Does Bitcoin have any real value?

[BlackHatCoiner]

Now, if I were to sell you something you cannot live without, like water, the base value constants become the supply and demand and the work I need to do in order to get to that water, get it out of the well, bottle it up and deliver it. This becomes a minimum in price.

We don't disagree, I'm just pointing you out that it's not the same with Bitcoin, because those sudden drops in either the price or the required computational power can redefine the cost.

If 1 BTC is valuated at $40,000, but there's a sudden Chinese black out which affects lots of Chinese pools that contribute by owning a significant percentage of the network's hash rate, the cost of producing 1 BTC will decrease once the difficulty re-targets. But, the price has no reason to change, because the supply has remained the same (it's inflating by 6.25 BTC every ~10 minutes) and so is the demand.

Another example, but with change in demand: If there's a intensive trend of selling, which essentially causes drop in the demand, the equilibrium price will decrease. This, as a consequence, might discourage some miners, temporarily, to continue mining, because their income might have dropped by a lot. It is reasonable to assume that the cost of production remains the same, but it's not. In the next difficulty epoch, difficulty will lower which will decrease the cost.

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[Newlifebtc]

btc is valuable & doesn’t need to backed by any physical assest. Its enough for itself. people set its value depending on how it is. It has ups and down but has real use too, companies investment making it more valuable. Even so many countries recognised it as valuable. More and more people keep involving, even  it was reached $66k ATH, what else you want? Now its your choice how you want to use your fund

Bitcoin is a decentralized currency that is not control or manage by the government  before users can earn something good  from it. It pump and dump to help the users to know when to buy bitcoin and when to sell bitcoin to make a passive income at the moment. Bitcoin has helped many people to eliminate poverty from their investment by purchasing bitcoin when the price is low and hold until the price increase higher before you can sell to make a potential income.

yes Bitcoin a decentralized currency but if government of country regulate Bitcoin in which way can we classify it? Do we suppose to call it centralized or is still decentralized currency, their is at a time i saw the new for internet that bitcoin can be regulate so what is the difference between regulating bitcoin and centralizing bitcoin

[EdenHazard]

It has value largely because a lot of people think it has value. Like other commodities, currencies and tradable stuff, if people are willing to pay for it, then it has value. If people are willing to accept it as payment, then it can be used to transfer value. If people are willing to buy and keep it, then it can be used as a store of value.

For now most people tend to treat bitcoin like a gold but a version of high return .

They even know that bitcoin may worth nothing at some point , but they insist to get in and there you go .. the value created in the community and it's getting bigger and bigger.
The real value of bitcoin might be 0 and might be unlimited that nobody can imagined it. That's the charm of bitcoin to have real value.

[24Kt]

It has value largely because a lot of people think it has value. Like other commodities, currencies and tradable stuff, if people are willing to pay for it, then it has value. If people are willing to accept it as payment, then it can be used to transfer value. If people are willing to buy and keep it, then it can be used as a store of value.

For now most people tend to treat bitcoin like a gold but a version of high return .

They even know that bitcoin may worth nothing at some point , but they insist to get in and there you go .. the value created in the community and it's getting bigger and bigger.
The real value of bitcoin might be 0 and might be unlimited that nobody can imagined it. That's the charm of bitcoin to have real value.

Though we have no backing about the value of bitcoin, it is influenced by the supply and demand in the market. And since the adoption is growing, people believe that in the near future, btc will grow its value. Though for a fact, we have no assurance for that to happen. And right now, if you are thinking about its real value, just convert some of your satoshis to your local fiat, and you will already see that btc do have actual value that you can spend with.

[EdenHazard]

It has value largely because a lot of people think it has value. Like other commodities, currencies and tradable stuff, if people are willing to pay for it, then it has value. If people are willing to accept it as payment, then it can be used to transfer value. If people are willing to buy and keep it, then it can be used as a store of value.

For now most people tend to treat bitcoin like a gold but a version of high return .

They even know that bitcoin may worth nothing at some point , but they insist to get in and there you go .. the value created in the community and it's getting bigger and bigger.
The real value of bitcoin might be 0 and might be unlimited that nobody can imagined it. That's the charm of bitcoin to have real value.

Though we have no backing about the value of bitcoin, it is influenced by the supply and demand in the market. And since the adoption is growing, people believe that in the near future, btc will grow its value. Though for a fact, we have no assurance for that to happen. And right now, if you are thinking about its real value, just convert some of your satoshis to your local fiat, and you will already see that btc do have actual value that you can spend with.

Told ya, that's the charm!

The charm of bitcoin to have real value .. those people who knows the whole concept would stick to hold it as long as possible as mathematically they think the price epuld gradually rise despite got mocked many times .. and those believers proved everyone wrong ehen bitcoin continuously breaking the all time high.
The intrinsic value in bitcoin are depends on its ability to create a trusted network based on mathematics , which for newcomers that would considered as based on nothing.

[crussaders1411]

When it was launched in 2009, Bitcoin was said to have only 21 million pieces in stock that would be mined by 2140.
So, a tight supply will make the value of Bitcoin soar if the demand is constant or increases

What makes bitcoin real value.

If fiat money is damaged, then the central bank will destroy it completely and replace it with a new one. Thus, fiat money is no longer legal to be used as a medium of exchange. However, something similar is not happening in Bitcoin. Bitcoin chunks cannot be destroyed as they will continue to be recorded on the blockchain network.

[goldkingcoiner]

Now, if I were to sell you something you cannot live without, like water, the base value constants become the supply and demand and the work I need to do in order to get to that water, get it out of the well, bottle it up and deliver it. This becomes a minimum in price.

We don't disagree, I'm just pointing you out that it's not the same with Bitcoin, because those sudden drops in either the price or the required computational power can redefine the cost.

If 1 BTC is valuated at $40,000, but there's a sudden Chinese black out which affects lots of Chinese pools that contribute by owning a significant percentage of the network's hash rate, the cost of producing 1 BTC will decrease once the difficulty re-targets. But, the price has no reason to change, because the supply has remained the same (it's inflating by 6.25 BTC every ~10 minutes) and so is the demand.

Another example, but with change in demand: If there's a intensive trend of selling, which essentially causes drop in the demand, the equilibrium price will decrease. This, as a consequence, might discourage some miners, temporarily, to continue mining, because their income might have dropped by a lot. It is reasonable to assume that the cost of production remains the same, but it's not. In the next difficulty epoch, difficulty will lower which will decrease the cost.

I can see where you are going with that and what you are trying to tell me however the real question here is whether or not Bitcoin can go to 0. And the answer is no. Because it has an internal value which cannot be denied.

Even if the apocalypse started in 10 minutes or in a long long time from now and nobody wanted or needed Bitcoin anymore in such a reality, nobody would sell it for $0. Even if all hope was lost, they would hold on to their coin in hopes it would rise in price again.

The minimum price, even if it is a low low price, it would still be the minimum due to the minimum effort/money/goods you would have to put in to create a Bitcoin.

Now if EVERYTHING including energy became absolutely worthless in the world, then the base price of Bitcoin would become 0. But thats unrealistic, don't you think?

[BlackHatCoiner]

I can see where you are going with that and what you are trying to tell me however the real question here is whether or not Bitcoin can go to 0.

No, this is not what I meant. I just said that the minimum value of Bitcoin isn't constant, because the cost to produce it constantly changes.

Now if EVERYTHING including energy became absolutely worthless in the world, then the base price of Bitcoin would become 0. But thats unrealistic, don't you think?

Again, the cost of producing Bitcoin isn't strictly connected with the value. There's a demand and a supply. Whether the energy rises to the top or falls to the bottom, the only thing that will change is the cost of producing Bitcoin. (ceteris paribus)

Energy can't worth $0. If we assume that the price of all kind of energy sources fell by 50%, then it'd suddenly become much more profitable to mine bitcoins. That would mean more computational power willing to be used. As a result, difficulty would skyrocket.

[zaesvlas]

I have a simple question for the author of the topic - did he try to buy bitcoin at all? If so, what did he pay for bitcoin? If money, then the issue can be considered resolved.

[numberslacey]

I think that the very meaning of "value" is and ways has been nothing more than a single word without a real physical meaning. Value is an abstract feeling. A feeling of desire. Biologically, our desires are wired into us and always come down to necessary human requirements like food, love, safety and so on. So value is whatever we feel like it is. However if you are talking about monetary value, electricity, miners, internet and rent is not free. So making Bitcoin costs money.

Those Bitcoin mining costs are the non speculative, translated value.

You are saying that we give value to the things that we require for living? ‘Cuz the examples you cited are important for survival.

But in that case, things would cost about the same, right? If things have the same functionality, why should they cost differently?

Just because we are paying a lot of money for something, it is valuable? Expensive doesn’t always mean valuable. For instance, water is the cheapest in most countries but most valuable in life. My question is about the real world usage of bitcoin, not how expensive it is. I hope you got your answer.

[jhonjhon]

Bitcoin's value is a function of this scarcity. As the supply diminishes, demand for cryptocurrency has increased. Investors are clamoring for a slice of the ever-increasing profit pie that results from trading its limited supply.

Bitcoin also has limited utility like gold, the applications for which are mainly industrial. Bitcoin's underlying technology, called blockchain, is tested and used as a payment system. One of its most effective use cases is in remittances across borders to bump up speed and drive down costs. Some countries, like El Salvador, are betting that Bitcoin's technology will evolve sufficiently to become a medium for daily transactions.

Bitcoin does not have the backing of government authorities, nor does it have a system of intermediary banks to propagate its use. A decentralized network consisting of independent nodes is responsible for approving consensus-based transactions in the Bitcoin network. There is no fiat authority in the form of a government or other monetary authority to act as a counterparty to risk and make lenders whole, so to speak, if a transaction goes awry.

ref. https://www.investopedia.com/ask/answers/100314/why-do-bitcoins-have-value.asp

[Cryptomiles1]

Bitcoin is not backed by any physical asset like Gold nor by any fiat currency. It makes me wonder if I should invest/trade in Bitcoin or not?

In what evidence do you really want?
you heard about it and you have as well used it for transactional purposes and people trading and investing in bitcoin all over the world and yet you needed any physical asset backend it.
Well to those who really knows the values don't wait to be, but have already made their investments, with the reduction of bitcoin the scarcity it becomes so the increase in price.

[zaesvlas]

It is important to understand that the price of bitcoin is fully justified. Otherwise, people would simply not buy it.

[horrifiedx1]

Bitcoin is not backed by any physical asset like Gold nor by any fiat currency. It makes me wonder if I should invest/trade in Bitcoin or not?

In what evidence do you really want?
you heard about it and you have as well used it for transactional purposes and people trading and investing in bitcoin all over the world and yet you needed any physical asset backend it.
Well to those who really knows the values don't wait to be, but have already made their investments, with the reduction of bitcoin the scarcity it becomes so the increase in price.

not because of the reduction, but by looking at today's minimalistic bitcoin users around the world, this opens up huge opportunities for profit. if you are in doubt, then study it first, my advice is not to waste the opportunity while we already know him now, or later we will only be spectators, and regret not taking action immediately.the value contained in bitcoin only comes from supply and demand

[goldkingcoiner]

You are saying that we give value to the things that we require for living? ‘Cuz the examples you cited are important for survival.

Everything that we value is essential to our survival. Thats where our desires stem from at the deepest level. Wanting food, water, happiness or anything else is rooted into the needs from our biological evolution. You will not find a single person in this world who wants absolutely nothing. Except maybe someone who is so psychologically or physically damaged that he cannot be considered as someone who cares about life anymore.

Every desire is basically a derivation of those basic needs. Only in a more complicated fashion.

For example, Gaming: It is just the artificial dopamine rush our bodies crave for because we are programmed to crave for dopamine.

[mildmanneredsuffering]

You are saying that we give value to the things that we require for living? ‘Cuz the examples you cited are important for survival.

Everything that we value is essential to our survival. Thats where our desires stem from at the deepest level. Wanting food, water, happiness or anything else is rooted into the needs from our biological evolution. You will not find a single person in this world who wants absolutely nothing. Except maybe someone who is so psychologically or physically damaged that he cannot be considered as someone who cares about life anymore.

Every desire is basically a derivation of those basic needs. Only in a more complicated fashion.

For example, Gaming: It is just the artificial dopamine rush our bodies crave for because we are programmed to crave for dopamine.

fortune jack robs people. you are promoting crime. anything you say is from the mouth of a criminal. you value life because humans let you steal money from a false sense of hope. if humans knew your scheme was hopeless, you would be dead

[bitzizzix]

Bitcoin has value because many people use it and want it, see it as something of value, and use it as an investment or other use.
and if everyone stops using bitcoin in any form then the price will drop drastically and therefore will not earn anything.
and the value of bitcoin is also determined by the forces of supply and demand and is also limited.

[mia_houston]

Bitcoin is not backed by any physical asset like Gold nor by any fiat currency. It makes me wonder if I should invest/trade in Bitcoin or not?

Of course bitcoin does not have physical assets but that does not mean bitcoin is not worth investing in, now many countries and also institutional companies are starting to adopt bitcoin so that it allows bitcoin to be more valuable than gold in the future, in today digital era, investment is certainly just keep up with the times so that what used to be physical may soon be replaced by various virtual investments.
If mark zuckerberg just dares to invest virtual (metaverse) with all his wealth, why not us?

[amishmanish]

The answer my friend is blowing in the wind.
Bit coin gets its value from blockchain mining which makes it a proof of work based decentralized economic token. In other words I think bitcoin derives its value for being an decentralized alternative asset to fiat or gold. That makes it precious.(My precious)

[Agbe]

Bitcoin is not backed by any physical asset like Gold nor by any fiat currency. It makes me wonder if I should invest/trade in Bitcoin or not?

That is an rhetorical question which probably might be no answer. But that not withstanding,  as you know bitcoin is a decentralized currency that need not physical assets to control it. You control yours and I control mine. You should not wonder because investment is not by force. I thought you would asked for the legitimacy of the currency. Investment is a personal interest if you want to do it you are free and if you don't to do it is all your choice.

And another thing you have to consider is the platform, so if you want to invest on bitcoin, asked questions to know the genuine Trading sites to invest. You don't have to be afraid as you are here. What you have to do is to read other threads and learn from them. Your inquisitiveness will determine your out come. So be focus and learn.