted by that many people!
And you are forgetting the history of money. The "medium of exchange" has not always been issued by the government or backed by the centralized banking system. It has changed a lot and evolved into the centralized fiat system that we know today and now we have the decentralized version of money in digital form once again. It is like a full circle.

[bitmover]

How was it accepted by people so quickly?

Bitcoin is not yet accepted by that many people!
And you are forgetting the history of money. The "medium of exchange" has not always been issued by the government or backed by the centralized banking system. It has changed a lot and evolved into the centralized fiat system that we know today and now we have the decentralized version of money in digital form once again. It is like a full circle.

As pooya87 said, not so long ago usd was backed up by commodities (gold). Things changed in 1971 when united states abandoned Bretton woods deal and usd was no longer backed up by gold, becoming a fiat currency.

A fiat currency is a currency backed by nothing, only in government authority and the trust people have in it.

Will its emergence be the country's fiscal sovereignty and monetary sovereignty? If the government strengthens its control in the future, can it continue to  its current development?
 

About fiscal sovereignty,  I think it is quit the opposite.
Now governments are free to print out money and spend more than they have. If bitcoin is ever to be used by governments,  they will not be able to do so, which is a loss of sovereignty

[cryptoaddictchie]

How was it accepted by people so quickly?

Because people trust its transparency and its system. I myself doesnt believe how it operates before but I see its usefulness in a very convenient way. Yes its somehow dangerous cause its value isnt stable but the way its being used remain and expand in the long run which means bitcoin could really help the community to operate without any realms of government. Its unlikely a perfect method but Satoshi did a good shot on exposing this on the mass people.

[tranthidung]

The Bullish Case for Bitcoin. With time, Bitcoin will become a sort of financial religion. From Lindy effect to Dunbar effect, Bitcoin will be integrated deeper in human societies, very naturally.

A fiat currency is a currency backed by nothing, only in government authority and the trust people have in it.

With paper or polymer fiat currencies, they print without any backed assets. It causes the decrease of Purchasing Power of U.S. Dollar.

With CBDCs, they will mint their digitalized fiat currencies from the air. It's great adaptation from printing to minting.

References

• https://www.visualcapitalist.com/purchasing-power-of-the-u-s-dollar-over-time/
• https://fred.stlouisfed.org/series/CUUR0000SA0R

[hugeblack]

Personally, I see that the central bank guarantee is two things:

The acquisition of these currencies value: meaning that they have a value compared to the rest of the papers and therefore must be accepted for trading.
Ensuring that there is no fraud in it: here, the transparency and the decentralized management method provided by the Bitcoin Blockchain guarantee this.

Thus, Bitcoin succeeded in occupying a similar place to paper money, and therefore many began to use it.