What gives bitcoin value?

The value of bitcoin is a difficult question because so many miss it the first few times they hear about bitcoin.

  • One value is a set supply.   This helps to build confidence that this token will be scarce in the future. There will only be 21 Million bitcoins according to the software today.  We are not quite sure how many dollars the federal reserve has created since it was found out that they created secret loans to corporations during the 2007 financial crisis.
  • Another value is uncensored transactions.  Today it seems that more and more people are not allowed to make transactions with others according to the powers that be. You might even say that we may be creating the enemies of the future by denying them the ability to transact in the present.
  • Bitcoin grows in price and value as more people are able to transact inside the network and less people need or want to convert the bitcoin into fiat/cash.  Though, there are people who buy bitcoin to look to “cash out” later with great fortunes.  Others say bitcoin will crash to zero as there are not enough dollars to hold the price up to the market price as everyone trades back into fiat/cash.
  • We are the value.  As we continue to transact inside the network, the network gains value.  Imagine a small community who trade gifts as they help each other create things of continued use for the group.  If their basic financial needs were able to be met, you could start to see the wealth of the community grow.

These are the things that I have learned in my time with bitcoin.  I hope they help you to think of bitcoin a little differently.