Why bitcoin has value !

[DviouS]

Technically, everything is scarce (except perhaps U.S. Dollars), so this in itself doesn't create demand. 

Initially, there was demand for Bitcoin because people believed that it could be useful. You then go through the info-graphic to the last stage, where Bitcoin's usefulness has grown exponentially due to network effect, which in turn stimulates more demand...   😲

[Etude]

Nice quick straightforward explaination from the given graphic abiut what gives Bitcoin its everchanging fluctuating values.

[DviouS]

Figured it could help shed some light on things for some of the people that don't really fully understand crypto's

[zeriko]

Yeah it's the same exact reason FIAT has value , belief in the system and trusting a transaction!

[AmrShera]

If demand for Betquin grows, interest and research will increase, and investment will undoubtedly be of high value - but there are fluctuations in the market, such as the stock market,

[williamshennie9]

Thanks for posting this. I was wondering what make bitcoin worth something:

Thanks for answering it

[Mlc]

The value of Bitcoin comes from the same reason the US dollar does – it’s a useful form of money that’s used by people to buy and sell things. While the US dollar’s value is supported by the government, which gives it a legal status and uses it to collects taxes, Bitcoin’s value comes from its code. Although it’s not tangible, Bitcoin’s code gives it features of a traditional fiat currency like scarcity, divisibility, portability, fungibility, and recognizability. In addition, Bitcoin is decentralized, can be used without a middleman, provides some level of anonymity, is impossible to counterfeit, and has other features such as programmability.

But the most important reason for current Bitcoin value is that people want to use it to pay for goods and services, store their money, or simply speculate. The more the network of Bitcoin users and merchants grows and the more secure and advanced the system becomes, the bigger Bitcoin’s value in USD and other currencies can get. Bitcoin value history has been turbulent, which causes some people to decide not to accept it.One point to remember is that all currencies, both traditional money and cryptocurrencies, can lose their value. In the case of Bitcoin value today, that could be due to a failure of its network, new regulations, better alternatives or anything else that discouraged people from using it.

any thing to add on feel free to do so ❤️

 

[Shaniqua]

i think it has value because people give it value..                  
if people stop buying  or wanting it then value will drop,               
imagine if that happens... all the energy electricity etc put into it will be poooooff

[clariaaaa]

It is digital currency that has demand and probably everything with demand will get valuable especially when the supply is limited. lol

[jkd123]

High demand. Many people never heard about bitcoin before, when they heard about that, time to time they start to know about bitcoin and other crypto currency. They learn about bitcoin history and story behind.

It's just my opinion.

[Gueen4455]

wow this explanation was  awesome . thankyou

[FotisNt]

Hello, my answer on that is that bitcoin is an innovative digital token system that fully satisfies the requirements of sound money: durability, transferability, divisibility, scarcity, recognizability and fungibility. Bitcoin is digital cash.

How it works: To track who has how many bitcoins, bitcoin uses a single shared ledger called the blockchain, which is distributed on nodes everywhere and replicated over and over. Miners from all over the world then ensure the security of the blockchain, which is what gives bitcoins value. This security method is called proof-of-work, where adding new entries ("blocks") to the blockchain requires computational work. Since all of the blocks are chained together, this means that changing a record on the ledger requires a huge amount of work, with the amount of work required increasing rapidly as new blocks are added and time goes by. After the addition of a few blocks, the previous blocks are forever immutable. Bitcoin and its blockchain are intertwined because the miners are paid in newly issued bitcoins and transaction fees for the transactions the miners process. New bitcoins are released on a fixed schedule and there will never be more than 21 million, currently 15.7 million units exist. Fractions of bitcoin as small as 1/100,000,000th of a bitcoin (a "satoshi") can be used. The computational power of the bitcoin network currently exceeds all of the supercomputers in the world combined. The power of this decentralized network is what backs bitcoin the currency. An interesting side benefit is that the bitcoin blockchain can then be used to support any application that needs an immutable ledger to write to and an easy way of transferring token ownership, where the tokens can represent any desired real-world item, such as property, debt, or stock in a company. This has the potential to disintermediate an enormous number of third party middlemen and disruptively change how we conduct business, which is why more than a billion dollars in venture capitalhas moved to support companies in this space. Details of the bitcoin protocol were first published in 2008 by an unknown person, group, or organization using the pseudonym "Satoshi Nakamoto," and the protocol has been running with incredible stability since 2009. There have been numerous small problems identified and fixed as the network has grown, and there is a lot of vigorous debate about the direction the open source project should go in, but in more than seven years no major flaws or weaknesses have been identified. Because it is decentralized, there is no central point of failure or attack, which means that controversial as it may be, bitcoin is here to stay.

So why does bitcoin have any value? Because things that are durable, transferable, divisible, scarce, recognizable and fungible have value. Bitcoin is all of those things, and all of it is backed by an enormous distributed network of bitcoin miners and a worldwide network of bitcoin nodes. How much value depends on how much people trust bitcoin and how widely used it is, and because that is not knowable at this point, bitcoin is very volatile in relation to other currencies.

[bmg]

i like your visual display .  Its put into simple form. good job.

[Shaniqua]

supply and demand is what makes the world go round.
if there is no one hat wants to buy the thing that someone has... it wont have much value 

[williamshennie9]

At the moment, I would say that the demand has dropped, and faith has dropped significantly. I think this is why the price has fallen so much.

[Shaniqua]

One cool thing i heard once in a documentary is that the amount of money it takes to physically make 1 BTC worth of USD is nothing to be compared...

lets say 3000 dollars  making the paper printing it and costs associated (labor etc) really ends ip costing $7 

but on the otherhand the electricity and hardware needed to make 1btc via mining now costs (example $700) dollars.... 

that is why it retains some value in a ssnss... becusse people have invested time and electricity iniys creation

Thus the value of it will be something at least

make sense? 

[williamshennie9]

1 hour ago, Shaniqua said:

One cool thing i heard once in a documentary is that the amount of money it takes to physically make 1 BTC worth of USD is nothing to be compared...

lets say 3000 dollars  making the paper printing it and costs associated (labor etc) really ends ip costing $7 

but on the otherhand the electricity and hardware needed to make 1btc via mining now costs (example $700) dollars.... 

that is why it retains some value in a ssnss... becusse people have invested time and electricity iniys creation

Thus the value of it will be something at least

make sense? 

I could spend years of my time, money and energy developing a product, but if the market does not like it, it does not matter what it cost me to develop, at the end of the day, the market has spoken.

[Shaniqua]

The people who mine the coin it will always have value to them. That wont ever go away

[DERCRAFT]

American economist Paul Krugman recently asked a question that interests many skeptics: where does the value of bitcoin as a financial unit come from?

Yes, owning bitcoins is fine, but why can their value be equal to a dollar, a thousand dollars or even a million?

In his study, “Bitcoin is Evil,” Krugman wrote:

“... when I ask you to explain to me why bitcoins are of reliable value, they always tell me about what a cool medium of exchange. Even if I buy bitcoins (which I will not do), this will not solve my problem. And the people I interviewed did not understand that these were completely different questions. ”

Coinbase’s spokesman, Fred Ersam, wrote a complex article in response that outlined the arguments used to prove that bitcoins are a valuable asset. Most often called the fact that bitcoins have amazing transaction capabilities. The article is called "Bitcoin is good."

“Currently, the value of bitcoins as a currency can be calculated by summing up the saved money through the use of the Bitcoin payment system, and not other payment methods. If one bitcoin is used for 10 transactions per year with an average value of $ 100, a bitcoin network is 3 percent cheaper than any other alternative. This dynamics persists for 10 years, increasing the value of this bitcoin to 300 dollars. Bitcoins don't even need to replace local currencies. ”

In my opinion, this is not a completely satisfactory answer. To trade something valuable, you need it to have its value. Therefore, to say that bitcoins are valuable because of their effectiveness in trading is a vicious cycle.

Consider this example: if Fred uses the Bitcoin system only to transfer his dollars, the total value of bitcoins is not important to him. It can be either 1 dollar per coin, or 10 thousand. He will send 100 dollars and receive the same amount (the inconstancy of the course is not so important with such a turn).

Identically, other parameters (timestamp security, name systems, smart contracts) do not affect the value of one bitcoin in any way.

So what do bitcoins get their value from?

In the first year of the system's operation, almost no transactions were made, and people spent their efforts on accumulating bitcoins. Only two possible reasons come to mind:

1. Value as a collectible (on the same principle as the activities of people who collect rare metals, stones, shells, stamps, paintings and baseball cards).

2. A value that is based on the fact that other people will consider your collectibles valuable and want to buy it, thereby enriching the previous owner.

Gold is valuable for these very reasons. Not because it sparkles (many things also sparkle), but because it is rare, durable, mobile and affordable for collecting. And falling into the hands of the owner, it can only increase its value in direct proportion to the number of people who want to get it.

When a collectible gains value, it can become money. When bitcoins became valuable, you could take advantage of their excellent financial transaction system. However, the system remains the same, regardless of how many people participate in it. Therefore, the system itself cannot be responsible for the value that people invest in bitcoins.

Supporters

Most Bitcoin supporters love this technology and are upset when they find out that the price of bitcoins depends on the number of these supporters. All of them try to rely on the technical features of the system, but there is no way to measure how deep their faith is.

Everyone personally decides how much money and time to donate to their beliefs. Fred Wilson, for example, loves the Bitcoin system very much, however (as he himself stated earlier), he hardly owns bitcoins. On the other hand, some people invest money without any understanding of what bitcoins are. They are only attracted to the fact that it sounds cool.

There is no rational way that would help determine the real value of bitcoins. In addition, the measurement of value based on the indicators of bitcoin circulation is in itself incorrect, because no circulation exists, and all transactions occur because money already has some kind of value for people. And the frequency of circulation does not depend on the total supply of currency. Bitcoins are often traded only because there is such an opportunity. Gold is not sold often, but much more is valued.

For more information on collectibles and the early history of money, read Nick Shabo's excellent article.

To summarize, I must say that bitcoins are valuable as collectibles. Their reliability as “custodians of value” depends on the number of people who use them. The more people believe in the seriousness of Bitcoin, the more people will increase their confidence in this payment system.

[iamsheikhadil]

On 12/2/2018 at 3:30 AM, DviouS said:

Technically, everything is scarce (except perhaps U.S. Dollars), so this in itself doesn't create demand. 

Initially, there was demand for Bitcoin because people believed that it could be useful. You then go through the info-graphic to the last stage, where Bitcoin's usefulness has grown exponentially due to network effect, which in turn stimulates more demand...   😲

It has value because it has demand lol.

But more specifically it has value because it needs electricity to mine bitcoins and electricity is costly lmao.

Would be nice to know if it's the main factor behind Bitcoin price !

[geka]

да это биткоин  скорее всего валта будущего

потому и в цене очень дорого стоит

[Clon777]

The BTC / USD pair (Bitcoin / US dollar) is the most popular of all currency pairs for bitcoin due to its maximum liquidity level. Its dynamics is quite difficult to predict - bitcoin practically does not respond to the publication of indicators of the US economy, but vividly responds to news, especially from the world of cryptocurrencies. Nevertheless, the classic rules of technical analysis are applicable to bitcoin, which allows you to make highly profitable transactions with the right forecast.

To highlight the advantages of investing in bitcoin, it is important to analyze the main factors of its growth in the coming weeks, months and years. Bitcoin differs from classic currencies in that it was designed to grow in value, and not vice versa. Understanding what this means is important for investing in cryptocurrency. You probably know that the amount of bitcoins that can be mined is limited to 21 million. While governments print new money when they like it, the amount of new bitcoins entering the market is tightly controlled and has a strict limit.

[675675]

Bitcoin plummeted due to mistrust

[philosophy]

In fact, it is very difficult for me to understand what the price of bitcoin depends on and what the price of bitcoin depends on. Thank you for this illustration, I have really understood its cost better.

[niki014]

simpl it has a value cuz people want to buy it 
if no1 wants it it would have a fake value lol
everything is bs