Bitcoin Isn't Evil, and Here's What Gives it Value
What Gives Bitcoin Value? - Timeslifestyle
Bitcoin - The Currency of the Internet
A community dedicated to Bitcoin, the currency of the Internet. Bitcoin is a distributed, worldwide, decentralized digital money. Bitcoins are issued and managed without any central authority whatsoever: there is no government, company, or bank in charge of Bitcoin. You might be interested in Bitcoin if you like cryptography, distributed peer-to-peer systems, or economics. A large percentage of Bitcoin enthusiasts are libertarians, though people of all political philosophies are welcome.
Hello Reddit, I was just recently introduced to the idea of Bitcoin and how it functions. Though I am still unsure on how it seems to have gained such value, for a thing that has no physical properties. So, I would really love it if someone would be able to explain to my why Bitcon has so much value and what gives Bitcoin value. I am relatively new to Bitcoin and other cryptocurrencies in general, so any help would be awesome! Thanks!
If you take 1 BTC and 1 USD to Mars today, then both will have equal value, which is zero, because you will not be able to buy oxygen (or anything) for it. But, in future, if someone starts selling oxygen in Mars and accept only bitcoin, then value of USD there would still be zero but value of bitcoin would be extremely high. So, doesn't matter what the money is backed by (gold or math), its value is determined by its acceptance. imho
I understand how bitcoin works, but what makes it worth something? This currency is not backed by any bank, government or asset so what give it value? Right now I just see many people saying that it is valuable which I consider to be price surges driven by speculation. I want to understand the fundamentals before I decide to invest.
What Gives Bitcoin Value? Unless you’ve been living under rock, chances are you’ve heard of Bitcoin by now. Along with hearing about Bitcoin you’ve likely also been told about its rising market price. At the time of writing this Bitcoin is currently trading for $15748 USD. That’s a lot of money for a piece of code that can be transferred around on the internet. The question most people have on their minds after discovering Bitcoin, or any other cryptocurrency, is what gives it value? I hope to help shed some light on this subject. The main price driving force of Bitcoin is quite simple. It’s supply and demand. The supply part is easy to explain. There is currently a little over 16 million bitcoin in circulation. There will only ever be a maximum of 21 million bitcoin. The last 5 million which are not in circulation yet will be distributed through a computer process known as mining. Currently a new 12.5 bitcoins are distributed approximately every 10 minutes to successful miners. The process of mining for bitcoins becomes harder and harder as there is less available. The reward (amount of bitcoin you get) for mining also becomes less and less until the year 2140 when the last bitcoin will be mined. Having a cap of 21 million bitcoins makes it a scarce commodity. Bitcoin is not like a government issued fiat currency, such as the U.S. dollar, where the Federal Reserve can continue to print more and more causing inflation. Bitcoin is literally anti-inflation. Rather than going down in value, it is more likely to go up. Another factor contributing to this is that many bitcoins are presumed to be lost. Owners of bitcoin can lose their private keys and if you do, there is no getting it back. A bitcoin without a private key will be out of circulation and lost forever. There are rumors of a man who lost millions of dollars in bitcoin because he threw out an old laptop which had his private keys on the hard drive. A lesson learned the hard way for him. Now that we’ve covered the supply of bitcoin let’s talk about the demand. Market demand is the main driving force currently for Bitcoin. Bitcoin has value basically because people agree that it does. Bitcoin is traded on exchanges from people all over the world, 24 hours a day, 7 days a week. Bitcoin exchanges work on a peer to peer platform where you can trade fiat currencies for someone’s bitcoin. What people are willing to bid or pay for Bitcoin fluctuates a lot on these exchanges and hence we have a ton of volatility. When Bitcoin was first introduced in 2009 it’s first hurdle was if people would buy into the technology behind. People weren’t sure if they could trust the technology. Now we are past that and many people have adopted blockchain tech as a feasible and trusted means of currency. But ultimately the driving force behind Bitcoin’s price is what people are presently willing to pay for it. It helps if you think of Bitcoin as an asset like gold or silver and not so much like a US. Dollar. Gold is a valuable asset, but what makes it valuable and what determines its current price? The market! And it’s exactly the same with Bitcoin. The market for gold can go up or down. It all depends on what people are willing to pay for it. There are actually a lot of optimistic speculators who claim the market cap of gold is the potential market cap of Bitcoin. The current market cap of Bitcoin is 160 billion while gold is at 7 trillion. If these speculators are correct we could see Bitcoin rise a lot higher. Read more at: http://coinspacenews.com
Hello all, Im new to bitcoin and wondering how does bitcoin get its value? What makes it rise and what makes it fall? Is it from the amount of miners that give it value? or the amount of people buying/selling the coin? Still confused how bitcoin gets its value.
What gives Bitcoins value compared to gold or Fiat Currency
Wrote down something to use while arguing with stupid people about how and why bitcoins have any "real" value. Please comment and add what i have missed! Gold Gold derives its value from the trust people have in the fact that it will hold its value. A self fulfilling prophecy. If we are to argue that bitcoins are not backed by anything tangible, consider that gold neither is backed by anything except the above mentioned psychological circle jerk. Gold has no intrinsic value, gold is valued on the basis of demand, demand exists because gold has properties that make it difficult to manipulate in terms of amount and counterfeiting. Gold can represent a value in a reliable manner even for an extremely long time period and without the need for advanced infrastructure. An extremely small percentage of the gold's value also depends on the demand in production. Given that one can not create gold out of thin air it will require an effort in order to obtain. Gold volume corresponds to performed work. Currencies backed by gold requires review of the gold stored relative to the currency amount to prevent manipulation of the system. Fiat Fiat Currency derives its value from the threat that you must pay taxes in that currency. This, combined with government manipulation gives a stable value. Currency amount is not limited and can be extended arbitrarily, the result is that the currency can not represent a certain value over a longer period of time. Currency is created through debt. Fiat currency is created out of nothing, a debt is created on one side of the balance sheet and an asset to other. Fiat currency does not represent work or a service that has been performed but it represents a debt somewhere in the banking system. Fiat Currency systems also have the disadvantage of being extremely unfavorable for managing your savings yourself. In a fiat money system you are almost forced to have the money in a bank in order to function normally in society. You simply do not have control of your money and that allows for banks to parasite on your assets without your knowledge. Bitcoin Bitcoins derive its value from the fact that it is a reliable record of the work you have performed. Through decentralization, the system is extremely reliable, some parts may fail, but the system will not fall apart. The system lacks a hub or central point that can be manipulated or controlled. Through the encryption and authentication mechanisms, currency in circulation can not be manipulated as is happening today with fiat currency through fractional reserve banking for example. Through the currency being fully electronic, no institution is needed to verify your assets. You as an owner can have full control over your assets and nobody can parasite on them without you knowing. The same fact results in the bitcoin system being totally dependent on a well working infrastructure. Bitcoins, just like gold, corresponds to work performed, the value stands in relation to the work you performed, the value of your work is determined by supply and demand. Deflation is a condition in which the money supply decreases, This does not happen with bitcoins. Money supply is limited and so, it can represent the limitations of the resources contained in the financial system (the world). In an economy where a certain amount of currency is equivalent to a percentage of the total assets, the value of goods decrease steadily as the production becomes more efficient, in other words, you spend less percentage of the total assets to produce the goods. This is not deflation, but price change based on increased efficiency.
WHAT GIVES BITCOIN VALUE? Bitcoins built-in limit of 21 million coins makes it SCARCE, which gives it demand as a collectible. That DEMAND gives it value, which then allows it to be traded as money. As more people join the network, it becomes secured by a growing amount of FAITH. Like gold, BELIEF that Bitcoin will be valuable in the future inflates its value in the present. Finally, Bitcoin derives most of its value for one reason: People accept it as a currency. If no one accepted Bitcoin as currency, then it would have no value. However, this isn’t the case. Bitcoin is accepted as currency in many stores and by a few governments. This means that you can use your Bitcoin as an exchange of value. What Gives Bitcoin Value? In the digital age, the ideal brand new currency should have at least these three characteristics: It should be free from the control of any authority so that it cannot be manipulated and printed at will (and devalued), and nobody can tell anyone what they can and cannot use it for. The currency should be borderless, so that it can be easily exchanged across any ... Bitcoin is touted as a private, decentralized digital currency. But what gives the leading cryptocurrency value? Bitcoin and any other cryptocurrency remains unbacked by a government. Bitcoin isn’t pegged to gold or the US dollar either, so what gives it a value deserving of the market cap of large tech companies? If you want to brush up on what Bitcoin is, here’s a very basic explanation of blockchain technology. Speculative Value
Ep. #232- Why Bitcoin? What gives it value? - 2017 North American Bitcoin Conference
Hey cryptonauts! Thanks for joining me. Today we are going to be talking about what gives a bitcoin its value. At least for some, bitcoin is seen to have both scarcity and utility. That makes it valuable. » Subscribe to CNBC: http://cnb.cx/SubscribeCNBC About CNBC: Fr... The real value of bitcoin and crypto currency technology - The Blockchain explained - Duration: 6 ... MMT: What Is Money And What Gives It Value? - Duration: 5:10. Deficit Owls 6,964 views. 5:10 ... ! Remember to subscribe and hit the bell "" icon, so you don't miss your daily cryptocurrency news! -~-~~-~~~-~~-~- , , . ' : ⭐ Please Support The Channel On ... View full lesson: http://ed.ted.com/lessons/what-gives-a-dollar-bill-its-value-doug-levinson The value of money is determined by how much (or how little) of ...