What is the value of bitcoin?

The value of bitcoin has always been controversial. Some billionaires once thought it was "the price that others are willing to pay for it". However, there are many other factors that make bitcoin unique in the competition.

Bitcoin, as a kind of borderless and decentralized asset, is run by computer networks (miners) all over the world. Technically, bitcoin and its price are not affected by any government, market or currency. Sometimes its price even keeps pace with the market, but its value fluctuates with its own rhythm.

Unlike US dollars, gold or other assets, the supply of bitcoin is limited, with only 21 million. Today, the circulation of bitcoin is about 18.6 million. More bitcoin will be released through mining, but the maximum supply will not change. At the same time, the work and cost of bitcoin mining shows where the value of bitcoin comes from.

Bitcoin holders can also store and transfer large amounts of money more easily than other hedging assets such as gold or real estate. For years, bitcoin has been known as digital gold. You can't belittle it. It's not like legal currency derivatives like bonds or stocks. There will be no degradation of bitcoin in 10, 20 or even long term. As long as bitcoin is still there and you keep holding bitcoin, you can make money.

(2021.3.16)