Why Does Bitcoin Have Value?

[Abiky]

To my opinion the answer is very simple, people are willing to pay to get the Bitcoin. So, Bitcoin has the value and defined specific price according to the demand and supply ratio at the market. As long as there are users who pays for Bitcoin, trade with it and use it as a payment method Bitcoin will have the value, just like any other currency, asset or anything else that is valuable.

Besides supply and demand, Bitcoin has value because it's decentralized and censorship resistant. It's those qualities which make Bitcoin a unique type of currency in the mainstream world. People who invest in Bitcoin can feel confident that their money will safe against third-party intervention. No government can freeze or manipulate your funds, unlike traditional Fiat currencies of today. As long as Bitcoin remains decentralized, people will consider it a valuable cryptocurrency. Usability and mainstream adoption are key towards a sustainable price in the long term.

I've seen many cryptocurrencies with limited supply on the market. Most of them have failed because they were either too centralized or were unable to provide real use cases for the mainstream world. It's a combination of mainstream adoption and decentralization for a cryptocurrency to be considered valuable worldwide. Despite some people saying that Bitcoin is made of "thin air", that's not really the case. Miners waste real world resources in order to "mint" new coins on the Blockchain. This, alongside a constant reduction in the block reward, makes Bitcoin similar to Gold. Let's hope that Bitcoin remains a valuable cryptocurrency for the rest of its lifetime. Just my thoughts

[dersu18]

Bitcoins have value because they are useful as a form of money. ... In the case of Bitcoin, this can be measured by its growing base of users, merchants, and startups. As with all currency, bitcoin's value comes only and directly from people willing to accept them as payment and also Bitcoin offers an efficient means of transferring money over the internet and is controlled by a decentralized network with a transparent set of rules, thus presenting an alternative to central bank-controlled fiat money.

[The cure]

For me, bitcoin has value because many people believe in its ability. And alot of people gets interested and others want to learn how to trade and earn from it, and also how to invest in it for the future.
As long as there are people who use bitcoin and some accept it for paying method, it will continue to have value.

[ghost424]

Another reason is because of its use. Bitcoin has really evolved from a long way and we can actually see its achievement throughout the years. One thing that we can never forget about Bitcoin is that moment when Bitcoin was used to buy Pizza's. We know that it has value at that time and it was low BUT as time passed by, when people realized that they can gain Bitcoin through some work (mine it, promote it, provide service) and other things. Bitcoin really changed the Cryptocurrency industry and placed it to be a recognizable one. If we understand how Bitcoin works then that is how we see its value.

[Triffin]

For me, bitcoin has value because many people believe in its ability. And alot of people gets interested and others want to learn how to trade and earn from it, and also how to invest in it for the future.
As long as there are people who use bitcoin and some accept it for paying method, it will continue to have value.

Agree with you now so many people are agree to invest in bit coin as it has profitable investments ways and people get opportunity to get rich faster than any other business and it has good marketing value also the price is volatile it rises so high. Bit coin is now being trade by so many traders it makes good profit in trading field as well it can be use as currency's as well.

[DoublerHunter]

For me, bitcoin has value because many people believe in its ability. And alot of people gets interested and others want to learn how to trade and earn from it, and also how to invest in it for the future.
As long as there are people who use bitcoin and some accept it for paying method, it will continue to have value.

Agree with you now so many people are agree to invest in bit coin as it has profitable investments ways and people get opportunity to get rich faster than any other business and it has good marketing value also the price is volatile it rises so high. Bit coin is now being trade by so many traders it makes good profit in trading field as well it can be use as currency's as well.

^ Just because bitcoin was already on medium exchange with a fixed amount only. So, this can be measured by its growing base of massive adoption and the value it matters on the demand and supply of bitcoin. This is probably simple answer for you to understand but it has meant a lot.
Nevertheless, I can't give a further explanation but here is a good site that probably gives you an idea of how it does happen, why does bitcoin have a value.
See this, https://bitcoin.org/en/faq#general.

[dcybergeek]

Bitcoins have value because people are willing to pay for them (and of course, people are willing to pay for them because they have value). You have some companies dealing in bitcoins (i.e. selling and buying), and some places only accept bitcoins. Since some places accept it, there is a market for it. Since there is a market for it, it has value.

[Abiky]

Another reason is because of its use. Bitcoin has really evolved from a long way and we can actually see its achievement throughout the years. One thing that we can never forget about Bitcoin is that moment when Bitcoin was used to buy Pizza's. We know that it has value at that time and it was low BUT as time passed by, when people realized that they can gain Bitcoin through some work (mine it, promote it, provide service) and other things. Bitcoin really changed the Cryptocurrency industry and placed it to be a recognizable one. If we understand how Bitcoin works then that is how we see its value.

Exactly. The mere fact that Bitcoin is usable, explains why it's considered to be extremely valuable among everyday people. Besides that, Bitcoin is the most decentralized cryptocurrency in the world. No other cryptocurrency compares to Bitcoin in terms of security/reliability. As long as Bitcoin stays this way, it'll continue to be a valuable asset that can be used as a store of value. While naysayers often say that Bitcoin is "made out of thin air", we all know that's not the case. Miners continuously spend real-world resources (mostly energy) in order to "mint" new Bitcoins. With a reduction in block reward every 4 years, it's expected that Bitcoin will become more valuable in terms of USD.

Nonetheless, anyone can create a cryptocurrency. But if that cryptocurrency doesn't provide real use cases for the mainstream world, it'll be worthless. I've seen many cryptocurrencies that went to $0 in price because they were unable to provide usability to everyday people. What makes a crypto valuable is its usability, ecosystem of merchants, businesses, apps, and most of all, decentralization. And so far, Bitcoin has been delivering as promised day after day, becoming the most valuable cryptocurrency in the world today. Just my opinion

[kezinaur14]

Personally, I've always had bitcoins to USE, I'm not a big time hodler (well maybe lately I'm kind of hoarding a bit more than previously), but my main purpose when using bitcoin is useability. I have friends in different parts of the world I can quickly make business with if I need to, or send money to / receive money from, always through bitcoin. It amazes me how banks haven't realized the need for a simple "2 click" solution to send money anywhere in the world with reasonable fees. (No, western union is NOT a good alternative). I think for this reason bitcoin will always have a use case, at least for me.

[ViqRa]

It all comes down to one thing: Trust. - When Nixon got rid of the Gold standard the backup value of the USD got taken away as well. Since then, the Dollar is just as much as every other currency on the planet only valuable because of the trust in it. You can trust your local backery that you get goods with the value of 10.- if you pay 10.- The trust in the Dollar got damaged by the debt economy and its effects on the US market, now losing its hegemonial status to China again. 1.5B people "trust" the Yuan, but it is again just a currency based on trust.
The main difference between the trust to fiat and Bitcoin is that BTC also represents hope, liberty, privacy and a new way of doing things. It´s somehow an exciting new toy for mankind

I agree with the Trust part and I would add the relative small adoption it has too. People trust that BTC won't disappear or go to $0 overnight, therefore some use it as a SoV.

One could add into account the "branding", the Bitcoin name itself, but I guess this is part of adoption.

[famososMuertos]

Actually as a bitcoin user it is one of the frequently asked questions, which you get all the time, important even among people who constantly use bitcoin and like it.

It is also an introspective question, that has not happened to you! anyway, sometime as in this case you must have read it, listened to it, it is a magical question, every time it happens it is like feeding the bitcoin's ego, the question itself is affirmative, that is to say , you no longer have doubts about the existence of bitcoin, perhaps the people who ask, may not have the slightest idea of ​​how it works, for example, knowing a little or nothing about it in the OP, but they are interested in knowing more.

It does not matter if you are a critic of bitcoin, if you are a person who follows bitcoin technically, if you are a bitcoiner or if you simply like bitcoin, over time you learn, as many have said, trust, when so many people agree over the years and more neophytes than experts keep coming, its value rises.

[charlemagne_15]

Bitcoin has a value due to the characteristics it has namely scarcity, usability, and maybe transferability. Scarcity because bitcoin undergo supply and demand from its users. Usability because we know that it somehow serves as a form of money. It can be used to invest, trade or any related way of earning. Lastly, transferability for it can be converted into any local currency of a person. People would not be still at this community and believe in cryptocurrency if bitcoin doesn't hold any value.

[iTradeChips]

Yeah, you are right. Bitcoin does have value because it is scarce and has utility. But, you forgot the main thing. Demand. Bitcoin and other crypto currencies have demand for which they also have a value. As long as there is a demand for bitcoin, there will be a price. With the demand rising the price also starts to rise. But, as the demand falls and goes to zero, the price will also eventually fall and then become valueless even though if it is scarce and has utility. Look at those coins that have failed. They now worth almost nothing since they don't have any demand.

I was actually interested on that aspect on demand. It is like getting people to be interested on something that is not tangible in the physical world and then it already has value. I am wondering if there are similar events in the world history comparable or similar to the bitcoin phenomenon that started in the 2000s. The closest that I can think of is the Tulip Mania bubble that happened in the 1630s where the Tulip flower suddenly became valuable and there was very high demand. Sceptics even called Bitcoin "Tulip Mania 2"*.

* - https://theconversation.com/tulip-mania-the-classic-story-of-a-dutch-financial-bubble-is-mostly-wrong-91413

[lumeire]

Because Bitcoin and other digital currencies have been touted as alternatives to fiat money

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.

[HunterUnchained]

Like anything in life that has value, it is something people will be willing and open to offer a certain amount for due to its supply and demand ratio. Bitcoin is a digital asset used for several purposes and as such, people are willing offer a certain amount in exchange for bitcoin making it valuable. Of course, its value depends on how much people are willing to pay for it. Also, the supply is another determinant factor for why it is valuable.

[amnakhan2020]

Gold is not just store of value, it has use case, and in fact it had use case before it was used as money. Bitcoin cannot be just store of value, nothing can be JUST store of value as value comes from use case. Bitcoin is a system which was created to solve major problem that exists with existing banking and monetary system:

1. to replace central banks from having monopoly of supply of money by creating decentralised creation of money (good money) which is limited in supply and cannot be faked.
2. to replace centralised payment system of banking institutions, which are acting as intermediaries. Bitcoin system is natively Peer-to-Peer payment system, why its called P2P Digital Cash, and it needs no intermediates and there are great benefits to having such system used globally by everyone.

Bitcoin BTC is a blockchain that was original implementation of this Bitcoin system, and has since been hijacked by bankers through Blockstream corporation who took control of BTC code and prevented it scaling (by not allowing increase of capacity of the Bitcoin system, which is called on-chain scaling)... which gave need for all the true Bitcoin system supporters and its ecosystem, to create a split in the chain (a hard fork of the blockchain) creating 2 separate blockchains... which are now Bitcoin Core's version that took over BTC ticker, and Bitcoin Cash that uses BCH ticker.

[Bect1936]

People and traders are putting the value of Bitcoin, they want to buy it and the prices are constantly changing>
you can make a profit on the same day and withdraw your profits.
you will buy rich and back to invest. invit your frind and family, they will invest and both scarcity and utility.
hard limit of 21,000,000 bitcoin units it multiply your profits.

[Asuspawer09]

People and traders are putting the value of Bitcoin, they want to buy it and the prices are constantly changing>
you can make a profit on the same day and withdraw your profits.
you will buy rich and back to invest. invit your frind and family, they will invest and both scarcity and utility.
hard limit of 21,000,000 bitcoin units it multiply your profits.

Yeah, its the demand that putting the value in bitcoin if there is no demand in bitcoin market price is going to go zero or if there is a high demand market price will increase.

Bitcoin is just a digital currency so there is no physical coin or something, it's more like of supply and demand thing that's giving value to it. So the more investors the more demand in the market price and the higher the value of bitcoin.

[Swordsoffreedom]

People and traders are putting the value of Bitcoin, they want to buy it and the prices are constantly changing>
you can make a profit on the same day and withdraw your profits.
you will buy rich and back to invest. invit your frind and family, they will invest and both scarcity and utility.
hard limit of 21,000,000 bitcoin units it multiply your profits.

Yeah, its the demand that putting the value in bitcoin if there is no demand in bitcoin market price is going to go zero or if there is a high demand market price will increase. Bitcoin is just a digital currency so there is no physical coin or something, it's more like of supply and demand thing that's giving value to it. So the more investors the more demand in the market price and the higher the value of bitcoin.

I'm totally agree with your thought. Economists say that

"as long as there is demand for a product or commodity, its price will go up."

We all know that now the demand of BTC is much higher, and its demand is increasing day by day. This is why the price of BTC is so high now. If ever there is a cryptocurrency that will become more popular than BTC then the demand for BTC will be decreased, which is never going to be happened. and if the demand for BTC will decrease then the price of BTC will also go down.

[Benefactor]

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.