What makes bitcoin valuable beyond its price?

[Peanutswar]

For me another factor here is we are now shifting into web3 and most of the web now have their own wallet and access to connect to a platform so basically most of the cryptocurrency tokens will be use now depends on the network and of course they cant neglect of having bitcoin to be part of it like it has a limited number of supply and there is a demand reason for there is a market volatility price goes up and down so beside an investment this could be use for payment in goods and services and you can transact a large amount without having KYC.

[püsür]

I’ll try to explain it simply. Bitcoin emerged as something distinct from gold, the stock market or other investment vehicles, and broke the monopoly and tedium of the traditional financial markets. It offered people a new opportunity. It provided the chance to invest early and experience massive gains. I also know many people who keep their bitcoins in cold wallets and plan to leave them as an inheritance for their children. Such an opportunity is virtually non-existent in any other investment.

[Nrcewker]

Bitcoin discussions usually focus on price, adoption, and market cycles.

But what do you think gives Bitcoin its strongest long-term value: decentralization, scarcity, security, utility, or something else?

I think decentralisation and scarcity are what make Bitcoin a valuable asset. I know the discussion will eventually move towards the price of the coin but that is actually what astonishes me as an investor and trader. We have seen Bitcoin rise from around 400$ to 100k USD. That is one of the craziest returns an investor could have experienced over a period of less than 10 years.

Now talking about the decentralised nature of the coin, that makes it even more special. No one other than me can know exactly how many coins I hold. All these characteristics combined in a single asset are what make Bitcoin so special. So dont try to find every merit or demerit of the coin. If you want to invest, just do it with faith.

[wapwapwendy]

The price of Bitcoin has being a pulling force of attractant but, it’s hardly the reason why people have being able to invest and stay confident in Bitcoin to not liquidate like we find in altcoins, a good number of investment outside cryptocurrencies and even schemes like the Ponzi. We know how those schemes did pull large crowds but, it crumbled.

For Bitcoin, we have the technological backing which revolves around, decentralization, the blockchain technology, consensus rules, limited supply and a host of other attributes. All that adds to its uniqueness and why people are so trusting of the currency today.

True, the tech is what keeps people committed even when the price gets rough. That’s also why I’m more interested in Bitcoin’s long-term utility beyond just holding it.

[cr1776]

Bitcoin discussions usually focus on price, adoption, and market cycles.

But what do you think gives Bitcoin its strongest long-term value: decentralization, scarcity, security, utility, or something else?

All of the above, plus censorship resistance.

[wapwapwendy]

Bitcoin discussions usually focus on price, adoption, and market cycles.

But what do you think gives Bitcoin its strongest long-term value: decentralization, scarcity, security, utility, or something else?

This kind of topic is common on Altcoinstalks, but it will be better you read the topics that are commonly posted on this forum before posting. You should be able the answer this question yourself.

What makes bitcoin valuable beyond the price is that bitcoin is giving users complete control of their coin, it is censoring resistance and because it is decentralized.

Yeah, and I think that’s what separates Bitcoin from most altcoins. The network doesn’t need constant hype to keep its purpose.

But what do you think gives Bitcoin its strongest long-term value: decentralization, scarcity, security, utility, or something else?

If you look at this list you yourself have listed features that even one of them is just enough to make bitcoin attractive as an investment for a long term hold, been it decentralization in an era where it’s seems not possible due to government stern regulations or scarcity and even security because it’s not centralized as many people already believe that any investment or asset without bitcoin control is basically not going to be secure but bitcoin proves that wrong already.

Then ultimately as an asset for investment the one feature is the ability to be a store of value to hedge against inflation which I think has eaten up into almost everything that once has to hodl from fiat currency to others. Bitcoin isn’t affected by inflation and that’s a key metrics for long term value

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thank you!!

Bitcoin has not become so popular and its price has not increased so much for one particular reason. Bitcoin is interesting because decentralization, scarcity, security, portability and self-custody work together. But if I were asked to choose one thing, I would choose decentralization. Right now, anyone can create a token and fix its supply, but it is not possible to say how many people will accept that token. I think that if someone does something like this, not many people will accept it. But when someone sees that I am holding a currency that does not have a specific controller. No one can change the rules or regulations . This is why Bitcoin's popularity has increased. And when the popularity started increasing, people started holding Bitcoin, and after that, the price of Bitcoin increased.

Decentralization is a big one, but I’d also say utility matters more as adoption grows. The more ways people can actually use Bitcoin, the stronger its long-term value becomes.

What makes bitcoin valuable beyond the price is that bitcoin is giving users complete control of their coin, it is censoring resistance and because it is decentralized.

You are right that Op has answered the question already. And you added complete control, especially when you hodl btc on a non custodial wallet.

However, I think the strongest part to Bitcoin is, the government has not been able to have control over what is done with bitcoin, how you use it or who you send your coin to. They can't run a forensic investigation to know owners of a non custodial wallet, it can only be traceable to blockchain and real identity/physical like bank accounts is not known. This is freedom and that for me is a great use of bitcoin.

I know, that’s a big part of why Bitcoin stands out. It’s hard to imagine having that level of financial freedom with traditional banking.

[HelliumZ]

Bitcoin discussions usually focus on price, adoption, and market cycles.

But what do you think gives Bitcoin its strongest long-term value: decentralization, scarcity, security, utility, or something else?

The things you mentioned above are important features for Bitcoin and each of them enables Bitcoin to create a new dimension. When you look at the supply of Bitcoin and the utility of Bitcoin and the increasing demand, it certainly sets it apart from other currencies.
The most acceptable thing for me that sets Bitcoin apart from other currencies is its ability to work against inflation. Where paper money has a lot of inflation, Bitcoin does not have inflation. That is what I find most unique about Bitcoin.

[Dr.Bitcoin_Strange]

Scarcity alone isn't worth much.

When some people talks about Bitcoin scarcity, I know they are referring to its total supply caped at 21M but is it even ideal to say that Bitcoin is scarce now meanwhile if someone wants to buy 100s of Bitcoin right now, they can do so with ease?

Bro, you are confusing illiquidity and shortage with scarcity. Because scarcity means limited supply, while a product can be scarce and it can have units available for anyone to buy as much as they want. If someone wants to buy 22 million Bitcoin, can they buy? Nope, that's because Bitcoin is scarce.

Ok, I like the fact you thought about this...

Now you can say, who would buy this much? Maybe someone would but no one can buy 22 million. I hope it explains. Because with this definition of scarcity, you are going to misunderstand what it actually is.

Yea, that's close to the exact question I would have ask, but rather I would have asked you, who even have that amount of money to buy 22 million Bitcoin 🤣


Remember, that In that my first post, I am not concluding that Bitcoin is not scarce, right? What am arguing now is that, is it not so early to start saying that it's scarce, owning to the fact that anyone can still be able to freely buy any amount or fraction of it that they desire to buy? You know why am saying this is because, I assume that in the future, Bitcoin will really be more scarce such that the price will even be 10x the of the recorded all time high. At that time self, there will be limited number of persons that wants to sell while the demand will be 1000x of what we have today.

Ok, let me use this analogy. Assuming I went to a physical market to buy a specific product and in that entire market, non of the retail traders or wholesalers have this product and their reasons for not having it is that distributors have not supplied to them for some weeks. So, anyone interested on the goods will have to wait until it's being supplied before they can buy it (real scarcity), but if the product is still very much available in the shops of some retailers and wholesalers where by any consumer can still buy the amount of that product that they want, can we say the product is really scarce?

[ndutndut]

Bitcoin discussions usually focus on price, adoption, and market cycles.

But what do you think gives Bitcoin its strongest long-term value: decentralization, scarcity, security, utility, or something else?

Besides the value of Bitcoin that attracts many people despite its very fluctuating nature, Bitcoin is also a decentralized asset, its supply is limited, and of course, the freedom from government or bank control makes it a unique asset compared to others. 

So anyone can send Bitcoin all over the world without third party permission, while the blockchain ensures that every transaction is almost impossible to forge. This is what makes Bitcoin incredibly appealing to those who understand it because Bitcoin isn’t just about the price it allows us to transfer it independently. In other words, Bitcoin has its own sovereignty.

[The Cryptovator]

Bitcoin discussions usually focus on price, adoption, and market cycles.

But what do you think gives Bitcoin its strongest long-term value: decentralization, scarcity, security, utility, or something else?

Cross-border payment seems more important to consider valuable besides its price. Even a country under sanctions could still deal through Bitcoin payments worldwide if both countries agree to do so. We have to accept the reality: due to decentralisation, Bitcoin payments couldn’t be blocked if they've been dealt with through a noncustodial wallet.

We can’t ignore institutional investment and reserve assets. Countries seem to be aiming to reserve Bitcoin that also brings long-term value.

[dzungmobile]

Cross-border payment seems more important to consider valuable besides its price. Even a country under sanctions could still deal through Bitcoin payments worldwide if both countries agree to do so. We have to accept the reality: due to decentralisation, Bitcoin payments couldn’t be blocked if they've been dealt with through a noncustodial wallet.

We can’t ignore institutional investment and reserve assets. Countries seem to be aiming to reserve Bitcoin that also brings long-term value.

Cross-border payment is one of things that make Bitcoin value because having capability of cross-border payment is very useful for Bitcoin owners and users. They no longer are controlled by governments, central banks, commercial banks and don't have to face with centralized censorship with Bitcoin blockchain.

They only need to store bitcoins in self custodial wallets, secure their wallets, broadcast transactions by themselves, pay attention on Bitcoin mempools, choose an appropriate fee rate, and wait for Bitcoin miners to confirm their transaction, then Bitcoin node relay information to other nodes, it's done and won't be reversed.

No government can censor or reverse Bitcoin transactions, and they also can not freeze or seize bitcoins in non custodial wallets.

[Gozie51]

I know, that’s a big part of why Bitcoin stands out. It’s hard to imagine having that level of financial freedom with traditional banking.

That is why bitcoin is volatile and direction not clearly predictable because government is not able to have absolute control. Yes, traditional banking system is tied with government monitoring and control through CBN. So the government can decide how much currency worth that they want to print or how much percentage they want to regulate in charge as interest. But with bitcoin, the freedom is with blockchain which is a public ledger and no manipulating supply or secrecy.

[Hamza2424]

My keyboard jump and didn't include IF in the beginning. Thank you.

No problem bro, I knew you missed some words here, that's why I had to inform you about it.

Ok, let me use this analogy. Assuming I went to a physical market to buy a specific product and in that entire market, non of the retail traders or wholesalers have this product and their reasons for not having it is that distributors have not supplied to them for some weeks. So, anyone interested on the goods will have to wait until it's being supplied before they can buy it (real scarcity), but if the product is still very much available in the shops of some retailers and wholesalers where by any consumer can still buy the amount of that product that they want, can we say the product is really scarce?

Hmm bro, again I am trying to understand your point here, but I really want to clear this confusion out for us, and you have to think for a second and read somewhere what the definition of scarcity and availability is.

You are confusing them now. If you say the water is increasing but you use the word decrease in the place of increasing, it can make things confusing for everyone, you are just mixing terms here or maybe I am unable to see your main point here.

Again, scarcity is the property of the resource, and availability tells us how much of that resource can currently be obtained. Then again, scarcity means how limited a resource is relative to the demand, while availability is about how much of that resource is currently accessible or offered for purchase.

[AgriTrack]

That is why bitcoin is volatile and direction not clearly predictable because government is not able to have absolute control. Yes, traditional banking system is tied with government monitoring and control through CBN. So the government can decide how much currency worth that they want to print or how much percentage they want to regulate in charge as interest. But with bitcoin, the freedom is with blockchain which is a public ledger and no manipulating supply or secrecy.

Government is not able to have absolute control? That's not the right way to say it, because government has zero control over Bitcoin as a currency, and we are not talking about the price here because price can be manipulated if large amounts are involved, but we are talking about the system and everything. Governments have complete control over their own currencies especially when it comes to their digital usage but also in general, because they can block your bank accounts, they can stop you from making transactions, they can even confiscate your funds against your will because they have gained all the rights and already have full control.

This is why I also believe that the decentralization of Bitcoin is probably one of the best features it has and it is what makes Bitcoin valuable beyond its price, because as I said, price can be manipulated if big players have access to large amounts of coins that they can use to make the price go up or down, but they can't control the network, the transactions being made, the wallets that are created through self-custodial services, etc.

[hedgeh0g]

Bitcoin discussions usually focus on price, adoption, and market cycles.

But what do you think gives Bitcoin its strongest long-term value: decentralization, scarcity, security, utility, or something else?

This is an excellent question: I believe that each of the concepts listed gives Bitcoin its unique character, but together they add up in an amazing way. It turns out that this simple, uncomplicated mechanism of Bitcoin is truly unique and is a breakthrough in our time, and that’s why I think Bitcoin is special and awesome: as a technological invention, as a financial instrument with a limited supply, and as a means of transferring assets. In short, it has so many advantages and absolutely no disadvantages, except for the somewhat high technical entry barrier.

[osasshem]

Price is a major force of attraction before any other thing in the market, while tech wise, it is its security and decentralised nature that calls for its attraction. The presence of total transparency is a another thing around its transaction, and I am sure this is one thing that is also calling in the attraction of the governmental bodies to be able to view these transactions through exchange platforms. In all ways round, Bitcoin is unique and special financial asset for this our time.

[AYOBA]

Even though Bitcoin is very attractive to people due to its high volatility, there are many advantages beyond the price that make people interested in Bitcoin. It has Limited supply 21 million. A valuable aspect of Bitcoin's attraction to people is its decentralized system. There is no conventional system that allows you to keep your wealth anonymous, whereas Bitcoin gives you that freedom. In terms of financial transactions, transparency and fast transactions are only possible through Bitcoin. Its security system is strong. Bitcoin is now not only used as money but also as a digital gold for storing wealth. That is why not only the price but also some of the benefits of using Bitcoin for an individual have attracted people to it.

Yeah, your points are pretty valid what make so many people’s to have so much interest on Bitcoin is because it is a decentralized, is controlled by none or government but only depends on his own which is what give people much attraction to the Bitcoins. Upon the fact that it has limited supply, but look at the numbers of people that are still rushing to purchase it not for anything, just because is a reliable currency that is difference from others coins.

[Agbamoni]

But what do you think gives Bitcoin its strongest long-term value: decentralization, scarcity, security, utility, or something else?

I'd say utility and scarcity give Bitcoin its strongest long-term value.

Originality and decentralization are supposed to be Bitcoin's strongest weapon for long-term value. But unfortunately, institutions have somehow made Bitcoin centralized. Coupled with Trump's interest in Bitcoin.

Utility-wise, Bitcoin is used on crypto platforms for making transactions. And as for scarcity, we have more long-term holders in the game, which makes Bitcoin more scarce than in previous times.

[Stalker22]

But what do you think gives Bitcoin its strongest long-term value: decentralization, scarcity, security, utility, or something else?

People trust the system because of its security that ties everything together.  The network uses massive computing power to protect the ledger.  That makes it almost impossible for anyone to alter past transactions or print more coins.  No one can hack it, control it, or dilute it.  That trust, I think, is at the heart of value in Bitcoin.

~
Originality and decentralization are supposed to be Bitcoin's strongest weapon for long-term value. But unfortunately, institutions have somehow made Bitcoin centralized. Coupled with Trump's interest in Bitcoin.

institutions and governments have centralized the ownership and financial control of bitcoin, but they have not changed how the network operates.  they cannot change the consensus rules, force code updates, or stop users from running independent nodes.  The protocol itself remains decentralized.

[Agbamoni]

institutions and governments have centralized the ownership and financial control of bitcoin, but they have not changed how the network operates.  they cannot change the consensus rules, force code updates, or stop users from running independent nodes.  The protocol itself remains decentralized.

Considering what drives adoption in recent times, we will agree that centralized ownership and total control of Bitcoin by institutions and governments is the big change it's making in the Bitcoin world.

Decentralisation used to drive adoption, but not anymore. Utility is what drives adoption now. It should be what controls the market. Rather, the power to control the market has been passed down to big institutions and governments.