How does Bitcoin have any value?

[Realist247]

How does Bitcoin have any value?

It's mainly because what began as a currency has now turned into an "investment" and use as a currency is probably less than 1% of those involved.  People involved spend all of their time trying to get everyone they know as well as strangers to buy into it so those promoting it will gain from the new money inflows. (But don't you dare call it a Ponzi scheme since the truth tends to cause riots around here.)  It's a disaster waiting to happen...if I'm reading your question correctly as being rhetorical.  It needs to greatly come down in value if it is to become a day-to-day currency since the ridiculous price does nothing other than create obscene fees and transaction times.

[farhaan]

How does Bitcoin have any value?

Bitcoin's value is based on the trust which bitcoin community has on it.It has gained the trust of investors all over the world.More over,bitcoin is free from inflation as its total supply of coins is fixed as 21 million coins and it would remain unchanged unlike USD which is printed forever.Bitcoin has got its value earlier by delivering unique features to its investors.

[adiksau0414]

This is an interesting article i found,  i really don't know if this changes my mind about the value of bitcoin but this article has its own pook of view.  People will judge if bitcoin has value or no value.

"Bitcoins do not have value as a physical commodity like gold and are not widely accepted as legal tender like dollars. Rather, Bitcoin appears to have value for the following reasons: it is popular. In short, people accept and trade in Bitcoin because other people accept and trade in Bitcoin. It is recognized and accepted as a currency by many. Bitcoin is decentralized and limited. This is a major factor for many Bitcoin users. Bitcoin is hard for governments to trace and tax. Also, unlike fiat money produced by central banks, there is a cap set on total Bitcoins, limiting how much the currency can devalue through inflation."

[ghost424]

The value of maybe determined by the number of users that is benefiting from it. It can also be determined by the number of supporters that bitcoin has and how is it helping the community. Bitcoin's value may also depend on the supply and demand of the cryptocurrency in need.

[Opquar]

Value is a man made concept. If someone wants to pay an amount for something, then it has value. Do not read too much into it.

[wiser]

How does Bitcoin have any value?

That is an excellent question, and one I have been asked in real life by friends, and it's not easy to answer. The short simple answer is that it has value because there are people willing to pay for it. People are willing to pay for it because they think it will have more value in the future.

But what is actually backing Bitcoin up?

I believe it's mostly the technology and the fact that many people are involved in it. With that said, there are other coins which have taken the block chain concept one or more steps further, improved on the technology. Some of those coins will eventually replace Bitcoin in my opinion. But for the time being, and probably the next few years, Bitcoin has the first mover advantage, and it's the only cryptocoin most people know about at this point.

Another thing adding value to Bitcoin is the infrastructure that has developed around it. There are more and more services out there which take Bitcoin in payments or even exist because of Bitcoin, such as Coinbase, BitTrex, Poloniex and numerous other exchanges.

With all that said, there are still aspects of Bitcoin that are backed up by the current interest of more people and speculators. Right now they want in, so the price goes up. But if their interests go elsewhere, then the price goes down. So for that reason, Bitcoin could also be a bit of a bubble, so you need to invest with caution. I would also recommend getting educated on the other cryptocoins and diversifying into some of them as well.

[Envrin]

How does Bitcoin have any value?

Bitcoin does not just have any significance, it's the main crypto currency. Bitcoins own more than 50% of the capitalization of all cryptology. And all the crypto-currencies bear the huge promise inherent in the code economically.

[BitBenefit]

It's a matter of supply and demand. People are starting to realize all the advantages that bitcoin brings and they buy it. Also miners pay a lot for energy and they are not gonna sell at a lower price ( meaning they wont sell at a loss)

[Caesar-Giulius]

Bitcoin value is determined by the buyers and sellers. Read about supply and demand and you will know in detail. In summary, the seller sell BTC at a price level and the buyer thinks it is worth the price and buy it.

[Valentina N]

Hello all! You know all are simple for example art. We can say that painter spend time and use soul for creating drawing picture and if I want get this picture  I will pay all I can to getting this but another person want it too. So its create supply and demand. Maybe not perfect example sorry)

[salterious]

How does Bitcoin have any value?

Honestly it doesn't have any inherent value as it is backed by nothing but nonetheless it has the value people are willing to give it and that is quite big right now. Goes to show how much the world doesn't trust governments and I am no different I dislike governments for the most part. Sure they provide us with resources based off taxes but still they are so slow at changing policies and doing anything the citizens want. If you are in a communist state you surely agree and if you are in a "democracy" I think you would also agree but this is no true democracy. It is handful of people deciding what to do for you which I think is complete crap. If you want change put EVERYTHING up to a vote, if not you will get bitcoin revolution. Eat it governments, eat it all god damn day

[McKane]

Now prime misters of countries are holding bitcoin and even kids are holding bitcoins for these future because they know that bitcoin will change there life. So what can we say more about bitcoin. Because bitcoin having not even value but it have marked the history because it is the most precious value.

[FasTroy]

Bitcoin value is determined by the buyers and sellers. Read about supply and demand and you will know in detail. In summary, the seller sell BTC at a price level and the buyer thinks it is worth the price and buy it.

Yeah this is the main thing that bitcoin will have the value, so for people who want to understand that, they should read about supply and demand like you said. Now the demand of bitcoin is too high so we see that bitcoin price increase too much.

[Anonymous Kid]

Utility, Speculation and Store of value.

[patapon49]

it has the value that people are willing to grant him

[wiser]

This excellent article does a great job of answering the original question posed on this thread. I learned a lot from reading it:

https://blog.chain.com/a-letter-to-jamie-dimon-de89d417cb80

[Om.monata]

in the world of bitcoin cryptocurrency does have a very good value, because bitcoin has now become a very useful and useful payment tool by utilizing the sophisticated technological sophistication.

[orka39]

What is value? Value of anything is coming from demand. If no demand so no value.
And now, as we know demand to bitcoin is quite high and it makes bitcoin has value. More demand so more valuable it is.

[haileysantos95]

The value of bitcoin comes from its supply,demand and how hard it is to mine, we all know that todays demand for bitcoin is high and there is a limited supply in the market.

[tanghere1]

Bitcoin has value because it is not printed by government or banks and have limited supply so there is nothing that can increase its supply and can't have inflation.

There is huge demand for bitcoin from around the world because it is accepted by thousands of merchants worldwide. Also to mine new bitcoin it requires lots of resources (electric + financial) so no any miners will be willing to sell it at lower price for loss.

This is a great simplification. I often wonder how does the bitcoin gain it's price and you just explained it to me. Kudos