Why Does Bitcoin Have Value?

[Abiky]

There are a lot of alternatives of Fiat money, for example visa, PayPal etc. But the reason of popularity of bitcoins and other cryptocurrencies is that they provide us decentralized methods of payment while remaining anonymous this is the reason why the Crypto is popular amongst the masses and is having value that is always increasing. People are also using Crypto to hide their wealth from prying eyes.

Exactly. Crypto's main purpose is to be an alternative financial system outside the scope of central banks and governments alike. Bitcoin, being the first cryptocurrency in existence, has enjoyed ever-growing popularity within the mainstream world. The fact that Bitcoin has a limited supply and it's the most decentralized cryptocurrency in the world, gives it value. People will find any cryptocurrency valuable as long as they find it useful for mainstream payments. It's no wonder why other prominent cryptocurrencies besides Bitcoin (such as Ethereum and Litecoin) are still valuable these days. Take away decentralization from Bitcoin, and you get a worthless coin with no purpose or future in the mainstream world.

Given that Bitcoin provides the ability for anyone to "exit" the current financial/monetary system, it's very unlikely it'll lose its value in the long run. Anyone who's starting on the world of crypto/Blockchain will "topple" with Bitcoin as it's the cryptocurrency that started it all. Naysayers will say otherwise, since they're too tied to Banks' dominance in mainstream finance. But facts speak for themselves. And so far, Bitcoin has been doing a great job as a resilient and censorship-resistant cryptocurrency that resembles Gold's scarcity in every way. As long as Bitcoin stay this way, it'll continue to be a valuable asset/currency on the crypto market. Just my opinion

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[Dedewahyu]

maybe my opinion is different about why bitcoin has value
in my opinion bitcoin or altcoin has value because the cryptocurrency and fiat communities are very different where fiat has a definite community, its a country that is different from cryptocurrency, cryptocurrency gets free supply and demand everywhere
but cryptocurrency can lose its value at any time if the community leaves it like the first generation computers abandoned by the community due to the release of the latest generation computers that fix flaws in the first generation computers.
this is my opinion on why bitcoin has value

[Leviathan.007]

Bitcoin actually moves at a pace of its own. It is better not to review its movement. You won't find any perfect cool edges. Bitcoin will run on its own system. There are a lot of investors around the world who have invested in Bitcoin and are encouraging others to invest their money in Bitcoin. You have to have confidence in Bitcoin so that everyone can see the benefits very soon.

Agreed with some parts, due to the age of the market, total marketcap and the whales, bitcoin moves on its own path mostly regardless to the other markets. But, the reason of why bitcoin have a price is the huge demand, same as the all other markets and products. Because of the demand to the new technology, privacy, safely, being easy to use and man other reasons bitcoin got huge demand and this will make the bitcoin to have a price.

[Rafiqul]

Bitcoin is a digital currency known worldwide in the crypto world. It is faithful, its supply is limited. Bitcoin is gaining acceptance all over the world and the demand is increasing day by day and its price is also increasing. In the meantime, some countries have legalized bitcoin transactions; Hopefully in the future the rest of the world will also legalize Bitcoin; Then I believe that the value of Bitcoin will increase further.

[NVZNtoken]

Bitcoin has value because it is a great store of value. It's similar to digital gold, only gold is much harder to store, secure and move around than gold.

[qwertyup23]

Media actually plays a vital role on why the price of bitcoin is significantly high in the market. With its scarce supply and decentralized nature, people are always speculating that one day, its price may skyrocket given the number of times it already happened in the past. With this in mind, people are willing to purchase bitcoin even though they know little about its actual use and history.

Bitcoin has value because it is a great store of value. It's similar to digital gold, only gold is much harder to store, secure and move around than gold.

I do not think that bitcoin is a good store of value despite its high price. Due to being digital, its intangible and it is also volatile in nature. Its price may either increase/decrease significantly in a short amount of time.

[mezzaluna]

It is a simple yet not easy question to answer: why does bitcoin have value?

Bitcoin has value because it has both scarcity and utility. It is a limited and useful resource. It is important to note that something must be BOTH in order to command a market value, NOT either.

Bitcoin's value also depends on the demand of the people that uses it since its starting value was not that high and once it gain popularity, Bitcoin's value really skyrocketed. Everybody must have remembered the guy that used Bitcoin to buy some pizzas and that basically presents on why Bitcoin has value. Bitcoin is classified as a Cryptocurrency which can be used to pay for goods and items. Though people thinks its limited but I think that it has an unlimited supply in which gaining it depends on how we can earn it.

[BITCOIN4X]

in my opinion bitcoin or altcoin has value because the cryptocurrency and fiat communities are very different where fiat has a definite community, its a country that is different from cryptocurrency, cryptocurrency gets free supply and demand everywhere
but cryptocurrency can lose its value at any time if the community leaves it like the first generation computers abandoned by the community due to the release of the latest generation computers that fix flaws in the first generation computers.

I am not saying your opinion is wrong, but I think you are somewhat mistaken for equating two generation of computer between old and new with bitcoin. I dont think the bitcoin price will depend on other altcoin and so far there has been no impact on the price of bitcoin at the time the new altcoin are created and dont have them abandoned by the community.

Some of the things that make bitcoin valuable in my opinion are:
1. Limited supply
2. The existence of supply and demand
3. Traded in various local or global exchange

[mezzaluna]

Bitcoin actually moves at a pace of its own. It is better not to review its movement. You won't find any perfect cool edges. Bitcoin will run on its own system. There are a lot of investors around the world who have invested in Bitcoin and are encouraging others to invest their money in Bitcoin. You have to have confidence in Bitcoin so that everyone can see the benefits very soon.

That is quite true BUT studying Bitcoin to review its movement is actually a good study since that is what actually traders do. I mean, they are not wasting their time watching Bitcoin since they know on when to sell their Cryptocurrencies at the right time. Bitcoin's system is so good that it really gained popularity internationally and investing on it is actually a good idea.

[BitcoinFX]

Bitcoin has intrinsic value because it is digital commodity money ...

...snip...

Bitcoin is not a "game" that can be completed. It is a protocol and eco-system of digital cash and a store-of-value (i.e. digital gold).

Bitcoin (BTC) is the first digital commodity money of the internet.

- https://en.wikipedia.org/wiki/Commodity_money

Bitcoin's monetary (intrinsic) value is primarily derived from electricity, cryptography (math) and time. Markets (and arguably $ price) are secondary.

The very first Bitcoin exchange rates were established as such (before this, Bitcoin remained entirely valueless) ...

- http://newlibertystandard.wikifoundry.com/page/Exchange+Rate

"The exchange rate is the average of the adjusted bitcoin production per day divided by the average production costs per day. The per day averages start with the previous day and will eventually extend back 365 days, but until then, they increase by half a day each day by taking the average of two averages. Production costs consist of the price of broadband Internet and metered electricity. The adjusted bitcoin production is the following spreadsheet calculation =if(M2>N2,((B2+F2)/2)*(1/(3-((N2/M2)*2))),((B2+F2)/2)*(3-((M2/N2)*2))) where M2 is the available balance of dollars times the exchange rate of that same day, N2 is the available balance of bitcoins, B2 is the amount of bitcoins produced the previous day and F2 is the average of the adjusted bitcoin production per day."

- http://newlibertystandard.wikifoundry.com/page/2009+Exchange+Rate

"During 2009 my exchange rate was calculated by dividing $1.00 by the average amount of electricity required to run a computer with high CPU for a year, 1331.5 kWh, multiplied by the the average residential cost of electricity in the United States for the previous year, $0.1136, divided by 12 months divided by the number of bitcoins generated by my computer over the past 30 days."

...snip...

That's all I have to say.  

[ufaiz50]

Bitcoin has value because people see that the technology deserves value, as you said based on your research that decentralized technology, security, transparency etc all deserve its value. As time goes by, users see more on the side of the asset which many say that bitcoin is an example of a future currency because of this technology. The increased value is based on the many developments of these technologies that make users carry out mass adoption at certain events of the time.

[Ayiranorea]

When something is in high demand, automatically it gets value. This is how bitcoin has got its value, another thing is the technology itself served as an exchange of value. A fine example to state the demand is the guy who threw his hard disk carrying 10000 btc on the scraps. By then it was worth nothing, little by little the demand gave more and more value.

[Mr.sprin]

at the first time bitcoin was created bitcoin had no value. bitcoin is not as famous as it is now,
over time bitcoin has grown and the price is getting more expensive, many people want to invest in bitcoin at a high price. so it is possible that bitcoin is getting more and more expensive.

[Abiky]

Media actually plays a vital role on why the price of bitcoin is significantly high in the market. With its scarce supply and decentralized nature, people are always speculating that one day, its price may skyrocket given the number of times it already happened in the past. With this in mind, people are willing to purchase bitcoin even though they know little about its actual use and history.

Exactly. I believe it's all based on psychology than anything else. If people are made to believe that something is valuable, it'll be that way for a very long time. Bitcoin, while being an intangible asset, enjoys of a limited supply and unmatched security/reliability unlike no other cryptocurrency in existence today. What gives it value is its decentralized design above all else. Sometimes people compare Bitcoin to traditional Gold because of its store of value properties. A deflationary model will ensure Bitcoin remains valuable for the foreseeable future. That's not possible with inflationary Fiat currencies like the United States Dollar or the Euro.

Nonetheless, Bitcoin will have value as long as it maintains its decentralized and censorship-resistant qualities. If it becomes centralized, then I wouldn't expect it to retain its price on the market for long. It's decentralization which leads people to use it massively in the mainstream world. If Bitcoin remains as it is right now in the future, then it'll always be considered a valuable asset like Gold and other precious metals. Let's hope Bitcoin reaches new all-time highs in price as time goes by. Just my thoughts

[Zemomtum]

BTC has value because it is giving power back to the people to be a custodial of their finances. That is why it is paramount to keep your private key which is access to your capital secret. Limited in the numbers will make it a scarce commodity for life and will brings more value. It has already proven to be a save heaven during this pandemic.

[Spone7]

Any precious thing has value like Diamond or Whatever thing which is limited also has value like Limited addition of any mobile etc.
Bitcoin is precious and has limited supply too moreover It has potential to grow in future.
If you as investor wants to buy any company's stock for long term you will choose that company which has nice plans for future in short which has potential to grow, Bitcoin has all of these things and investors know it better therefore bitcoin has value and it will grow as time passes.

[3meek]

Bitcoin has value because it is a great store of value. It's similar to digital gold, only gold is much harder to store, secure and move around than gold.

Bitcoin has value because you can transfer this value anywhere in the world where there is an Internet! And you can do it in minutes!
And you can't do it with gold or any other material object!
In fact, Bitcoin easily performs the function of money - the transfer of value!

[NVZNtoken]

Bitcoin has value because it is a great store of value. It's similar to digital gold, only gold is much harder to store, secure and move around than gold.

Bitcoin has value because you can transfer this value anywhere in the world where there is an Internet! And you can do it in minutes!
And you can't do it with gold or any other material object!
In fact, Bitcoin easily performs the function of money - the transfer of value!

This is very well put, I'll just add one more thing: aside fro the ability to easily transfer value Bitcoin is also a great store of value, and it allows you to safely store value in a similar way to gold, while at the same time being much easier to secure or move.

[online73]

Hello to all. As long as Bitcoin is easy to sell and easy to buy, regardless of its price, it has value. A lot of useful information can be reported about Bitcoin, but it's a pity that the majority on the planet are subject to official propaganda, which, in most cases, is not a well-wisher of "digital gold". When this changes, the value of Bitcoin will manifest itself in "cosmic" prices.

[Sapphire915]

Bitcoin's value can only be determined by those people who had been working so hard to earn and get more profits. To some people who knew less about it, it was definitely nothing to them. But, for us here in Blockchain world, its value is beyond compare since we fully believe that it has the largest cryptocurrency value in the market. Our patience and hardwork alone can prove how valuable Bitcoin is, and its because of our beliefs and adoption with its awesome features and profits.