As most of us know what Bitcoin is, let us get a bit more clarified information on why is this so valuable nowadays. Bitcoin was launched in 2009, as world’s first private currency which was decentralized. Also, it has no physical existence, rather it exists within a network of a series of computers which are linked within the network. However, the idea is not entirely new as the US dollars are usually in virtual accounts rather than the typical physical form of money.
Bitcoins are more or less created with the process of using a computer and completing complicated and difficult mathematical formulas. However, the creator of Bitcoin, who is not yet known to the world, had the idea of setting a limitation on the total number of tokens that could be generated for the whole world. The maximum amount that will be created is 21 million tokens. This idea is likely to be inspired from the basic economic concept that if a good, service or currency has an increasing demand from the potential consumers while it has a limited supply, the price for the particular good, service or currency will start to rise and continue to do so as long as the demand for it is still rising and it continues to have a limited supply or even better if supply starts to fall due to increased sales. Bitcoins are versatile in their range of uses. These tokens can be sold or bought using other currencies and the fact that some individuals accept Bitcoins as a form of currency to make transactions while buying or selling goods makes Bitcoin valuable to a certain extent.
If you want to know more about why Bitcoin carries value, you could satisfy your curious mind here. As we know, Bitcoins is not a physical commodity which has intrinsic value like. Also, it is not accepted as a means of trade in most place, unlike dollars. Some of the reason why Bitcoin is valued and why its value is increasing are stated below:
Bitcoin is popular in the mass. Its value appreciated mainly because it has an image of being the world’s first digital currency and some people even accept Bitcoins for trading.
Also, it is a decentralized currency. This means that this currency does not have any central authority looking over the tracks on where the money goes. Moreover, it is private. This allows individuals to keep their transactions private and within themselves. This can be helpful for those people who would not want any irrelevant people to get to know what his transactions were about which would invade his privacy. Also, it is difficult for the government to trace the money and put a tax on it. The limit set on the total quantity of Bitcoin tokens available helps to limit and control how much the currency would lose its value due to inflation.