A currency you can’t see or touch is as at this time of writing, 605 to the US Dollars. Now that’s quite something. I mean, it’s not even regulated by any central bank or government, yet everyone agrees with that price.
Very good question – Why do bitcoin have value?
Now, in any business dealings, value is what is being exchanged. It’s not the colored paper or the rectangle plastic card you have in your hands. Many things can serve as a medium of exchange, so far as it has value to the receiver. You can exchange your Nokia 3310 phone for a duplex in Lagos if the receiver values your phone as the worth for his/her duplex. :D You also have to believe that the duplex is the worth your 3310. If it’s not quite for you, you could be collecting change or canceling the deal.
Anything can be exchange for anything; all depends on one’s description of value. You’d say, even the example I gave is something that can be seen and touched. But your understanding of a particular topic can be used as a medium of exchange too. It can’t be seen or touched. But when you pass it, there’s satisfaction from the receiver.
See, what really make gold have value? Why does diamond have value? I mean, gold is just a shining metal, coincidentally also colored in gold, found underneath the earth. Same as the transparent, colorless stone called diamond. Why did man fought and killed over these things? They saw value and still see value.
Bitcoin, like every other currency or medium of exchange has value because people decided to value it, accept and trade it. People decide value. You decide value.
So am looking forward to two things:
(1) Your own currency
(2) And someone who would love to exchange his/her duplex for my 3310. :D
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