What makes Bitcoins valuable?

[ItsCrafty]

if bitcoin doesn't go to zero, maybe the inflating us dollar would cause that to happen but still I'd say your statement is not necessarily 100% guaranteed to happen. maybe 90%. but there's that chance that it never happens. people shouldn't just automatically assume they should go get a loan and dump all of it into btc hoping it goes past that ATH. and then sit there for years waiting while they're paying 20% interest to the bank...

There are several factors that contribute to the value of Bitcoin. First, since there is a limited supply of Bitcoin, this scarcity creates a sense of exclusivity and increase demand. Secondly, Bitcoin operates on a entire network that not controlled by any particular organization, which is of interest to people as an alternative to the traditional business. Mainly it has its block chain which provides a robust and transparent system of transaction records. Additionally it can be easily transferred and accessed by anyone who using the internet. One of the best about this is that compared to other assets, here you can use your thinking to get a lot of benefit.

[Smartvirus]

Today BTC is becoming more stable then dollar

Just how true is this?

Just a stroll to the charts and coinmarketcap would tell you, bitcoin has varied by 0.05% in the past hour and 0.99% in the past 24hours as at the time of this comment . This tells you just how unstable bitcoin is and it would continue to swing back and forth as it should be.

It’s a highly volatile market and you shouldn’t be expecting a stability in bitcoin price let alone, to compare it with dollar. Even the Tether USDT that is dollar pegged has got a 0.00% variance on it in the past hour and even 24hours so, it just doesn’t go.

[larry_vw_1955]

if bitcoin doesn't go to zero, maybe the inflating us dollar would cause that to happen but still I'd say your statement is not necessarily 100% guaranteed to happen. maybe 90%. but there's that chance that it never happens. people shouldn't just automatically assume they should go get a loan and dump all of it into btc hoping it goes past that ATH. and then sit there for years waiting while they're paying 20% interest to the bank...

that's a valid point. i'd also add that the only thing that really gives bitcoin any value is the people that use it. if something better came along and yes many projects have and haven't displaced bitcoin yet but if that did happen then bitcoin becoming "#2" would be a big blow to it.

[CryptoBuds]

Today BTC is becoming more stable then dollar

Just how true is this?

Just a stroll to the charts and coinmarketcap would tell you, bitcoin has varied by 0.05% in the past hour and 0.99% in the past 24hours as at the time of this comment . This tells you just how unstable bitcoin is and it would continue to swing back and forth as it should be.

It’s a highly volatile market and you shouldn’t be expecting a stability in bitcoin price let alone, to compare it with dollar. Even the Tether USDT that is dollar pegged has got a 0.00% variance on it in the past hour and even 24hours so, it just doesn’t go.

Bitcoin's sideways movement over the past several weeks has made many people impatient and they consider bitcoin to be a more stable coin. I bet this guy is in the same situation, he is annoyed that the volatility of bitcoin is not so great and doesn't know what to do in this case. But luckily, bitcoin moved and at one point it crossed $30k today, I think bitcoin was better than USD in his mind  . Bitcoin investing is like a psychological game, those who know how to be patient and wait will often get better rewards.

[Darker45]

Bitcoin is valuable because of certain features.

For example, Bitcoin is censorship-resistant. You can spend your Bitcoin anywhere in the world and with anybody without fear that your transaction will be rejected, reversed, cancelled by an authority because of your political affiliations, nationality, race, and so on.

Another reason is that Bitcoin is immutable. That Bitcoin has value is because of people's trust, and one reason why people trust Bitcoin is that nobody can alter or change its recorded transactions.

Another reason is that Bitcoin is borderless. No conversions needed wherever you are in the world. This offers seamless transactions because jurisdiction isn't a factor.

[Bitcoin_people]

3. Bitcoin has become accepted as a store of value
Most individuals believe gold is a store of value. When Warren Buffet says gold has intrinsic value, he means the asset itself is valuable.

Buffet doesn’t believe Bitcoin has intrinsic value. But it does because BTC investors, and the nation of El Salvador, has decided it does.

El Salvador made Bitcoin legal tender. Nations back up their native currency with gold, silver, or other precious metals. El Salvador backs up their currency with Bitcoin.

Bitcoin is a currency in which people invest with the aim of changing their financial position and earn profit from it. Whereas El Salvador has formally identified Bitcoin as their country's back-up currency that improves their economic status. Although El Salvador currently has a breakup system of everything by Bitcoin where they have created a Bitcoin City. In other countries of the world they break up their economic position with gold or other precious metals. But El Salvador is the only country where Bitcoin is used to break up their economic status. And by using Bitcoin they are enjoying all the benefits and leading the country towards economic development. In that case we can say Bitcoin is a store of value where people can invest their money and earn good profits. Bitcoin is a virtual currency held by people believing it to be a future asset.

[Agbe]

So once 21 million Bitcoin have been mined, that’s it. The game is over.

Op the 21 million BTC will never be mined because they can only be mined when there is no demand and supply. If there is buyers and sellers Miners are always be there to mine the coins for the people so the only thing that can stop bitcoin transaction is when nobody buys and nobody sells there every thing will stop but lolz that can never happened.

-except for China at this time, can purchase Bitcoin, utilize BTC, and store Bitcoin with specific, anonymous, keys.

Op how? Can you put more highlight on this point? You said bitcoin is decentralized which makes it out of authority control but you are saying that "except China". How? You mean China can control bitcoin? Op bitcoin is value because of it decentralized nature which restricted people to control it and you as an individual control your coins.

[laurenB7742]

3. Bitcoin has become accepted as a store of value
Most individuals believe gold is a store of value. When Warren Buffet says gold has intrinsic value, he means the asset itself is valuable.

Buffet doesn’t believe Bitcoin has intrinsic value. But it does because BTC investors, and the nation of El Salvador, has decided it does.

El Salvador made Bitcoin legal tender. Nations back up their native currency with gold, silver, or other precious metals. El Salvador backs up their currency with Bitcoin.

Bitcoin is a currency in which people invest with the aim of changing their financial position and earn profit from it. Whereas El Salvador has formally identified Bitcoin as their country's back-up currency that improves their economic status. Although El Salvador currently has a breakup system of everything by Bitcoin where they have created a Bitcoin City. In other countries of the world they break up their economic position with gold or other precious metals. But El Salvador is the only country where Bitcoin is used to break up their economic status. And by using Bitcoin they are enjoying all the benefits and leading the country towards economic development. In that case we can say Bitcoin is a store of value where people can invest their money and earn good profits. Bitcoin is a virtual currency held by people believing it to be a future asset.

The government of El Salvador seems to have bought bitcoin at a high, possibly much higher than current prices, so to say that they are benefiting and their economy is growing on bitcoin is inaccurate. I am not saying they failed because adoption will take longer, but they are not very successful in accepting bitcoin and bitcoin is not the only official currency there, El Salvadorans still use USD in their daily lives.

Many people say that bitcoin is a store of value but I still doubt it, because bitcoin's volatility is so great that it is not suitable as a store of value. Assets like gold or real estate are more stable, so they can be said to be suitable for storing value. As for bitcoin, it is more suitable as an investment, IMO.

[franky1]

Buffet doesn’t believe Bitcoin has intrinsic value. But it does because BTC investors, and the nation of El Salvador, has decided it does.

The intrinsic value comes from inputs to mine BTC. If you need to spend money for technical inputs to confirm transactions, mine blocks in order to get BTC, it would have its intrinsic value. The intrinsic value is hard to calculate because mining costs are different at different locations.

totally agree with this part in green

not quite accurate about this part in red

value vs premium is a range..
value itself is at the bottom it sits below the market and is not to be confused with price. value is the lowest most efficient mining cost on the planet. this sets the 'bottom' no one wants to sell below.. the speculation is then the volatile PRICE on spot markets that can range from value(bottom) to premium(ATH)
the market PRICE speculation is difficult to calculate because different people have their own different costs so willing to buy upto or sell down to certain amounts... however you can calculate the bottom value on the planet of the most efficient cost to know the bottom below market support
dont confuse value vs price

[Fivestar4everMVP]

Bitcoin is valuable because of certain features.

For example, Bitcoin is censorship-resistant. You can spend your Bitcoin anywhere in the world and with anybody without fear that your transaction will be rejected, reversed, cancelled by an authority because of your political affiliations, nationality, race, and so on.

Another reason is that Bitcoin is immutable. That Bitcoin has value is because of people's trust, and one reason why people trust Bitcoin is that nobody can alter or change its recorded transactions.

Another reason is that Bitcoin is borderless. No conversions needed wherever you are in the world. This offers seamless transactions because jurisdiction isn't a factor.

In the nutshell, we could say that the reason why bitcoin is so valuable is because of people's interest in it, great technologies can be built but without people being interested in such a tech, the value will remain on the group for as long as it takes, humans are the ones who give value to things or give give things the value they think its worth.
Looking at the advantages of bitcoin, that is, its importance to humanity, some of us still consider bitcoin highly undervalued even as its worth tens of thousands of dollars, I personally think that based on the importance of bitcoin to humanity and our financial sector, Bitcoin should have a market capitalization equal or bigger than the foreign exchange market, but then, I understand that Rome was not built in a day, Bitcoin will arrive their some day, as i believe that even the foreign exchange market did not become that big in a couple of years, Bitcoin is still just a couple of years old .

Today BTC is becoming more stable then dollar

Well, I do not know, but I think I disagree, Bitcoin is still as volatile as I think it can be, but then, if its stable, its better it be stable than nose diving, or what do you think?

[rikybrosh]

that's are true but i think the biggest factor is because many people want to use, trade, and hold bitcoin. the growing number of people who wants btc make it's price rise. cryptocurrency community is already big and keep growing which means we can expect btc to become more liquid.

[Husires]

Scarcity (limited supply), centralization, and being anonymous cannot make the cryptocurrency valuable. For example, Monero fulfills these conditions. However, its value is far from Bitcoin.

For the currency to be of value, demand must increase the amount of supply that is generated and the demand curve continues to grow. If the demand curve continues to grow, the price of the currency will increase if the demand is constant or declining, which is what is happening in Bitcoin now.
We cannot develop the Bitcoin model to be for all cryptocurrencies, but we can say that there are a few cryptocurrencies that will be.

[fuguebtc]

that's are true but i think the biggest factor is because many people want to use, trade, and hold bitcoin. the growing number of people who wants btc make it's price rise. cryptocurrency community is already big and keep growing which means we can expect btc to become more liquid.

Demand is always the determining factor in the value of an asset but why is demand for bitcoin higher than for any other coin? It is because of the factors that the OP mentioned, and to be in high demand, bitcoin needs to have features and advantages that are superior to the rest of the cryptocurrencies. But I think the main factor that sets bitcoin apart is its decentralization. No 2nd coin is more perfect than bitcoin in terms of decentralization.

[bitcongir]

The fact that all financial markets and in all countries affect the
price of Bitcoin has made it very difficult to think and analyze.
 I am so tired.

[Nrcewker]

The first reason itself is sufficient to prove why Bitcoins are valuable. I mean there are already fixed number of Bitcoins in the market and no more Bitcoins can be created or destroyed. Hence this makes Bitcoins supply fixed and limited. Due to the fixed amount of supply Bitcoins are becoming valuable day by day. The increase in demand to accumulate Bitcoins among the people is helping Bitcoins to gain more price. The supply and demand theory also justifies how valuable Bitcoins are.

[Queentoshi]

1. Bitcoin is scarce
Scarcity leads to value. Bitcoins are scarce. Bitcoins will always remain scarce because only 21 million will ever exist.

It would take a gargantuan effort to change this number. In fact, nobody knows if it can be done. So once 21 million Bitcoin have been mined, that’s it. The game is over.

There is no way to discover, like what recently happened in Uganda, a bunch of gold in the ground.

2. Bitcoin is decentralized
One of the reasons Bitcoin holds value, and should always hold value, is because there is no single government that can get involved and print more BTC or mess with it’s price.

Decentralization also means that anybody in any nation, except for China at this time, can purchase Bitcoin, utilize BTC, and store Bitcoin with specific, anonymous, keys.

3. Bitcoin has become accepted as a store of value
Most individuals believe gold is a store of value. When Warren Buffet says gold has intrinsic value, he means the asset itself is valuable.

Buffet doesn’t believe Bitcoin has intrinsic value. But it does because BTC investors, and the nation of El Salvador, has decided it does.

El Salvador made Bitcoin legal tender. Nations back up their native currency with gold, silver, or other precious metals. El Salvador backs up their currency with Bitcoin.

4. Bitcoin is anonymous
Nobody wants anyone looking into their finances. Your finances are your business. Bitcoin is anonymous, meaning although Coinbase might know who you are, they don’t know why you made the transaction.

Anonymity makes it valuable because at no time can a credit card company cut the amount of money they’re willing to lend you. Your bank account can’t decide to deny a transaction because they don’t like what you are purchasing.

All what you have mentioned is correct, but truthfully, I think that the major reason bitcoin has value is because we humans have given it value. If it was completely ignored by every human, it will be valueless even with the many benefits it can offer. Bitcoin has value because humans paid attention to it and gave it value. So as more people know about bitcoins, the value will increase because more people will try to get it and in trying to get it, it will become more scarce and the value will increase.

[Blitzboy]

Scarcity (limited supply), centralization, and being anonymous cannot make the cryptocurrency valuable. For example, Monero fulfills these conditions. However, its value is far from Bitcoin.

For the currency to be of value, demand must increase the amount of supply that is generated and the demand curve continues to grow. If the demand curve continues to grow, the price of the currency will increase if the demand is constant or declining, which is what is happening in Bitcoin now.
We cannot develop the Bitcoin model to be for all cryptocurrencies, but we can say that there are a few cryptocurrencies that will be.

Although cryptocurrencies like Monero satisfy requirements like privacy and scarcity, they haven't attained the same level of widespread adoption as Bitcoin. Is the increased value of Bitcoin due to its acceptance? Or is it a somewhat puzzling phenomenon with additional forces at play? Perhaps Monero's inability to match Bitcoin's value is a sign of its inherent flaws. The relationship between these variables, though, is still a little hazy, imprecise, and puzzling, which makes it a little harder to fully understand what you said

[bayu7adi]

Each individual bears an emotional rationale when confronted with the prospect of purchasing Bitcoin. This entity, conspicuously devoid of physical form, derives its perceived value from the wellspring of emotion and psychology. The undulating swells and troughs of the BTC price rally exert a distinct allure upon those inclined to wager their prowess in the realms of trading or investment.

A multitude of individuals elect to lay claim to Bitcoin, each driven by their unique motives, thereby sustaining its intrinsic value and market desirability. While its feasibility as an ideal currency might be contested, Bitcoin assumes an alternate role as an instrument, be it an investment or a digital payment alternative, standing in tandem with conventional FIAT currency.

[lionheart78]

The use case of Bitcoin makes it valuable, IMHO.  It makes the unbanked able to participate in the global economy which is very impossible before.  Having no bank account before Bitcoin was created restricted individuals to participate in global trades.  Bitcoin enables financial inclusion to those people who were denied by banks.  This simply means unbanked are given an opportunity to flourish through local and global trades.

[DoublerHunter]

The use case of Bitcoin makes it valuable, IMHO.  It makes the unbanked able to participate in the global economy which is very impossible before.  Having no bank account before Bitcoin was created restricted individuals to participate in global trades.  Bitcoin enables financial inclusion to those people who were denied by banks.  This simply means unbanked are allowed to flourish through local and global trades.

^That is a part that BTC becomes valuable, the use case but the main factor could be the limited supply of BTCs, with a fixed total number that can ever exist, inherently creates scarcity in the market. This scarcity is a key factor driving the increasing value of Bitcoins over time and as demand for BTC continues to rise among investors big or small that looking to accumulate them, the fixed supply contributes to upward pressure on their price. This phenomenon is almost the same as the fundamental economic principle of supply and demand, further emphasizing the significance of BTC value in the digital asset landscape.