Where do bitcoins come from and what gives them their value?

[loveinberlin]

Interesting facts) Every day bitcoin consumes as much energy as 520,000 Canadians. Bitcoin consumes as much energy as the entire Republic of Congo. Bitcoin consumes more energy than each of the 166 countries in the world.

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[franky1]

The most valuable intrinsic characteristic of bitcoin is its scarcity. Because bitcoin is in short supply and no more will ever be created it’s value is inflationary (its value will always increase because no more can be created).

not true
doing some maths
take the 35exa hash average
work out how many asics does that 35exahash
(35000000thash/14= 2500000 s9 ASICS all running all the time)
imagine electric at $0.05c /kwh
an asic uses 1.3kwh
=$162,500 an hour = ~$27083.33 per block(12.5btc) = ~$2166 /btc for electric

then with the asic itself. at bitmains latst release price of $850 per s9i, and assuming they run for a year (52416blocks = 655200btc time)
2500000*850=$3243

make it COST $3248+2166=5409 minimum to mine a btc

so taking the bitcoin price. of ~6700 right now against the $5409 minimal cost makes the cost of mining 80% of intrinsic VALUE
(i excluded some minimal extra things that get added to 'costs' like salary, facility leasing which bring it nearer to $6k cost (nearer 90% value)
but you see my point

in short
the speculation of
supply(amount of coins on exchanges NOT total circulation on network)
scarcity(amount of coins on network NOT on the exchanges)
demand
social drama
other things
makes up LESS than 20% of the price

anyway heres a chart

the top edge of yellow is the actual btc price.
the top line of blue is the combined cost of rigs and electric (s9i @ $850 each and electric at 5cent/kwh calculated using the hashrate changes over the month)

the reason scarcity is not a big percentage is the same as me saying this
my dog will only do ~4000 bowel movements in its life.. anyone want a bag?
lets see if a high population of those reading this says yes.. (they wont)
scarcity alone is small, its the speculation of function, utility and desire along with scarcity that adds more to the price than just cost

as you can see by the yellow speculation area. a month ago thr was 30% speculation ontop of basic minimal mining cost and this week its under 10%

[aezotxmb]

Like fiat money, the valuation of BitCoin stems from its changing share per unit of world GDP transacting in it - the share of world economic activity expected to transact in BitCoin vs. the supply of BitCoin. Consider what gives fiat money value: is it the “faith in and credit of” the issuing government or its quantity relationship to real GDP? The CPI or purchasing power (valuation) of fiat money is clearly determined by its supply relationship to real GDP wherein excess money vs. production of goods and services determines the CPI.

[Escan0r]

What I hear bitcoin coming from japan country and finally used by people from some countries even now may have been used almost all over the world. And why they have value because that's what makes bitcoin worth until now.

[Emmax]

Where do bitcoins come from? From the WeUseCoins.com video it appears they are just being produced by "miners" and sold to people. So who backs Bitcoin or gives it its value?

I think if you make a research you will know where bitcoin is from and you can give yourself the right answer. But what I will let you to know is that bitcoin do not have owner also decentralized no body control it and it price. Bitcoin was invented by an unknown person or group of people under the name Satoshi Nakamoto and released as open-source software in 2009 With that brief introduction do the rest and find the answer that will satisfy you.

[kennywilliams789]

it never be happen bro i think the dip price of bitcoin will be 6500$ and then it will pump again because people will buy more bitcoin in this lower price.

Bitcoin will not die. This is the original crypto and the first ever project of ICO. It will always do goes up and down (Price) but it will never fall to $100 per token. If this happen then some crypto will have a very nice outcomes. like altcoins, eth, trade.io, etc.. There's a lot of crypto btw

[jmvzlfyg]

From my research the best short answer is that they have use value as a medium of value exchange. Their use value comes from having properties of gold (limited supply), and digitally transferable over the internet so can be called digital cash. There is no central authority, so you can trust the wisdom of the crowd. Another good described is a digital distributed notary system.

[Jet Cash]

All the Bitcoin that will ever exist were created when the genesis block was laid. Miners just mine blocks

I started a thread about it on this board

[gpamfmcq]

Bitcoins are just ledger entries. Like all modern currencies they are not backed by anything, but have value based only on their usefulness and their supply.

[wtbhitlv]

The reason mining causes new bitcoins to be created is two-fold. On the one hand it's a mechanism to introduce bitcoins into the money supply that is controllable and essentially random (like winning little lotteries). On the other hand it motivates people to run the mining software which helps to secure the entire system.

[aezotxmb]

They are scarce. The number of bitcoins can be predicted over time. They are easy to move. They are not easy to be forged. This is almost what you need. There is nothing to support them, just like nothing supporting gold. The main purpose of support is to ensure scarcity. But the block generation algorithm is compared with the special currency.

[PEDROMAP]

their value is what people think they are worth, as anything