Where does Bitcoin get its value?

valueofbtc

Bitcoins have value because they are beneficial and serve and under served segment of our world. They also have value because they can be used as stores of wealth and are limited in the amount that can be created.

Bitcoins along with other Cryptocurrencies allow people to operate (ie. conduct business and receive payments) outside of the traditional banking system. For example, If you are a citizen of the Philippines working in another country and you want to send money home to your family, Bitcoin can provide the means to do that. The transaction will be done cheaper and more efficiently than using a bank or money transfer service such as Western Union.

While presently the price of Bitcoin and other Cryptocurrencies can be very volatile, holding Bitcoins can provide protection from slowing economies and fraud perpetrated on a people by its government and central bank. Some examples of this are the Weimar Republic, Zimbabwe and currently Greece.

Finally, Bitcoins also have value because they are limited in the amount that can be produced. Bitcoins are limited to 21 million units. This amount will not be reached until the year 2140.

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