HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
Vantage information and reviews
Vantage
85%
XM information and reviews
XM
82%

What Makes Bitcoin Valuable?


The digital currency Bitcoin has a dedicated following, regularly makes headlines and inspires countless investors to consider making digital currency part of their portfolios. Yet it enjoys the backing of no government or third-party entity like a bank, and it can be hard to understand where its perceived value comes from. So, you may be asking, what makes bitcoin valuable?

Fundamentally, bitcoins derive their value just as anything else does: because people want them. Like any other currency, bitcoin follows the basic rules of supply and demand. Currencies have always been useful tools to make trade easier, enabling holders to convert goods into a widely tradable commodity through sale, then use the proceeds of that sale to purchase nearly anything they wish.

While fiat currencies derive value from the governments that back them, currencies like gold are valuable in and of themselves. Currently, bitcoin isn’t like other currencies in that it is not universally accepted. There are limits on what it can be used for. While not backed by a government or valuable by themselves, bitcoins are still used as a store of value, a placeholder for the goods and services that they can be exchanged for, as with traditional currencies.

Bitcoin derives its unique value from the fact that despite its lack of official backing or wide acceptance, it has generated an ecosystem in which many people are willing to trade and accept it. In fact, some perceive bitcoin to be more valuable, or more useful, than other currencies in that it is a better option for certain purposes, such as seamless digital transfers and use across borders. Also, because there is a cap set on the total number of bitcoins that will ever exist, the currency cannot be devalued through inflation as others can. Finally, a key benefit of bitcoin is known as “censorship resistance,” its ability to be used for transactions that could normally be censored by other payment networks.

So, in short, the answers to the question of what makes bitcoin valuable are some of the things that make every currency valuable and some that make bitcoin different from others.

#source


RELATED

Things Football Can Teach Traders

As the 2022 FIFA World Cup countdown is fast approaching, football fans from around the globe are picking up the pace to gear up for the world’s most popular game...

Six Habits of Successful Investors

You won’t make a fortune at the snap of your fingers unless you’ve won the lottery or received an inheritance. Wealth should be the result of a systematic approach...

Mastering Bond Trading in 2023: Strategies and Insights

Bonds, often known as fixed income securities, remain a fundamental financial instrument for both governments and corporations, allowing them to raise capital for various projects and operations...

Most liquid currency pairs: how to trade them

Let’s delve into the captivating realm of trading highly liquid currency pairs, exploring the ebbs and flows of when these pairs experience a downturn or an upturn...

Choosing a broker to trade the financial markets

Choosing a broker to help you navigate the financial markets is an important decision that can significantly impact your trading experience. There are several key factors...

What is CFD Broker?

Let’s jump into what CFDs are, what a CFD broker is, and how to go about choosing one that bests suit your trading needs. Contracts for Differences (CFDs) are a type of derivative instrument...

Fundamental analysis for forex trading

Fundamental analysis examines the price movement of assets. It does this by studying related economic, financial, and geopolitical factors that impact the price...

The Role of Traders and Investors in the World of Finances

In the realm of finance, two distinct yet interconnected entities hold significant sway: traders and investors. Often, these terms are used interchangeably...

Common mistakes to avoid in forex trading with CFDs

Read on to find out some common mistakes to avoid when trading forex with CFDs. The foreign exchange market draws a lot of new traders' attention due to its low entry requirements and extremely high liquidity (on average, more than $7.5 trillion is traded daily)...

Why traders shouldn’t underestimate an Economic Calendar

Brace yourselves for the ultimate weapon in your trading arsenal - an Economic Calendar, revealing the future of financial markets. So, why should you care?

Precious metals trading made clear: an Octa guide

With its unwavering commitment to clarity, the international broker Octa unravels another facet of trading. Grasp the essentials of precious metals trading in an uncomplicated, transparent manner...

The Reasons Why 90% of Crypto Traders Lose Money

Even though trading as a whole, and cryptocurrency trading, in particular, is a potentially vastly profitable endeavor where one can make as much money in a month...

The psychology of forex trading – overcoming common biases

In this article, we explore the common biases experienced by forex traders across the globe, and how to overcome them...

The Evolution of Modern Investment Methods: An Exploration of Copy Trading and PAMM Services

Investment methodologies have traversed an intricate journey, and in today's digitized world, they've undergone a significant transformation. The ubiquity of the internet and cutting-edge computer technologies...

Common Emotions that affect trading psychology

A trader’s psychology can have a significant impact on their trading success. This is because psychology is driven by one’s emotions and behaviours, all of which drive trading decisions, good or bad...

A Complete Guide to Social Trading

Social trading has been rising in popularity among young traders due to the transparency that comes with this option. Like its name suggests, social trading can be thought...

Deepening the Understanding of Forex Trading and Its Learning Curve

Forex trading has seen a substantial surge in interest, evolving as an avenue for achieving financial freedom and diversification of investment portfolios. For prospective traders, the journey to mastering forex trading may seem daunting...

Safest Forex Brokers: Prioritizing Security and Trustworthiness

When it comes to choosing a forex broker, safety and security should be paramount in your decision-making process. The reputation and security measures implemented...

Top Trading Tools for Forex Traders

Forex trading can be exciting and richly rewarding if you do it rightly. Trading with the right set of tools that are specifically designed for Forex trading will...

Best Divergence Indicator in Forex Trading

Profit is what all traders aim at while working on the stock market. They use a variety of helpers to reach the goal. The most profitable trades are built on thorough analysis made by means of special programs...

FP Markets information and reviews
FP Markets
81%
RoboForex information and reviews
RoboForex
77%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Exness information and reviews
Exness
76%
Just2Trade information and reviews
Just2Trade
76%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.