Why is bitcoin worth so much ?

[spy100]

Why is bitcoin worth so much ?

Bitcoin price $9,442.51 coinmarketcap
Ethereum   $236.39    coinmarketcap


1.Btc transaction fees are high
2.Btc takes like 10 minutes - 1 hour to confirm
3.It has no smart contracts support
4.No tokens support
Etc etc ...

Where does the value of bitcoin come from ? I don't understand the logic behind the valuation ...

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Here is another thing i found :

Even when the last bitcoin has been produced, miners will likely continue to actively and competitively participate and validate new transactions. The reason is that every bitcoin transaction has a small transaction fee attached to it. These fees, while today representing a few hundred dollars per block, could potentially rise to many thousands of dollars or more per block as the number of transactions on the blockchain grows and as the price of a bitcoin rises. Ultimately, it will function like a closed economy where transaction fees are assessed much like taxes

Source: https://www.investopedia.com/tech/what-happens-bitcoin-after-21-million-mined/

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[Naida_BR]

It is the king and the most known widely accepted cryptocurrency in the market.
You are missing that all coins in the industry are paired with Bitcoin. This means the there is high volume and high demand for Bitcoin every time someone wants to buy any altcoin.

[so98nn]

Ethereum has virtually unlimited supply while BTC is capped to 21 million coins.

Out of this 18,404,300 BTC are in circulation. If you understand the basic principle of Demand and Supply then it would be easy to grasp this. The demand is heavy for bitcoin while it's supply is limited.

After each 4 years it will go under halving thus reducing its rewards per block, making it more costly to mine for miner. Since it use Energy to mine via miners, the energy required is now more and more.

This is converted into money later when people buy it.

It will keep rising since energy requirements to mine the coin will keep rising throughout the time, and also supply will keep reducing.

Moreover, you get value because investors keep buying it.

[spy100]

Ethereum has virtually unlimited supply while BTC is capped to 21 million coins.
...Moreover, you get value because investors keep buying it.

But if you have 1000 usd and you want to transfer it to another person i don't get it how bitcoin can help me ...

Example i want to send money to a person B in another country

I Person A have 1000 usd
To exchange it it cost me around 5% - 8%
Now i have   920 usd in btc form ...do to fact bitcoin is so volatile i could lose another 50 usd in 10 minutes or gain 50 usd ...just speculation
I send it to person B  a small transaction fee is taken
Now person B has to exchange it to Fiat he got to pay trader / exchange platform another 5%-8%
After exchange person B has left around 846.4 usd

That's a 15.36 % loss just from exchange cost
More expensive the WU,direct bank transfer,paypal etc ...

[Assface16678]

The bitcoin already gained a lot of reputation into the world and community of the cryptocurrency because from the previous years it gives a good market income and outcome to the whole market in the start of the bitcoin, only a few people realize the benefits of it and after that, it gained a lot of popularity because of the benefits of it like the security, transparency, efficiency and more which is good to an investor or a people who want to save their money.

You can spend all of your bitcoin today in different ways like first on using gambling, investment, and trading but today not only limited by that because in some parts of the world there are some stores accepting the use of the bitcoin payment. Also by the time goes by the number of people supporting the bitcoin are increasing which is good to make more increase in the market price of the coin.

[Vanessamix]

Ethereum has virtually unlimited supply while BTC is capped to 21 million coins.
Out of this 18,404,300 BTC are in circulation. If you understand the basic principle of Demand and Supply then it would be easy to grasp this. The demand is heavy for bitcoin while it's supply is limited.
After each 4 years it will go under halving thus reducing its rewards per block, making it more costly to mine for miner. Since it use Energy to mine via miners, the energy required is now more and more.
This is converted into money later when people buy it.
It will keep rising since energy requirements to mine the coin will keep rising throughout the time, and also supply will keep reducing.
Moreover, you get value because investors keep buying it.

Basically - the supply of btc won't ever grow
on the other side demand was growing or at least staying still this whole decade

[so98nn]

Ethereum has virtually unlimited supply while BTC is capped to 21 million coins.
...Moreover, you get value because investors keep buying it.

That's a 15.36 % loss just from exchange cost
More expensive the WU,direct bank transfer,paypal etc ...

Impossible.

15% loss in single transaction will never happen. There is no such movement in bitcoin where it moved up and down in its price with so much difference.

Also if you send 1000 USD to Person B, then you actually input 1000 USD in amount to be sent while the TX Fees are added differently.

In the screenshot below you will see how it works. YOU will pay the FEES, and Person B receives 1000 USD not less and not more.




The Volatility that you talking about is not that hard. User can always cashout as soon as they receive the 1000 USD.

More expensive the WU,direct bank transfer,paypal etc ...

Everything has their pros and cons.

Banks can track you, track your transactions and identity. You have limits on your transaction.

In case of crypto that is reverse and more confidential. May be that evens it out.

[sheenshane]

The trust that has been gained by Bitcoin in millions of traders and miners that altogether have imparted on a cryptocurrency and Bitcoin is the largest cryptocurrency that the value determined by the demand and supply.

Now, if you worried about the transaction fees, it is natural in Bitcoin to have fees to pay miners every time transaction to be confirmed.
I think you need to understand the word volatility that makes Bitcoin worth it so much to the eye of crypto enthusiast's holders that choose to hold Bitcoin than spending. Others also think that through the decentralized infrastructure of Bitcoin by making direct money transfers quick and have transparency are the most they like, and the fee is doesn't matter to them, IMO.

However, if everyone knows how to use Lightning Network to apply in Bitcoin transactions, we can help to lessen the fees and have faster transactions.

[Twentyonepaylots]

Ethereum has virtually unlimited supply while BTC is capped to 21 million coins.
...Moreover, you get value because investors keep buying it.

But if you have 1000 usd and you want to transfer it to another person i don't get it how bitcoin can help me ...

Example i want to send money to a person B in another country

I Person A have 1000 usd
To exchange it it cost me around 5% - 8%
Now i have   920 usd in btc form ...do to fact bitcoin is so volatile i could lose another 50 usd in 10 minutes or gain 50 usd ...just speculation
I send it to person B  a small transaction fee is taken
Now person B has to exchange it to Fiat he got to pay trader / exchange platform another 5%-8%
After exchange person B has left around 846.4 usd

That's a 15.36 % loss just from exchange cost
More expensive the WU,direct bank transfer,paypal etc ...

So why do you need to transfer in cryptocurrency if you have these ( WU, dbt, paypal) to transfer with? Just to clarify, you don't necessarily use cryptocurrency to transfer funds if you have more platform/app services to do it with so much convenience. Indeed that if takes more to transfer via crypto since there is conversion rate fee and transaction fee that's why you need to consider this process before transferring funds.
People are just using crypto for others not to track their transaction, the privacy  

[Juggy777]

Why is bitcoin worth so much ?

Bitcoin price $9,442.51 coinmarketcap
Ethereum   $236.39    coinmarketcap


1.Btc transaction fees are high
2.Btc takes like 10 minutes - 1 hour to confirm
3.It has no smart contracts support
4.No tokens support
Etc etc ...

Where does the value of bitcoin come from ? I don't understand the logic behind the valuation ...

@spy100 this topic has been discussed multiple times over the years now, and you need to understand that Bitcoin is the original crypto, and rest coins like Ethereum are alt coins, and therefore people will never consider them above bitcoins.

The trust that has been gained by Bitcoin in millions of traders and miners that altogether have imparted on a cryptocurrency and Bitcoin is the largest cryptocurrency that the value determined by the demand and supply.

Now, if you worried about the transaction fees, it is natural in Bitcoin to have fees to pay miners every time transaction to be confirmed.
I think you need to understand the word volatility that makes Bitcoin worth it so much to the eye of crypto enthusiast's holders that choose to hold Bitcoin than spending. Others also think that through the decentralized infrastructure of Bitcoin by making direct money transfers quick and have transparency are the most they like, and the fee is doesn't matter to them, IMO.

However, if everyone knows how to use Lightning Network to apply in Bitcoin transactions, we can help to lessen the fees and have faster transactions.

@sheenshane you have explained very well about the fees issue, and in my personal opinion it totally depends when you transfer as I have personally transferred $100+ and paid few cents in fees, and further I have seen whales transfer big amounts and pay small fees for their transactions using bitcoins.

Sources:

https://www.investopedia.com/articles/investing/031416/bitcoin-vs-ethereum-driven-different-purposes.asp

https://www.investopedia.com/terms/b/bitcoin.asp

https://thenextweb.com/hardfork/2019/07/29/bitcoin-whale-moves-468-million-crypto-fortune-for-less-than-400/

Past discussions:

https://bitcointalk.org/index.php?topic=2377948.680

https://bitcointalk.org/index.php?topic=2214251.740

[gentlemand]

Because it has earned the most trust. It's the most tested, most battered, the oldest, it had the purest launch, it's the best developed, the most stable.

That's what shitcoin fans can never admit to themselves, or cannot begin to conceive of. No one gives a fuck about one second block times and 'partnerships' if there isn't any trust. Without trust it's just meaningless software which is what most of them are.

Until someone's figured that value is nothing to do with technicalities and all to do with deeper human factors they're not going to get far.

[NASdaq]

Because btc was first. Its like question why apple devices cost so much. Status, brand, fanbase, etc

[spy100]

Banks can track you, track your transactions and identity. You have limits on your transaction.

In case of crypto that is reverse and more confidential. May be that evens it out.

I mined with my pc around 50 btc when bitcoin was worth nothing ... i sold them for around 0.2 cents / btc ...people wouldn't even want to buy them back then ...so what increased btc value so much ... makes no sense ...

[415jeremy]

Bitcoin is the most trustworthy cryptocurrency. It's limited, maybe it's the key feature. 

[coolcoinz]

Since you've pointed out some "issues" with BTC, I'll give you some points as well:
-the first cryptocurrency
-the most well known cryptocurrency
-the most trusted one
-the most accepted one (highest market penetration)
-decentralized
-altcoins follow its price, so they depend on it

Enough?

[shushu9977]

Actually,  Bitcoin transaction is so high also to me. But, otherwise time and otherthing are not bad. I think, it is more comfortable than the other medium like bank or other system. In future, it will be the most famous, trustable, valuable and promising for human life.        

[spy100]

Since you've pointed out some "issues" with BTC, I'll give you some points as well:
-the first cryptocurrency
-the most well known cryptocurrency
-the most trusted one
-the most accepted one (highest market penetration)
-decentralized
-altcoins follow its price, so they depend on it

Enough?

ah the old liquidity and trust... but still there are other stuff in this world that share the same pro's but they are not this valuable

Gold is liquid it's money and commodity  but is worth less then bitcoin ...

How in the world btc became so valuable what was the spark ... ?

[gentlemand]

Gold is liquid it's money and commodity  but is worth less then bitcoin ...

There are around 6-7 billion ounces of gold in the world. There are 21 million bitcoins. Do the math. Gold overall is worth much more. Not every system has the exact same individual unit pricing or the same number of units.

[Findingnemo]

Why is bitcoin worth so much ?

Bitcoin price $9,442.51 coinmarketcap
Ethereum   $236.39    coinmarketcap


1.Btc transaction fees are high
2.Btc takes like 10 minutes - 1 hour to confirm
3.It has no smart contracts support
4.No tokens support
Etc etc ...

Where does the value of bitcoin come from ? I don't understand the logic behind the valuation ...

Have you ever wondered that why the price of gold is so expensive whereas the silver is very cheap since both has same level of difficulty in finding?

Bitcoin have limited supply, when more people used bitcoin means the price will increase,where as etherum can be mined forever so not ebery people have interest on mining it or holding it in huge amount so.price is cheaper than bitcoin.

[Sanugarid]

There are questions like this that have been asked many times before, some of us are confused why bitcoin is so popular, valuable and people go crazy over it, well to be exact why bitcoin is valuable because it is first currency that has been introduced to us, but then why? of course people who interacted with it first build its own reputation along the way. Bitcoin is designed not alike that much to any cryptocurrency that we have now in the market, the 21m limited supply says it all. In short, bitcoin is valuable because it is bitcoin