Bitcoin Value – How Is The Value Of
Bitcoin Determined
Bitcoin has recently received a lot of attention. It's one of several digital currencies that exist today that act and operate like conventional money but are totally electronic—like data in computers.
And this might be perplexing since, if there is no actual physical bitcoin:
• What is the worth of digital currency?
• How can it be used in the real world?
Actually, the question of how bitcoin has any value isn't all that unlike from how most real-world money has value.
To begin with, Bitcoin has no inherent worth, which implies it is of limited utility to us outside of its economic context. However, most real-world currencies are the same way: money only has value because the government that provides it says it does.
Because its value is not connected to any actual product and relies on the backing of a government, this is referred to as 'fiat money.'
Bitcoin, unlike conventional currency, does not have an issuing authority that assigns value to it. Bitcoin is a decentralised currency, which means that its creation and transactions are not governed by any central authority.
It is not subject to any government or organization's control.
So there's no reason why anything should be valuable, but it is, and it all comes down to utility, scarcity, and supply and demand.