Bitcoin is Based on People's Faith

[aesma]

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

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

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

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

I believe that's true.

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

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

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

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

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

[beerlover]

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

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

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

[TomUyamot]

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

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

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

[haroldtee]

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

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

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

[Sureness]

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

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

[hisuka2987]

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

[Rizky Aditya]

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

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

[Cosbycoin]

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

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

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

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

I believe that's true.

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

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

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

[Caelanpelley]

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

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

[naughty1]

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

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

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

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

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

[jvdp]

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

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

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

[bouren]

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

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

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

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

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

[ScriptYoYo]

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

[Vixmore]

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

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

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

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

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

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

[Lieldoryn]

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

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

[olushakes]

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

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

1 There is really no anonymity

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

3. Several major exchanges starts closing down without trace

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

[ICObox]

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

[gingerxlady]

I can relate though.

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

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

[senin]

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

[morata]

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