Bitcoin is seen as a currency that is not regulated by any institute. It does not generate any revenue and therefore, has a zero minimal value. What then brings about its value and drives it as well?
bitcoin does have a minimal value.
its based on many factors. but fortified and strengthened by the cost of acquisition
do not be fooled that the price is value. there are actually 2 layers to it
the underlying value is the LOW of a long-tested out period where its clear that the majority refuse to sell below.
this is based on acquisition costs... the volatile price is the speculation above that which is variable
concentrating on the LOW/acquisition/bottom
its not just buying on the market but also mining. if it costs the average/majority of miners atleast X to mine bitcoin. they wont foolishly sell for less. and if they can buy it on a market for less than they can mine it. they will buy it. which helps build up the underlying value of X
over the last year based on mining costs. the amount of coins that have moved/traded and such, the majority of coins hold a underlying value of $5,800+
yea some people bought at $6k-$20k but the higher the number goes the less people actually got it at that price.
but as based on a good long 11 month period of multiple opportunities for everyone to sell for less than $5,800 no one has bit. mining costs are also above $5,800 which also as i said strengthen that bottomline value where people wont sell at a loss. so there is a bottom.
i emphasis the 'plus' of $5,800. but du to lack of test of time, retest of bottom, variable mining cost variable market acquisition cost and lack of majority of all the above. mentioning any underlying value specific number at this point is too early as the majority have yet to really test, prove that a higher milestone should exist (EG latest retest of $5,800 was not that long ago. and the maths of mining costs also shown that there have been some opportunity to mine coin at $5,800 recently too even many periods above $5,800. so its just too soon to call out a higher bottom value
its like gold. if it only cost a penny to mine gold everyone would mine it as they could sell it for any price and break even and profit. thus gold wouldnt be ~$1k/oz
the reason its $1k/oz is because gold needs excavators, diesel, labour which cost money. so miners wont sell for less
as for the gold markets. again if the majority of holders bought gold at a penny they would sell for any price. but they too over time been paying high hundreds and this last decade the $1k area. so thats why gold has a underlying value of such.
