Why does BTC have "value"?

Jan 29, 2025221

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The value of the US dollar is backed by the government, and without it, the dollar would be worthless. Similarly, Bitcoin has gained value because people believe in its price and are willing to support it. When individuals voluntarily back an asset, it establishes its value. Mathematically, Bitcoin's non-monetary value is zero, making it an ideal form of currency.

The value of the dollar comes from the backing of a country and the underlying anchor. If the United States no longer existed, the dollar would be worthless paper. Why does it have value? Because people believe it has a price, more people will back it. Now that Bitcoin has a price, naturally, people will back it. When people voluntarily back something, it has a price and value. Moreover, from a mathematical perspective, the non-monetary value of Bitcoin is zero, making it the best candidate for currency.

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November 19, 2024
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