Why Does Bitcoin Have Value?

[Abiky]

Says who? There is a merchant I buy from fairly regularly whom I (and several others) pay in bitcoin, who has told (and shown) me that he then uses that bitcoin to pay part of the salary of some of this staff members, and also to pay one of his suppliers. His employees which are paid partly in bitcoin are paid with a fixed amount of bitcoin, regardless of its fiat price. They earned relatively more in terms of fiat last June/July when the price was $13k, and they will earn relatively less currently in terms of fiat, but they always earned the same amount of bitcoin.

Bitcoin can function just fine without fiat. I earn a fixed amount of bitcoin from my signature and avatar, regardless of fiat price. I buy things from this merchant who pays his employees in a fixed amount of bitcoin, regardless of fiat price. There is no inherent need to convert to, or even think about, fiat when using bitcoin, unless you want to.

Exactly. Bitcoin doesn't need Fiat since it was designed to "live on its own". Satoshi intended Bitcoin to be an alternative to the existing monetary system that's prone to corruption and fraud by central banks worldwide. The only reason why Bitcoin has a price in terms of Fiat, is because people measure the pioneer cryptocurrency against the USD as a unit of account. We all know that 1 Bitcoin will always be equal to 1 Bitcoin no matter what. The fact that Bitcoin is a deflationary cryptocurrency with unmatched security, tell us that is still has value. It's just that most people hasn't recognized its true benefits yet.

Once trust is lost on the financial system of today (The FED), you could expect many people joining in the Bitcoin bandwagon. This could take some time though, as people are still focused on Fiat in these desperate times. Slowly but surely, Bitcoin will become recognized as the true save-haven asset of the world. If you put Fiat aside, you'll notice that many services and jobs are provided or paid for with Bitcoin. The number of people accepting the digital currency for daily payments is at an ever-growing rate. Anyone can work for Bitcoin, and even buy stuff with it directly without ever having to interact with Fiat. If you want contribute to the crypto economy, it's best that you never cash out for Fiat. Instead, use crypto directly for sending/receiving payments just as you would with Fiat.

In the end, Bitcoin will become Gold's successor as people will use it in times of need. The collapse of world's economic system will happen soon, paving the way for widespread adoption of Bitcoin and other cryptocurrencies. With the next halving just 2 months away, prices might rise a little in terms of Fiat. But even if everything remains the same, Bitcoin will always be there as an alternative to Fiat that's censorship-resistant giving you complete control of your money no matter what happens in the mainstream world. Just my thoughts

[kemoglo]

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

The answer, we believe is summarized in this video: https://www.youtube.com/watch?v=Vv2-6KDlZSE

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 is limited to the software-imposed hard limit of 21,000,000 bitcoin units ever in circulation. It is useful because it allows payment information to be secured by a decentralized computing network backed by magnitudes of raw hashing power. That raw hashing power is energy (electricity) converted into digital utility. Each transaction must compete (fee market) to be included in the next block of transactions which has a limited [block space] due to the block size limit (2MB) imposed on each ~10 minute block.

We can expect both the value to increase and the number of users to increase exponentially so long as the current technology maintains itself and remains both useful and in a limited abundance.

Bitcoin will always retain market value so long as miner nodes are actively contributing their hashing power to secure the network (proof of work).

Learn more about bitcoin at http://diginomics.com

I think you're missing a key third factor - people give it value. This utility and scarcity could not be enough, the fact that people who use bitcoin think it has value also gives it value. This third factor I'm talking about is what made it rise so much during 2017, utility and scarcity might have got it up to $2k on 2017, but it was people's perception what got it to $20k. It's also why it crashed so fast, but still the point is valid, it's when there's equilibrium between these that you get a stable price.

[verita1]

'scarcity and utility', 'proof of work', 'speculation', 'manipulation', 'price'.
All these characteristics are related to BTCitcoin but for a person like me. I'm not looking to fill my bags, Only I want to earn a decent income from my work.
Awesome, it's the great value that Bitcoin has for me. Bitcoin can empower the economy of many from individuals to the largest industry.

[Abiky]

I think you're missing a key third factor - people give it value. This utility and scarcity could not be enough, the fact that people who use bitcoin think it has value also gives it value. This third factor I'm talking about is what made it rise so much during 2017, utility and scarcity might have got it up to $2k on 2017, but it was people's perception what got it to $20k. It's also why it crashed so fast, but still the point is valid, it's when there's equilibrium between these that you get a stable price.

Exactly. People are the ones who determine the value of a Bitcoin. This is completely different from Fiat where a central authority is the one who determines the value of the currency being issued to everyday people. Considering that Bitcoin is decentralized, anyone can determine its path forward both in terms of price and mainstream adoption. Bitcoin is still valuable because there are people supporting it in the mainstream world. Since the pioneer cryptocurrency is censorship-resistant and resilient against external attacks, people have considered it to be a valuable asset within the mainstream world. Take away Bitcoin's decentralization and you'll see how worthless it'll become over time. The true value of Bitcoin lies in its underlying technology (Blockchain) which provides unparalleled security, reliability, and freedom unlike any other asset in the mainstream world. It's often compared to Gold because of this.

As long as there are real use cases for Bitcoin in the mainstream world, it'll continue to be a valuable cryptocurrency for years to come. It's very unlikely it'll ever lose its value, as many people trust it after all these years. The pioneer cryptocurrency serves as an alternative monetary system that does its job well in providing financial freedom to anyone without the fear of getting funds frozen or confiscated by a third party. No what happens in the mainstream world, there will always be a use for Bitcoin because of its decentralized nature. Just my thoughts

[elenag1042]

The estimation of bitcoin is gotten from its unique uses for cash moves and settlements. This is constrained inventory, shortage, cost reserve funds and numerous potential employments. On the off chance that you purchase for day exchanging, you may lose cash, yet on the off chance that you hold it long haul, it is demonstrated that you get an extraordinary ROI. What's more, Bitcoin has quite recently started, think about the web/email of the 90s/90s. A decentralized innovation that utilizes a significant one won't vanish, regardless of whether some severe government attempts to boycott it.

[Nhor1011]

Bitcoin has a value because people give value on it and patronized it. They understand the nature and importance of bitcoin and accept it a valuable digital.currency. Also the creator of this bitcoin is so genious,because he/they make sure that people will accept and use it. That's why the demand increasing since from the start until now that keep this coin valuable in crypto world.

[Abiky]

The estimation of bitcoin is gotten from its unique uses for cash moves and settlements. This is constrained inventory, shortage, cost reserve funds and numerous potential employments. On the off chance that you purchase for day exchanging, you may lose cash, yet on the off chance that you hold it long haul, it is demonstrated that you get an extraordinary ROI. What's more, Bitcoin has quite recently started, think about the web/email of the 90s/90s. A decentralized innovation that utilizes a significant one won't vanish, regardless of whether some severe government attempts to boycott it.

Agree. Bitcoin is still in its very beginnings. It has value because of its decentralized and censorship-resistant properties. Not to mention, Bitcoin is deflationary by design. Some people say that Bitcoin is "made out of thin air" but that's not the case since real energy and hard work is spent for the mintage of new coins on the Blockchain. As long as Bitcoin remains close to Gold in every way, it'll be an extremely valuable cryptocurrency for the foreseeable future. Right now, it's more useful as a store of value than digital cash. The fact that Bitcoin is decentralized, makes governments' efforts against it useless in the long run. It's the first monetary system that brings people freedom above anything else. With no greedy bankers charging you high fees, or maintaining custody of your funds, you're the sole owner of your Bitcoin.

Remember, Bitcoin is like Gold where it retains its value for many years. The more scarcer it gets, the more valuable it'll be in the future. As long as there are people supporting the pioneer cryptocurrency, it'll always be used as an alternative to precious metals like Gold or Silver or even traditional Fiat. It's undeniable that Bitcoin will be here to stay regardless of its price for a very long time. Just my thoughts

[online73]

Hello everybody. A lot can be said about why bitcoin is valuable. But the most important thing that you can immediately say in the affirmative is that Bitcoin is not possible to fake, like any paper bill. Any currency of the world can be printed in an unlimited number - Bitcoin has a certain number of coins. These are for me the most important motivating reasons to buy bitcoin whenever possible. These are the main arguments against the "wise men" who claim that bitcoin is scam.

[crustycrab666]

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In the end, Bitcoin will become Gold's successor as people will use it in times of need. The collapse of world's economic system will happen soon, paving the way for widespread adoption of Bitcoin and other cryptocurrencies. With the next halving just 2 months away, prices might rise a little in terms of Fiat. But even if everything remains the same, Bitcoin will always be there as an alternative to Fiat that's censorship-resistant giving you complete control of your money no matter what happens in the mainstream world. Just my thoughts

The world is dynamic and constantly changing to find an effective system. Cryptocurrency, especially bitcoin offers many opportunities, we can do many things including trading, investing, and making payments (although limited) with only one component. Very effective right?
Today even Bitcoin is a valuable investment tool, like gold, but with more extreme price changes.

[Spaffin]

As always, this issue gives rise to a rather active discussion between Bitcoin supporters and skeptics.  but the fact is that Bitcoin really has a lot more value than other currencies.  First of all, BTC for the possibility of using it as a means of payment, as well as fiat funds, but only the value of fiat currencies is supported thanks to the government, whose actions often provoke inflation.  and the value of Bitcoin lies in its code, as well as in its scarcity.  Perhaps it is because of this that many users call Bitcoin digital gold. I think that people will understand the importance and value of bitcoin in the future, when their savings will no longer depreciate, as is happening now due to the increase in the mass of paper money.

[Abiky]

The world is dynamic and constantly changing to find an effective system. Cryptocurrency, especially bitcoin offers many opportunities, we can do many things including trading, investing, and making payments (although limited) with only one component. Very effective right?
Today even Bitcoin is a valuable investment tool, like gold, but with more extreme price changes.

Despite naysayers' comments, Bitcoin has been alive and running for 11 years since inception. It's always been valuable because of its decentralized and censorship-resistant qualities. Not to mention, Bitcoin is a deflationary cryptocurrency while Fiat is not. It's the leading cryptocurrency on the market, where most (if not all) altcoins depend on it to survive in the long term. Despite its slow transaction confirmation times and high fees, Bitcoin is still a useful cryptocurrency for cross-border payments worldwide. With the Lightning Network, people can finally enjoy instant transactions at a fraction of the cost.

Given that Bitcoin is completely independent from the world's monetary system (sort of), many people compare it to traditional Gold. It'll never go to zero in price, because of the way it was designed. Besides that, it's the most widely-adopted cryptocurrency in the mainstream world. Anyone saying otherwise is simply a true hater of Bitcoin. Warren Buffet and other wealthy people worldwide are against Bitcoin, but that's because they don't understand its true value yet. Eventually, this generation be left behind as "millennials" will embrace crypto and Blockchain tech more thoroughly. Physical Fiat will phase from existence, paving the way for CBDCs. As long as there is demand for Bitcoin across the market, it'll always have value. Just my thoughts

[shield132]

I'm not gonna write typical answer like others...
Value of something is psychological factor in any way. If you teach me that stone has value and everyday I see that, for me it will become value. What's cash? Paper money + some costs of everything associated to printing process. So with that logic, 50$ and 100$ has the same value, what differs them is the number shown on paper, nothing more. If we see 100, we think it has value of 100$ and so on. But everything isn't like that, economics plays important role too and combination of economics, political stability, people's education and almost combination of everything that happens in this world, gives value to our currencies and everything.
But when we talk about bitcoin, yeah, there are some different and important factors too. When calculating of bitcoin's price, mining profitability matters too, that's why people are waiting so positively for halving. On another hand, even this process is psychological factor too, people think that price will rise because of this and in reality nothing happens itself, we make this reality. Bitcoin will have zero value if one day people wake up and discovered that they don't have access to their wallets. So again, psychological aspect plays huge role too. Bitcoin has zero value for old person who knows nothing about internet and computer and don't have enough possibility to learn it because of age.

[gundala]

Prices are formed due to demand.

~So again, psychological aspect plays huge role too. Bitcoin has zero value for old person who knows nothing about internet and computer and don't have enough possibility to learn it because of age.

Exactly. The psychological aspect does control an important role, often the FOMO will strengthen if there are good rumours and news, especially if it offers a big advantage.
Especially when it was a pioneer in the formation of a new investment system and supported by unique and functional technology. That is why every product has a target consumer. In the digital age, of course, we will be out of date if we don't keep up with technology.

[bearexin]

It has been discussed a lot of times, but you're still right about that, having scarcity and utility gives it value. Another thing that matters a lot is the demand, because if there is no demand for it, then it's going to fail. Imagine having supply but there is no demand, lol, the product will be as good as dead.

So, it's very important that there be a demand, and as long as the demand keeps on increasing the price will as well be increasing. And the reason scarcity is important, after the halving we are going to see a reduction to supply and the demand will be higher than the supply, which will lead to a very high price

[TheGreatPython]

I think a lot of people used to fail this and I don't know why. You are right though. The way it was explained on the Bitcoin blog is that the value of bitcoin is backed by mathematics, and is all about the trust we have in it. So, that's the utility you have mentioned. If we as the people do not trust it and we decide to drop or from investing in it, then bitcoin is going to fail. So, we the community are the ones that are creating the value and backing Bitcoin. Some people usually get this wrong at times.

In other words, when someone is ready to give something a price then it will get that value. When someone will be ready to buy by convincing the seller? Only when the buyer is confident about selling it again for profits. This is what happening exactly with all commodities and with bitcoin as well.

[Skieleton]

Why bitcoin has value. Decentralized and independent ...
 - It means that no governments, institutions or banks exercise power over him. They do not affect its emission, i.e. they cannot be "printed". The structure of botcoin has no one above him who would have a direct impact on its value. Easily accessible
- You have access to it wherever the Internet is. You do not need to log in to an external website. All you need is an application installed on your computer or smartphone. It's easy to replace
- You can do it on cryptocurrency exchanges, through an exchange office or directly at an ATM. Exchange for FIAT currencies is quick and immediate. Global and universal
- It is available all over the world under the same name and anyone who is able to invest in it can become its user. Anyone can check their source code and contribute to its improvement. Useful
- You can pay with it. Currently, more and more retail or service outlets accept payment in this currency. You can also have it as an investment asset. Easily transferable
- You can quickly send it from one place to another (make a transfer) without intermediaries such as banks. Thanks to this, the commissions are microscopic and without additional fees. Safe
- It's hard to fake it, because bitcoin is a combination of complicated mathematics and cryptography.

I think that's enough, right ?

[marcayden]

Bitcoin really obtains their value from the fact that there is limited supply, heightened demand, and utility (for investments or transaction purposes).

Unlike major currencies around the world where the central banks have in place a form of monetary policy to control the supply of currency in circulation, bitcoin and blockchain is wholly dependent on a decentralised network whose performance is totally reliant on market forces.

Also, given the increasing acceptance of such digital assets in societies, this legitmises the coin as having intrinsic value (currency only has this as it is legal tender aka the government putting their chop/backing on the currency).

There are governments around the world who are afraid of this and accuse cryptocurrencies as a way to launder money, for illicit activities, etc. But their main concern centers heavily on tax-evasion - our government earns its keeps via taxes (more often than not).

So hold on to your bitcoins if you have any, and watch it go up up up!

Hope this helps!

 

[BD Money365]

Obviously bitcoin have value because everyone accept bitcoin.they are big business in bitcoins.when you take restricted complete in the day by day rising identity value will take off higher.I am positively about bitcoin consequences that as numerous intimates comes in this grassland fee will turn boom high. One day bitcoin value will be extremely massive at that moment a person thinks.
So bitcoin is riches of future,money of internet,money of new generation,money of elegance that why bitcoin experience value.

[BennyK]

Anything with value means it has a level of demand for mankind. Whatever is of demand has an important role to play in the wake of life. Bitcoin is a classical example because it solves a revolutionary payment system. Unlike the old payment method with paper money, Bitcoin offers anonymous transactions which helps users to purchase or send funds across borders without limitation.

[Zeke_23]

Bitcoin has value because bitcoin can also do what money can do. It can use as a form of payment where people find it useful in terms of buying or selling. Its value can be determined depends on how many people are willing to accept it as payment, the more people adopt it, the more its value will increase.