One of the topics confusing a lot of people is what gives Bitcoin value. The opinions on this topic will vary heavily as there does not seem to be a clear-cut answer to this question. At the same time, there is no wrong answer to this question as there is a combination of things that give Bitcoin its value, despite there being no real “need” for digital currency at this time.
Also read: How To Short Bitcoin? What Gives Bitcoin Value? A Difficult Question
It is all but impossible to say Bitcoin has intrinsic value, as there is no apparent need or desire to use digital currency over any other form of payment. Governments do not accept Bitcoin, nor can you use it to pay your taxes. Plus, the value of Bitcoin is always linked to traditional currencies, such as the USD, EUR, CNY, and GBP.
But what gives Bitcoin value, albeit not an intrinsic one? Usability is an interesting topic to touch upon, as there would be no reason to give Bitcoin value if people could not use it as a payment method. Merchants and service providers all over the world accept the digital currency, even though most of them convert it to fiat currency on the fly.
Perhaps it is the blockchain technology what gives Bitcoin value? The answer to that question is both yes and no, considering how the technology is open source and can be used by anyone regardless of Bitcoin itself. While it is certainly true the Bitcoin blockchain is a versatile tool; people will have a hard time accepting this to be the reason for what gives Bitcoin value.
Furthermore, there is the questionable status of Bitcoin. Is this digital currency a commodity? Some countries seem to think so. But it is also a […]
