The digital currency Bitcoin has received a lot of attention, regularly creating headlines, attracting countless investors to consider using it. However, bitcoin does not need to depend on a government or a third party such as banks. The value of bitcoin is difficult to determine. Perhaps many people will wonder: What makes bitcoin’s value?
Basically, bitcoin has value based on the easy-to-understand principle: Because everyone needs bitcoin. Like other currencies, bitcoin is not outside of the law of supply and demand. Looking back a bit, currency has always been a useful tool to make it easier to trade, allowing holders to exchange one commodity for another through trading and use the profits from that transaction to trade. exchange, purchase and sale of other goods.
While the value of fiat currencies (USD, Yen, Pounds, VND …) depends on the government, a currency like gold has its own value. Currently, bitcoin is unlike any other currency because it is not yet accepted globally. There are still boundaries that bitcoin cannot cross yet. However, Bitcoin is still used as a store of money, storage of assets, and other types of services that can be converted into cash.
Bitcoin’s unique value is due, although it is not yet recognized and widely used by the government, bitcoin has created a green system that many people are willing to transact and approve. In fact, many people assume that bitcoin has more value and power than other currencies under certain circumstances, like digital exchanges or cross-border use. Furthermore, since there is a certain amount of bitcoins, there is no need to worry about inflation like cash. In addition, bitcoin has the remarkable advantage of being censorship-resistance. Bitcoin can be used in exchanges. These exchanges, when done in other currencies, often require moderation.
Altogether, what makes bitcoin’s value is the need of the masses and the rare benefits it offers.