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nuroxx02

What Gives Bitcoin Value?

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In the digital age, the ideal brand new currency should have at least these three characteristics:

1:   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.

2:   The currency should be borderless, so that it can be easily exchanged across any location with anyone.

3:   It should be apolitical, so as to not favor a specific system or group of people. In a nutshell, these (among many others) are the characteristics of bitcoin, which looks like an appealing alternative to any fiat-based monetary system.

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i think its becoz it has been used by many compny now? thats what i think, it value will change depending on how its being used , being mine and what company and how many company is using it, like based on its demand?

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I know that bitcoin is a pioneer of digital currency and now there are many people who use it to witness and now there are also so many digital currencies that have emerged that increase the high demand for bitcoin.

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You absolutely accurately described all the points, but big people and countries will not allow this. on earth, 1% controls all the means of manpower and they don’t want to lose their control over everything, otherwise their era of wealth will pass, and no one will allow this with such a lot of money now, this is purely my opinion.

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The main thing that gives any crypto a price, is the supply and demand for it.

By definition, a market is a place where buyers and sellers come together to exchange a good or a service. In this situation, Bitcoin is the good that is in the so called “market”. 

Then, you can analyse the supply of bitcoin. Bitcoin isn’t easy to get, if you don’t have the correct equipment to generate one. It takes a lot of energy and it is very risky for investors to generate their crypto, because of the uncertainties in it. This means that the supply of bitcoin is going to be lower than other currencies.

When comparing 1 BTC to 1 USD, one bitcoin is worth around 10,000 times the price of one USD. This is the result of United States Dollars costing just less than $1 to make. However, 1 BTC can take thousands of dollars to mine, already inflating its price about the dollar.

Then, you can analyse the demand of bitcoin. Bitcoin has become more popular with online purchases because of how easy it is. You simply have to create your own wallet and send the bitcoin to another person’s wallet. This means then that it is a universal currency and people don’t have to worry about exchange rates when trading it.

For example, if someone buys an item off the black market online, it is most likely that they use bitcoin to complete their purchase.  Online, people don’t want to ask others for a currency from a country that isn’t theirs. It is easier for them to trade with bitcoin, sell that bitcoin for their own currency and they won’t be tracked.

This gives a low supply of bitcoin, with a high demand. Therefore, the price level equilibrium is going to be high up. This is the cause of the artificially high price.

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1 hour ago, mhasandx said:

the electricity energy for mining. its worth a lot

yeah include time, time is the most precious thing, we cant buy time.. but i think the reason why btc is high on valu is because its the first crypto introduce to public and was used on the market. 

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Value as a collectible (on the same principle as the activities of people who collect rare metals, stones, shells, stamps, paintings and baseball cards).
A value that is based on the fact that other people will find your collectible valuable and want to buy it, thus enriching the previous owner.
To sum up, it must be said that Bitcoins are valuable as collectibles. Their reliability as "guardians of value" depends on the number of people who use them. The more people believe in the seriousness of Bitcoin, the more confidence people have in this payment system.

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On 8/24/2019 at 5:18 AM, nuroxx02 said:

 

In the digital age, the ideal brand new currency should have at least these three characteristics:

1:   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.

2:   The currency should be borderless, so that it can be easily exchanged across any location with anyone.

3:   It should be apolitical, so as to not favor a specific system or group of people. In a nutshell, these (among many others) are the characteristics of bitcoin, which looks like an appealing alternative to any fiat-based monetary system.

Good question and explanation.

But I think what actually gives it the value is because of demand of traders and investors who want quick gains and not truly believes in the potential of Bitcoin in the category of application. 

That's why Bitcoin was hovering under $500 in 2015 and over $17000 in 2017!

Not for the application but due to sheer increase in demand ;)

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I think you say right bitcoin value day by day go up and slowly slowly more exchange site and companies to accept this currency for trading .

But in same time so many countries not allowed this currency and they not support this currency to like a payment so many countries this currency ban .

But in future I hope these countries allow this currency for trading

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Bitcoin offers an efficientway to transfer money over the internet and is controlled by a decentralized network with a transparent set of rules. And btc is first cryptocurrency, people who jumped into crypto world mostly was searching about bitcoin before playing with alt.

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Well, any good or currency has a value because there is a demand for it. And why there is a demand for bitcoin? Because it has attributes listed in the start of the topic. 

I will also point one important attribute giving much value to bitcoin - the scarcity. The number of coins is limited and new emission is quite a complicated process involving expensive equipment and large energy consumption. 

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I agree with you.Deficit and demand strongly influence price

17 minutes ago, Xantys said:

Well, any good or currency has a value because there is a demand for it. And why there is a demand for bitcoin? Because it has attributes listed in the start of the topic.

I will also point one important attribute giving much value to bitcoin - the scarcity. The number of coins is limited and new emission is quite a complicated process involving expensive equipment and large energy consumption.

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The price of the cryptocurrency depends on it:

Limited supply and demand;
The use of blockchain;
Usefulness of currency, ease of use and storage;
Public perception of its value;
Cost of Bitcoins;
Media opinion;
Investor contributions (see Investment in ICO is profitable? ICO market is a cryptocurrency for investors);
Impossibility of fraud;
Innovation;
Anonymity.
Because the cryptocurrency is an emerging market, because of the changes it imposes on the financial system, the market is still unstable. Combined with many of these factors, the price of a digital currency can rise and fall rapidly, making it a risky investment without proper research. However, its merits make it suitable for payment as well as investment, which was one of the original intentions of Bitcoin.

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