Why are Bitcoins worth anything at all? They only exist virtually, if I understand correctly.
- What exactly makes Bitcoins valuable?
- Does Bitcoin in particular have a future?
(7 votes)
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Because supply and demand results in a price
And because you can exchange Bitcoin for goods and services.
Here is a map with shops:
BTC Map
Where can I pay with Bitcoin? Find over 2,000 providers! (coinpages.io)
Listings Archive ₿ Coinpages – Pay with Bitcoin
Vouchers for all sorts of things.
Pay online in Germany with crypto or Bitcoin – Bitrefill
Europe's largest Bitcoin online shop
SHOPINBIT – Europe's Biggest Bitcoin Store
Bitcoin isn't a get-rich-quick tool. It's designed for saving and paying.
Bitcoin is a deflationary, absolutely scarce, immutable, censorship-resistant, decentralized, indestructible, portable, and divisible protocol of freedom, based on truth and without a ruler.
Fiat money is a system that imposes printed money on its subjects, the supply of which is arbitrarily and effortlessly inflated by centralized powers, thereby devaluing your hard work and purchasing power at zero cost.
https://www.youtube.com/watch?v=QIZe-20JBtQ
Link collection
https://linktr.ee/bitcoinknowledge
Well, that's awesome. There are 13 stores in Germany's second-largest city, and none for everyday needs. How did I ever get by without them? Probably because I never wanted to buy an illegal HK MP5.
Theoretically, you can pay with Bitcoin ANYWHERE. You just need to store your coins with a provider that issues cards (like debit cards) and automatically calculates the exchange rate. There are now several of these
Mhhm, I pay for beer and food every week with it…
Rome wasn't invented in a day. There was a time when there were no debit cards or emails…
https://www.blocktrainer.de/blog/diese-deutsche-stadt-soll-zur-bitcoin-city- Werden
Probably because I never wanted to buy an illegal HK MP5.
Why not? Something like that always comes in handy 😉.
That's the difference between free money and imposed currency…
Now I believe that too.
As @archibaldesel wrote, the links above contain addresses that are unsuitable for everyday use.
Each reader should click through to their own location to see which shops might be suitable for them. In an effort to separate the wheat from the chaff, they will notice that there is virtually no wheat.
Although you have already received some answers, I would like to add the following:
Why shouldn't something that exists only virtually be valuable/have a price? There are many things these days that are purely virtual:
The difference is that these days, we use these things in our daily lives and don't question their usefulness. When the internet and computers came along, however, things were different. Even today, my grandfather can't make sense of all that stuff and would say it's worthless. It takes time for people to understand new technologies and their benefits. There's a transition period, which we also had with computers and the internet. It's taken many decades from their first appearance to today.
I would even go a step further and consider global commodity and stock trading as "virtual". Of course, officially, if you buy gold, for example, it says in some database that you own X grams of gold. But that is only virtual and even so, very few people would question why that is valuable. In reality, it is only an entry and you have to question whether it is really that valuable. The value there too only comes from demand. Without that, gold would crash despite its industrial use because demand would not be nearly as high. And the same is true for many stocks.
So, one can conclude that Bitcoin is the same as other asset classes, with the only difference being that with Bitcoin you can actually prove how many Bitcoins you own and you cannot create more at will.
Bitcoin's properties and utility are what make it valuable. It is the world's first and only truly decentralized cryptocurrency, independent of central points of failure. Bitcoin is a global network that can be used and traded all over the world. The likelihood of it being stopped is therefore quite low, as global consensus is very rare and Bitcoin is difficult to achieve, as you would have to get into the minds of every single person. For example, although Bitcoin mining is officially banned in China, there are still miners in China (accounting for about 20% of the global hashrate).
I believe Bitcoin is the new store of value and the money of the future, as we're misusing things with gold, real estate, and stocks, since our fiat money is no longer a store of value. The purpose of all these isn't really to be a store of value, but rather a raw material for processing, a property for living in, and a business with a purpose and use. However, with all three, the focus is often solely on the store of value, which will sooner or later migrate to Bitcoin because it's clearly the better store of value. Little by little, more and more people who aren't stuck in the pre-internet era are realizing this.
I only see Bitcoin here, since all other cryptocurrencies only pretend to be better than Bitcoin but in the end are not decentralized or too insignificant and the network effect is on Bitcoin's side.
The value of a thing arises exclusively from demand. What drives this demand behavior is irrelevant. The price tag itself provides no information about the value of a thing.
These are all goods that bear no comparison to Bitcoin. These are consumer goods purchased with a means of payment. Here, money is converted into pleasure, technology, or knowledge.
Bitcoin, on the other hand, is designed as a medium of exchange/payment. Essentially, it simply means that you use your euros to buy another currency. However, this doesn't fulfill its intended purpose. Bitcoin serves no purpose as long as it sits in your wallet, unless it is used as an object of speculation. The same applies to other currency speculations. However, the speculative behavior differs enormously, since other currencies, unlike Bitcoin, are currencies that finance states and build their economies upon them.
The company's rudimentary acceptance of Bitcoin as a means of payment isn't motivated by any higher ideological agenda, but rather by purely pragmatic considerations. On the one hand, they don't want to ignore the trend and miss out. On the other hand, they earn more with Bitcoin than with other currencies.
This view is somewhat short-sighted. Value is always subjective. If I compare two cars side by side, I don't evaluate them based on demand. Instead, I look at the data and features and then conclude that I like one car better because I like the color or the features are better. The price is then determined based on demand.
You are simply confirming my statement.
Firstly, this should only be an example of virtual things. And secondly, do you consume things like MS Word? You buy/pay for it and then use it. And the same is true of Bitcoin. Today, it's primarily a store of value, but increasingly, it will also be usable as money.
Of course. Your problem is your subjective opinion, with which you simply deny Bitcoin any usefulness.
If you understood my answer, you'd realize that these days, EVERYTHING is used as an object of speculation. It's legitimate to use Bitcoin as such, and in the future, I see it serving not only as a store of value but also as money.
That's more of a problem than a plus point.
Thank you, one more plus point 👍🏻
@TapRoit 2021 you're confusing something:
" Virtual " describes something that doesn't physically exist, but exists only as a simulation or mental representation. Examples include virtual worlds (e.g., in computer games) or virtual reality (VR).
" Digital ," on the other hand, refers to things based on electronic technologies and existing in the form of data or software. Music files, videos, software, emails, or cloud services are not virtual, but digital.
In addition, products such as emails, learning platforms, software, music, videos, etc. offer clear practical benefits:
Bitcoin, on the other hand, has no direct practical use in everyday life.
It is not a tool that can be used productively, like software or platforms.
Its main purpose is to function as a cryptocurrency , although it has only very limited use as a means of payment.
It is primarily viewed as an object of speculation , with the hope of increasing its value.
Apart from its financial potential and enormous volatility —meaning a high risk of loss—Bitcoin offers no tangible or functional services.
When you buy Bitcoin, you're just getting hot air . Or to put it another way:
You buy an entry in a database (the blockchain) that states that you own a certain amount. That's it. There are:
What you really get:
Essentially, you are buying a bet on trust :
Without this trust, it remains a worthless digital illusion that neither uses nor produces anything, but only exists as long as enough people believe in it.
By the way: I don't believe in it. Because its virtual lack of substance makes Bitcoin a digital mirage , sustained only by collective illusion.
As with any bubble that eventually bursts, the last ones to be left behind will be the ones who get the short end of the stick. And these are usually hundreds of thousands of small investors who can only react to the crash once the large investors have pulled the ripcord first, perhaps even partially salvaging their shares.
In the end, there are simply no more buyers willing to pay the previous purchase prices for the insubstantial certificates. And then it's time to be brave and take the losses.
🔴🔴🔴
Therefore, extreme caution should be exercised with such a high-risk investment.
🔴🔴🔴
Conclusion:
In every financial bubble speculation so far, there were initially enormous price gains before the price then plummeted into the abyss.
And with every financial bubble speculation so far, there have been certificate holders who hyped up the price potential with their visions and concealed the risks. So, dear TapRoot 2021 , you're not the first. 😐
@Mogli333 2021 It's great that you're helping to make Bitcoin more popular, but you have a few errors in your thinking that I'd like to point out, even though I think it's pointless in your case:
Which word you use, whether virtual or digital, is secondary. The fact is that there are many things that you can't touch and yet still receive value from people.
We already discussed this topic in a recent conversation. Imagine yourself 30 years ago; all of this already existed back then, and many people wouldn't have seen the benefit.
How do you come to the misconception that something is useless just because it's not present in your everyday life? Pretty shortsighted. Besides, as I said, 30 years ago, the same thing was true of the internet and other things. But hey, that never catches on 😜
Of course it can. You're just so narrow-minded that you want to deny it to everyone, just because you don't understand it or don't want to understand it.
As I said, first deal with the topic of money and how something becomes money. It's pointless to argue with you otherwise.
Volatility is part of nature and is even a good thing. Something that never changes is dead.
Of course it does. I already described that to you months ago. Your problem is that you're ignorant and only want to accept your own worldview. It's like if I, a non-smoker, claimed that cigarettes are useless just because I don't smoke.
Incorrect.
True, but that also applies to various things like gold, and it's not an argument. And with gold, moreover, over 90% of its value is just because it's gold. Its industrial utility is less than 10%.
That's just the way money is. Owning a single euro doesn't entitle you to any rights. In fact, over time, you actually get less and less in return.
You're not serious? 😂 Do you seriously think the euro is a "hard" currency? 😂
On value: Value is ALWAYS relative but that probably doesn't make sense to you 🤷♂️
Just a tip: This applies to EVERYTHING. Stocks, gold, everything is a speculative asset these days because fiat money is broken. Bitcoin is the answer. I don't care when you figure it out. 🤑
Oh no, I wouldn't have thought of that. 😂 The fact is, you don't want to understand the substance of Bitcoin because it obviously doesn't fit into your worldview. The idea that other people might view values differently doesn't register in your mind.
If anything is a bubble, it's fiat currencies. People like you have been trying to predict Bitcoin's collapse for almost two decades, and it's getting ridiculous.
Take another look at these prices and compare them with Bitcoin. There's a crucial difference here.
And you, dear Mogli333, are not the first to think you are smarter than everyone else and in the end just have no idea 😐
HFSP 🙋♂️
This is more of a feature of the philosophy behind Bitcoin and creates security. It has no direct impact on the price.
The current value of a Bitcoin is derived from the expected probability of Bitcoin becoming an international monetary system.
Bitcoin is currently limited to 21 million. This means that if Bitcoin is successfully adopted, the entire global economy—every individual, every company, every foundation, every community of owners, every registered association, etc.—would be required to hold it, at least to secure value. Our entire economic output would then have to be covered either completely or largely by Bitcoin. This would mean a massive increase in Bitcoin's market capitalization. The new purchasing power that Bitcoin would then have, likely increased by more than a hundredfold, is the incentive to invest in Bitcoin now.
When the government expands its money supply, the probability that fiat money will fail and devalue increases. This is one of the reasons why Bitcoin benefits so disproportionately from the expansion of the money supply.
They only have value because others want them.
That's why they fluctuate so extremely.
I understand that others have invested electricity costs and time to "generate" Bitcoins or fractions thereof.
But why should I personally care? I would have to have great confidence in the value of such a "Bitcoin," right?
Bitcoin has no intrinsic value. Its value is determined solely by what others are willing to pay for it.
It's like canning air in Spain and selling it here as Spanish air. If someone wants it and is willing to pay for it, why not?
It's not true that crypto is just "hot air" without substance. Bitcoin, for example, is the first globally accepted currency, a kind of super currency. The technology behind it is unique. The concept has economic value. It also has a utility.
If a state comes up with the idea of devaluing its own currency, it doesn't bother the crypto. It's quoted in virtually all currencies. It's a new form of global currency that hasn't existed before. Cryptocurrencies are, so to speak, inflation-resistant at the state level.
However, a loss of value could also occur; that's impossible to predict. Government sanctions, new technologies, etc., would reduce the value. But in its current form, Bitcoin possesses innovative power and economic utility. This isn't just hot air.
OK thanks!
Bitcoin has no value.
Bitcoin has a price. This price is determined by supply and demand. Demand, in turn, is the result of the expectation of increasing demand and thus rising prices.
Christian Rieck summarized this quite well here.
https://youtu.be/AaEBFWp1QMw?feature=shared
Bitcoin is an interesting phenomenon and can certainly serve as a basis for researching socioeconomic behavior.
Bitcoin currently serves no (legal) purpose. You can buy it and hopefully resell it for a higher price in the future. Where does the willingness to pay more for a Bitcoin tomorrow come from than yesterday? No matter when you buy Bitcoin to profit from it, there always has to be someone willing to buy it from you at a higher price. There may be enough people who are satisfied with the thought that there will always be someone willing to pay more, for whatever reason.
For me, however, there's currently only one reasonable explanation for why Bitcoin is fetching such sums, and that's shady business (money laundering, black market trading). In fact, I've witnessed such transactions before. This market actually creates real value for Bitcoin. Transactions in these markets have never been easier.
It's obvious that your knowledge of Bitcoin dates back to 2011…
Not much has happened since then, except that the fanatics have built up a shaky framework of thought that finds no acceptance outside the bubble.
That's how I see it too: it's a gigantic chain letter business
and, like all chain letters, will eventually collapse.
If Bitcoin wasn't anything then why don't you just give me one?
Where exactly do you see the comparison to a chain letter? Can you explain that?
There are a lot of people who don't have access to a bank account and bitcoin allows them to store/send value without central control.
In your opinion, are the following uses not legal?
Just because you don't know where Bitcoin or the network is already being used doesn't mean you have to immediately assume something is illegal. In fact, crime is far lower with Bitcoin than with the USD.
Why do people who clearly have no clue about the topic always have to weigh in? Bitcoin is 1) a store of value like gold, and 2) it has a utility. For example, in many third-world countries, Bitcoin or crypto is used for international transfers to family members—as an alternative to Western Union, which charges exorbitant fees for cross-border transactions.
The EU can't ban Bitcoin; it doesn't have the power to do so, and no one cares about such regulation. Bitcoin mining is already banned in China, yet 20% of the hash rate still comes from China, even though it is subject to draconian penalties.
Not at all. The people who truly understand Bitcoin simply don't want to return to the fiat system to become independent of the state's monetary monopoly. This is precisely why El Salvador is selling Bitcoin so hard. They no longer want to be dependent and want to free themselves from the IMF and the dollar. Fiat currencies are and will always fail.
A price is determined solely by demand. The reason for demand is irrelevant. The reason for demand in this case, as I've written several times before, is the hope that, based on your stated assumptions and ideological nonsense, someone will be willing to pay more and more.
I also don't think the global financial elite would pay so much attention to "nothing"…
Then Bitcoin isn't a chain letter, because I can get goods and services with it or exchange it for fiat money, gold, etc. In El Salvador or Argentina, I can even rent an apartment or pay my taxes with it… This is already possible in other countries, too…
How does a chain letter work:
I give someone money for nothing, except with the expectation that I'll find two idiots who will give me even more money for that. They do it because they hope to find two more idiots each… etc. 4.8.16.32.64.128 etc.
Völlig lost haha
A lot has happened since then.
Bitcoin has gone from being a "strange internet currency for criminals" to a major financial powerhouse, with the world's largest asset managers launching multi-billion dollar spot ETFs, and the question of using Bitcoin as a strategic reserve currency for the US dollar being debated in the US presidential election campaign. Illegal transactions are virtually nonexistent anymore.
https://www.youtube.com/watch?v=zss2sQdzIKA
That shows that you have absolutely no idea but okay xD
Well, good luck on your future path. I hope you don't hurt yourself when the EU regulations are passed next year and your wallet no longer has the value you put into it.
Look at my posts, I can not convey to you several thousand hours of knowledge in one text
Then deliver me from my stupidity and enlighten me.
Haha, absolutely no idea. Apparently I haven't been following the last 2-3 years.
I would describe Bitcoin more as a deflationary store of wealth, far more than a means of payment. The past few years have shown that it has consistently reached new highs. And the current one will be surpassed again…
Gold is almost useless. You can make beautiful jewelry from it, and it doesn't oxidize. But that's almost all you can do with it.
Gold is only valuable because it's rare and because a lot of work goes into it. Gold isn't easy to come by.
But there's something else that makes gold valuable. It's the illusion in people's minds. Everyone believes that gold is valuable. Humanity has agreed for hundreds of years that it is valuable, and so everyone believes in it. It's this belief that makes gold truly valuable.
It's exactly the same with BC. It's only valuable because everyone believes it is. Furthermore, there's a natural loss of BC. Many are sitting on hard drives, forgotten and discarded, or trapped behind forgotten passwords. A lot of BC have already been lost this way. But new ones are still being mined. But at some point, it will end. Then there will be no more new BC, and that's when the price will really skyrocket.
So the whole thing is just an illusion, a belief of the masses and this belief creates hard currency from bits and bytes.
The BC only has a future as long as people believe in it. If that belief collapses one day, all that will remain are bits and bytes.
You know that gold is an important industrial raw material? Gold is found in practically every electronic device. Without the additional industrial demand, the market price wouldn't be so high.
I have left that out for dramaturgical reasons.
The only difference is that the precious metal's value has existed since the beginning of humanity, while Bitcoin represents only a brief bout of hype in history. While Bitcoins can't be multiplied, anyone can create their own coin. There's no sensible reason why Ether or Bitcoin should have any real value in the long run.
I think that sooner or later the whole thing will collapse and the "coins" will become worthless like the Amsterdam tuplet onion in the first documented stock market bubble in history.
Unlike stocks or virtual assets like patents, music tracks, etc., which can also become worthless, coins have no real-life utility. Their only value comes from existing demand, i.e., people who greedily speculate on further price increases.
Unlike real currencies, there are no national economies or state banks behind them that can back the currency with real collateral. If a major crash occurs, the total value will be zero.
By the way, the hype has long since passed its peak, the price is no higher than it was in 2021… for the past three years, one has only been able to profit from the fluctuations, but also lose a lot of money.
No real benefit for you… People without access to the monetary system, especially in developing countries, already recognize the benefits of Bitcoin. You don't have to explain to a Nigerian why Bitcoin makes sense.
Yet, Bitcoin has survived every major crash and subsequently risen to new highs. Funnily enough, after a crash, Bitcoin settled at roughly the same level as the second-to-last peak. Somehow, your assumption doesn't hold true. For some reason, Bitcoin is being bought like crazy at low prices…
What you call "real" currencies (we call them fiat currencies because they are created out of thin air) are primarily backed by the national debt of the countries in the respective economic area. A very small portion is also held by central banks in gold, but this only accounts for a fraction of the money supply issued.
If there were a crash here, meaning major debt restructuring or something similar, then our money would be truly worthless. This was one of the reasons why Greece couldn't be allowed to leave the euro during the debt crisis.
Alternative two would be for the government to print new money to bail out the states, but this would also lead to a devaluation of its own currency. The real pyramid scheme without value is fiat currencies.
Banknotes are like that, too. They're no longer backed by gold.
Exactly. They're even much easier to reprint than Bitcoin.
Because people currently believe that Bitcoin is worth something.
Bitcoin is currently a pyramid scheme that only works as long as people keep putting more and more money into it.
What many hope Bitcoin should be in the long run – we are still extremely far away from that
Ja klar, ein Schneeballsystem, das seit 15 Jahren existiert??
What exactly makes Bitcoins valuable?
The castle-in-the-air theory, in which a fool is born every minute—for the sole purpose of buying one's own investment at a higher price than one paid for it. Any price is right, as long as others might be willing to pay even more. This isn't based on logic, but pure mass psychology.
Does Bitcoin in particular have a future?
BTC is no protection against government actions, nor is it suitable for surviving disasters. Comparing BTC with gold is too weak, as the latter has physical durability, while BTC depends on the continuous maintenance and interest of people. BTC will collapse if it is neglected even once.
The origin of the cryptocurrency hype was the prolonged period of low or negative interest rates, which led to financial market dysfunction. Low interest rates created asset bubbles without actually helping the economy and merely created malignant tumors like Bitcoin.
Amen
It's better to get to grips with the technology behind it, and you'll quickly realize how much you lack in knowledge about Bitcoin…
The money that every citizen worldwide has in the bank does not exist in reality either.
Especially during massive currency fluctuations, many people want their money, but the banks don't have it. (The last bank run I know of was during the Greece-is-bankrupt situation.)
Bitcoin and cryptocurrencies deprive the state (primarily the EU with its key interest rate policy) of its power in monetary policy.
The increase and loss of value is of course a risk. As with stocks, the price fluctuates rapidly and one should closely monitor this market when owning crypto.
Es ist ein etabliertes Zahlungsmittel, zahlreiche Unternehmen akzeptieren mittlerweile Krypto. Es hat globale Akzeptanz.
Of course. It's an established means of payment. I can't stop laughing. When was the last time you paid at the supermarket or hardware store with your Bitcoins?
Do you pay with gold in the supermarket?
Lieferando, Burger King, Rewe gift cards, etc., Netto vouchers, and many restaurants accept BitPay. It's not yet possible at the Netto checkout, but then you can simply sell your Bitcoins and have money on the card.
Acceptance means that one can be sure that the BC can be resold at a certain price. There is absolutely no doubt about that anymore.
Besides, Edeka, for example, doesn't even accept Amex, which is irrelevant.
oder man nutzt Bitrefill.com
This is one of the absurdities on this planet and is one of the most comparable:
A diamond is nothing more than compressed coal dust and yet infinitely more valuable than a sack of coal.
Gold is just one of many metals but one of the most expensive.
Bitcoin is a purely electronic asset and yet incredibly expensive.
There was once speculation with tulips. They became incredibly expensive and soon worthless.
Could this be the case with Bitcoin? I think it's possible.
Tell me you have no idea without saying you have no idea…
Ach, der Tulpensammler meldet sich.
Bitcoin has nothing in common with tulips. Tulip mania has more to do with the futures/options business…
Weil Spekulanten daran glauben, und Kriminelle eine anonyme Währung gebrauchen, um ihre Waffen- und Drogengeschäfte im Darknet abzuwickeln.