Good question. But let’s also ask these questions - Why does gold have value? Why does Diamond have value? Why is an ounce of gold as at this time 1,347.43 to the United States Dollar? I mean, it is just a shining metal coincidentally also in gold colour found underneath the earth. Same as the transparent stone called diamond. Why have men fought and killed themselves over these things?
One answer – Value is what you say value is. Like the popular saying goes, one man’s food is another’s poison. What you value as a tangible material can be an intangible material to another. Let’s paint this scenario, some thousand years ago, a man was digging randomly in the forest, this was after he forgot where he planted his pot after he heard some thieves were raiding the town. Then his shovel hit a hard rock in the ground as he was digging. He then dug out this metal; shinning metal. And that was how the first gold came about. So he took it home, not thinking it had any value. Kept it in his house for show, until a friend saw it. This friend was fascinated about this shinning metal and begged his friend to exchange the shinning metal for a new pot he had just made. He needed a new pot, so he did. And that was how value for the gold started. Like I said in one of my previous post, if it is needed or wanted, then it has value. And if it is rare , then it has value.
Bitcoin, like every other currency has value because people decided to accept and trade it. People decide value. You decide value. But value has to be rare and not littered around. Gold and other precious metal are rare. Bitcoin is also rare. There will be just 21 million of it. I hope this answers your question.
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