Really, why bitcoin has this value?

[Joshapat]

Although bitcoin is currently around $63k, but this does not guarantee bitcoin will continue to be worth, this is because bitcoin has a decentralized concept so that the price goes up or down depending on the community, maybe the price will continue to rise because the community is getting bigger but we have to be realistic that one day bitcoins can be worthless.

[LUCKMCFLY]

Because people find it useful and profitable. Humans are known to exploit just about anything regardless of the consequences or whatever negative outcome may result from their actions. That is, unless they are the ones at the recieving end. Not saying that everyone is like so, but just emphasizing how almost everyone is like this. Just look around you, all the things that people do and ignore that bleeds this world and almost anything within it dry. And for what? Greed. So unless greed is controlled, expect no change how things are going. Bitcoin isn't exempted.

If, in fact, greed is one of the greatest feelings that the majority have, the bad thing is that it is something negative, it makes many lose and others it makes them lose control of absolutely everything, in order to exploit everything, too, it is like taking every natural resource and plundering it, leaving it useless regardless of damaging it. Controlling greed on the part of others is a very difficult task, it depends on the conscience of each person, what you say is true but very difficult to combat.

[Silberman]

At some point I am really messed up and lost in vein when it comes to bitcoin's price. I think that every second it gets more and more a victim of speculation and gets abandoned from its original idea.
If bitcoin could perform very well at 6K some months ago, why it become 60K after some months? And then it went back to 30K but was still functioning very smoothly, i.e. it was doing the job it was created for.
Again, If bitcoin could perform well at 30K some weeks ago, then why it worth 60K right now? I just don't get it when people say that bitcoin isn't speculated and all of these prices are just natural.

Anyone that says to you there is no speculation in any market is lying to you or they do not know what they are talking about, the markets are for speculators, a transaction only happens when both sides speculate, one side believes the price will go down which is why they are selling, the other believes the price will go up which is why they buy, and why the price is going up? Because the demand has increased dramatically during the next months, it is as simple as that.

[palle11]

Although bitcoin is currently around $63k, but this does not guarantee bitcoin will continue to be worth, this is because bitcoin has a decentralized concept so that the price goes up or down depending on the community, maybe the price will continue to rise because the community is getting bigger but we have to be realistic that one day bitcoins can be worthless.

Lol you have contradicted yourself if you say one day bitcoins can be worthless because you didn't also give your reason for that allusion you made. But you have to understand that there is a financial digital marketing revolution going on creating an option to domestic currency. This is to say something going on that no body is able to stop it.

[syedakhlaque]

Many factors affect bitcoin value.
i) The Internation economic & political condition. If both show stability its value will rise.
ii) The legal development process of Bitcoin also affects bitcoin its value as the Russian Govt legalizes it. Then there was development in its value.
iii)Some epidemic diseases like Covid-19 also fell an effect on its value.
iv)The purchasing or sale on large scale also rises or falls its value.
v) Some good or bad news also fell effect on its value.
There may be some other causes like Gold price or stock market collapse etc.

[Ngewex Yuk]

Many factors affect bitcoin value.
i) The Internation economic & political condition. If both show stability its value will rise.
ii) The legal development process of Bitcoin also affects bitcoin its value as the Russian Govt legalizes it. Then there was development in its value.
iii)Some epidemic diseases like Covid-19 also fell an effect on its value.
iv)The purchasing or sale on large scale also rises or falls its value.
v) Some good or bad news also fell effect on its value.
There may be some other causes like Gold price or stock market collapse etc.

There is no exact price benchmark for bitcoin, the law of the market is stock and demand that shape the price, currently the community and active bitcoin users continue to increase while the stock is very limited so that the price skyrockets, maybe one day bitcoin will be valued with a definite value such as gold or stocks.

[Gyfts]

...

How are you defining currency value? Currency value is relative but individually the inflation rates are not necessarily a monolithic which is going to cause currency to lessen in value. Japan's inflationary period was generally isolated many years ago, during the 70's the US had their own inflation problem but post Covid all fiats took a hit because of the jumbled economic response with lockdowns and such.

[johnyj]

Although bitcoin is currently around $63k, but this does not guarantee bitcoin will continue to be worth, this is because bitcoin has a decentralized concept so that the price goes up or down depending on the community, maybe the price will continue to rise because the community is getting bigger but we have to be realistic that one day bitcoins can be worthless.

This is really a concern that everyone has, I want to analyze it from pure buy and sell power angle

I have followed the price movement for many years. What I observed is that some kind of price stickiness in it, so it maximum crash 80-90 percent.

I think this is due to combined effects of 2 major driven factor:

1. dramatically reduced selling pressure when the price has gone down so much
(For those who bought the top, it doesn't matter if they sold at 90% loss or 100% loss, they have lost most of their investment anyway, so they end up do nothing and hodl, and this in turn reduce the sell pressure)

2. dramatically increased purchasing power of market buyers
(With same money, you can buy 10x more coins when price has crashed 90%)

That's why when it crashes 90%, the sell pressure will disappear and price will start to stabilise. As a result, if you could drive the price up 100x, even after the crash, you could raise the new bear market bottom to be 10x higher than the old bear market bottom. And that will draw new participants

A big limitation is the fiat money inflow channel, today many banks are restricting it, trying to starve the cryptocurrency market, but with the rise of USDT and other stable coins, it seems the community has find its own way of generating liquidity without fiat money inflow, this is the new development and will raise the price by a few magnitudes if keep going without restriction

[g-uid]

At some point I am really messed up and lost in vein when it comes to bitcoin's price. I think that every second it gets more and more a victim of speculation and gets abandoned from its original idea.
If bitcoin could perform very well at 6K some months ago, why it become 60K after some months? And then it went back to 30K but was still functioning very smoothly, i.e. it was doing the job it was created for.
Again, If bitcoin could perform well at 30K some weeks ago, then why it worth 60K right now? I just don't get it when people say that bitcoin isn't speculated and all of these prices are just natural.

try not to think about bitcoin as an entity independent of market forces, at least in so far as price is concerned. ultimately supply (willingness of producers to satisfy) and demand (price consumers willingness to pay) and the equilibrium thereof is what is at play here:

https://ia601600.us.archive.org/19/items/MIT14.01SCF10/MIT14_01SCF10_lec02_300k.mp4

[RondoAnyar]

this fact will increasingly stick to the surface over time and over time when they did not understand at first they will now understand more that bitcoin is a speculative asset.
speculation is something that people invented to make this seem predictable where it will go but it seems that speculation will still be speculation whose truth will be 50:50.
but this does not close the very important point that indeed bitcoin is one of the innovative and money-making inventions and we cannot forget it.

[Nhor1011]

Maybe bitcoin is an speculative asset but also think that it will not go far that value of $60K from nothing if there are no demands that push bitcoin to what it is now. The economic status also is one factors that affect in bitcoins value especially this pandemic which brought more demands in bitcoin. There are many factors to consider why bitcoin price increased that much but the root is the demand and supply of course, the driving force of bitcoin.

[Kimonoe]

a lot of investor confidence about the future of bitcoin, where the few people who still use it make investors believe that later when more and more people use it the price will soar. the advantage of bitcoin having high volatility, is to attract new investors to join, and if seen, bitcoin will always form a new ath, and this is what makes many investors optimistic

[pinggoki]

I guess the prices are as such because of the fact that more and more influential figures with multiple million dollars in their name like Elon Musk adopting bitcoin in their investment portfolio. The fact that they dragged a massive following along with them while investing huge amounts of money as well made the price pump like that since last year. I'm pretty sure there are people who would assume such action is grounds for speculation, but I would disagree knowing that a majority of people who invested and held on to their bitcoins are in it because of the use-cases it can bring to the table.

Although bitcoin is currently around $63k, but this does not guarantee bitcoin will continue to be worth, this is because bitcoin has a decentralized concept so that the price goes up or down depending on the community, maybe the price will continue to rise because the community is getting bigger but we have to be realistic that one day bitcoins can be worthless.

This is really a concern that everyone has, I want to analyze it from pure buy and sell power angle

I have followed the price movement for many years. What I observed is that some kind of price stickiness in it, so it maximum crash 80-90 percent.

I think this is due to combined effects of 2 major driven factor:

1. dramatically reduced selling pressure when the price has gone down so much
(For those who bought the top, it doesn't matter if they sold at 90% loss or 100% loss, they have lost most of their investment anyway, so they end up do nothing and hodl, and this in turn reduce the sell pressure)

2. dramatically increased purchasing power of market buyers
(With same money, you can buy 10x more coins when price has crashed 90%)

That's why when it crashes 90%, the sell pressure will disappear and price will start to stabilise. As a result, if you could drive the price up 100x, even after the crash, you could raise the new bear market bottom to be 10x higher than the old bear market bottom. And that will draw new participants

A big limitation is the fiat money inflow channel, today many banks are restricting it, trying to starve the cryptocurrency market, but with the rise of USDT and other stable coins, it seems the community has find its own way of generating liquidity without fiat money inflow, this is the new development and will raise the price by a few magnitudes if keep going without restriction

This is a very sound explanation from an entrepreneurial perspective. Price pressure and price stabilization does play a role in ensuring that the price floor of bitcoin is kept in check even when it is bearish. Giving people opportunity to buy bitcoins at a much more favorable price point than years ago. I still don't think this solves the question of whether bitcoin is indeed a speculative asset or not, since there are still some parts of the whole thing about bitcoin that is not covered like the fact that it skyrockets when it does, but nonetheless a good explanation.

[taufik123]

Maybe bitcoin is an speculative asset but also think that it will not go far that value of $60K from nothing if there are no demands that push bitcoin to what it is now. The economic status also is one factors that affect in bitcoins value especially this pandemic which brought more demands in bitcoin. There are many factors to consider why bitcoin price increased that much but the root is the demand and supply of course, the driving force of bitcoin.

Bitcoin is still a speculative asset that is in great demand by investors. some new or old investors take advantage of bitcoin moments to get as much profit as possible. The demand for bitcoin is also getting higher as Bitcoin continues to be reported and the hype continues to grow. The increasingly limited supply of bitcoins makes bitcoin the most valuable digital asset. Even bitcoin will form new ATH which is over $60k.

Another factor that makes bitcoin has a value that continues to rise is the increasing adoption of bitcoin. some big companies are starting to adopt bitcoin and this will be very influential.

[Fortify]

At some point I am really messed up and lost in vein when it comes to bitcoin's price. I think that every second it gets more and more a victim of speculation and gets abandoned from its original idea.
If bitcoin could perform very well at 6K some months ago, why it become 60K after some months? And then it went back to 30K but was still functioning very smoothly, i.e. it was doing the job it was created for.
Again, If bitcoin could perform well at 30K some weeks ago, then why it worth 60K right now? I just don't get it when people say that bitcoin isn't speculated and all of these prices are just natural.

Much like the stock market - trying to understand the waves is almost impossible because it is driven by such a collective amount of irrational behavior. When Bitcoin is doing well and all the news is positive people flock to it. When a few bad developments hit the news, like eco-unfriendly concerns, possible US regulations or China banning it outright, then people all try to flee at the same time. Similar things happen in the boom and bust cycles that drive stock ownership but are amplified much more greatly because it is a single asset getting so much attention. Nothing much actually changed, just the static noise around it was producing a certain overall buy or sell signal.

[The Cryptovator]

All of your questions are legit but only one answer. As we know Bitcoin is totally backed by the community, so the price must depend on the community's demand. When a few big investors enter the Bitcoin community then a FOMO becomes active inside the community. As a result, everyone just concentrates to accumulate more Bitcoin and prices go up this way. Means demand goes up and circulation supply becomes lower since everyone tries to hold during that time. It's just my thoughts, I am not a good tech guy nor an analyzer. The answer might be wrong in your opinion.

[Silberman]

Maybe bitcoin is an speculative asset but also think that it will not go far that value of $60K from nothing if there are no demands that push bitcoin to what it is now. The economic status also is one factors that affect in bitcoins value especially this pandemic which brought more demands in bitcoin. There are many factors to consider why bitcoin price increased that much but the root is the demand and supply of course, the driving force of bitcoin.

Bitcoin is still a speculative asset that is in great demand by investors. some new or old investors take advantage of bitcoin moments to get as much profit as possible. The demand for bitcoin is also getting higher as Bitcoin continues to be reported and the hype continues to grow. The increasingly limited supply of bitcoins makes bitcoin the most valuable digital asset. Even bitcoin will form new ATH which is over $60k.

Another factor that makes bitcoin has a value that continues to rise is the increasing adoption of bitcoin. some big companies are starting to adopt bitcoin and this will be very influential.

One thing that we must understand is that if bitcoin was nothing else but an speculative asset then it would have faced the same fate that we see happening to the majority of the altcoins in the market, bitcoin can be an asset with such volume, price and interest coming from the institutional investors because its fundamentals are rock solid, people that know very well how the economy works are taking a look at bitcoin and they are seeing very solid asset which will make them money over the short and the long term.

[Yamifoud]

At some point I am really messed up and lost in vein when it comes to bitcoin's price. I think that every second it gets more and more a victim of speculation and gets abandoned from its original idea.
If bitcoin could perform very well at 6K some months ago, why it become 60K after some months? And then it went back to 30K but was still functioning very smoothly, i.e. it was doing the job it was created for.
Again, If bitcoin could perform well at 30K some weeks ago, then why it worth 60K right now? I just don't get it when people say that bitcoin isn't speculated and all of these prices are just natural.

Much like the stock market - trying to understand the waves is almost impossible because it is driven by such a collective amount of irrational behavior. When Bitcoin is doing well and all the news is positive people flock to it. When a few bad developments hit the news, like eco-unfriendly concerns, possible US regulations or China banning it outright, then people all try to flee at the same time. Similar things happen in the boom and bust cycles that drive stock ownership but are amplified much more greatly because it is a single asset getting so much attention. Nothing much actually changed, just the static noise around it was producing a certain overall buy or sell signal.

In general, it has an unstable price because it fully depends on the community and its market demand. The price is speculated, not manipulated and in this case, people won't stop predicting the price no matter what. It is just about accepting and making deal with the volatility of the market because whether we like it or not, that it remains like that till forever.
It is a way we have to adopt the system, people make money from this because of such volatility and I guess they are happy too. People make happy of its existence not because they can use this to buy things or to pay their bills but it was considered as a profitable investment/asset.

[Botnake]

At some point I am really messed up and lost in vein when it comes to bitcoin's price. I think that every second it gets more and more a victim of speculation and gets abandoned from its original idea.
If bitcoin could perform very well at 6K some months ago, why it become 60K after some months? And then it went back to 30K but was still functioning very smoothly, i.e. it was doing the job it was created for.
Again, If bitcoin could perform well at 30K some weeks ago, then why it worth 60K right now? I just don't get it when people say that bitcoin isn't speculated and all of these prices are just natural.

Much like the stock market - trying to understand the waves is almost impossible because it is driven by such a collective amount of irrational behavior. When Bitcoin is doing well and all the news is positive people flock to it. When a few bad developments hit the news, like eco-unfriendly concerns, possible US regulations or China banning it outright, then people all try to flee at the same time. Similar things happen in the boom and bust cycles that drive stock ownership but are amplified much more greatly because it is a single asset getting so much attention. Nothing much actually changed, just the static noise around it was producing a certain overall buy or sell signal.

In general, it has an unstable price because it fully depends on the community and its market demand. The price is speculated, not manipulated and in this case, people won't stop predicting the price no matter what. It is just about accepting and making deal with the volatility of the market because whether we like it or not, that it remains like that till forever.
It is a way we have to adopt the system, people make money from this because of such volatility and I guess they are happy too. People make happy of its existence not because they can use this to buy things or to pay their bills but it was considered as a profitable investment/asset.

Due to bitcoin's volatility, it is always understood that at some time, its price is high, and then it becomes lower or even higher the next time around. Aside from that, the demand of bitcoin in the market also tells why bitcoin has a value like that or like this. For now, since the price is ultimately high, then its because bitcoin's demand is always growing, and the higher it grows, the more valuable bitcoin becomes.

Well, do not be confused why bitcoin tends to change its price from time to time. It has its own reasons, and you'll get used to it eventually.

[witcher_sense]

To make our discussion more clear, we first should learn how to properly differentiate between the concept of the value and the concept of price. The latter is determined from the former and fluctuates considerably, while the former may stay unchanged for a long time. The value of bitcoin hasn't changed much since its inception. It is still a peer-to-peer electronic cash system that is decentralized and therefore unstoppable. Bitcoin of 2021 has the same properties it had back then. The major reason why its price increases over time is that more and more people discover bitcoin, more and more people are starting to appreciate the properties it has. The more people find bitcoin valuable for themselves, the higher it grows in price. It is a natural outcome of increased demand for money. You are right in the sense that bitcoin of whatever price can perform its functions very well, but it immediately follows that people will continue to buy bitcoin despite its price.