Currently the value of bitcoin is only being used as a resource of value with which to speculate, in a way it has its logic, since it is a new technology that until now due to its ignorance by governments and users, apart from the news manipulation around it, has not yet received a massive adoption, therefore users who trust this cryptocurrency can only follow it in a purely speculative market.
While it is true that bitcoin is and will be a resource of value, the volatility of the current market makes people reluctant to invest in the cryptocurrency.
A market that on the other hand has not yet found a ceiling which means that until it finds “its place”, the increase and decrease in the value of bitcoin will be something that we must get used to at the moment.
As there is an increase of acceptance in bitcoin, cryptocurrencies in general and the adoption is massive on the part of users and companies, a trust will be created and the bitcoin project will acquire maturity. It will be then when we see the true value of bitcoin and its technology that have come to revolutionize the economy as we know it, as well as finding greater stability in its price value.
What is Bitcoin’s value?
The value of bitcoin is something more than an economic value, this technology has been created for many other things that are still unknown by the vast majority of people and this is one of the reasons why its adoption grows slowly.
In Crypto Economy we will detail which are the most important characteristics that give bitcoin a value beyond the monetary:
Unlike fiduciary money, bitcoin is not controlled by banks, governments or a big capital, which is one of its main characteristics and one of bitcoin’s greatest value.
Redistribution of wealth
We currently live in a world dominated by banks and large fortunes, which pressure citizens, put abusive taxes and earn fortunes by playing with their money.
Bitcoin wants to put an end to these excessive techniques that do not let people grow, this is one of the reasons why many banks and governments are against this technological advance that could put a stop to much of its power.
The owners of bitcoin have total control of their assets, it does not need a bank that keeps or manages your money and also charges you for it or that through the fractional reserve law are not even required to protect your reserve capital, only around 10%.
Thanks to its decentralization, bitcoin offers a greater economic freedom than the current monetary system and a protection against government excesses who are free to access your bank account and extract what they consider appropriate, whether legitimate or illegitimate.
It also protects you from a centralized system where if you do not agree with a generalized criterion they can exclude you, remember what happened with wikileaks donations through paypal, visa or mastercard.
It can not be falsified
Bitcoin has been created so that it can not be falsified, this happens thanks to the blockchain that registers and verifies every transaction made. If an attempt is made to introduce a false transaction in the blockchain, it will be rejected and invalidated.
The user has total control over their money and can make use of it anywhere in the world without having to make a currency exchange, it is also possible to make cross-border transactions faster and cheaper compared to the current system.
The use of bitcoin does not need intermediaries, since the transactions are made peer to peer.
Unlike fiat money that is created at the whim of central banks, bitcoin has a limited number of units.
21 million BTC will be the maximum number of bitcoin coins in the world and it is not possible to create more.
If we add to this the errors of some people who have lost their bitcoins by losing their wallet or password, it reduces even more the number of units.
This fact makes the value of bitcoin (economically speaking) increase, since the scarcity makes it more “exclusive” and therefore worth more.
History of Fiduciary Money
To understand bitcoin’s value a little better, we must understand how money was valued before and how it is valued now.
In the beginning, the value of money was equivalent to the value of its weight in the metal in which it was cast, after some modification in this type of value measurement, the paper money arrived, which means that the money was backed by a quantity of gold based on the value of the currency or banknote, this was called the gold standard, which went bankrupt in 1971 and the money became fiduciary.
That the money is fiat, means that it has no support beyond its legal value, which is given by banks and governments. Hence its name, fiduciary in Latin means trust or faith, which is what the current money is based on.
What similarities does Bitcoin and Fiat money have?
Fiduciary money has been accompanying our lives for almost 50 years, but both fiat and bitcoin, the new virtual currency, have things in common.
Currently, both the value of bitcoin and the value of fiduciary money are based on the same, the faith and trust placed in them by the community.
Even so, it is one of the weapons that is used against bitcoin, that it does not have any type of support, it is curious to see that fiduciary money has not had it for a long time either.
The true value of Bitcoin lies in its technology which allows a real alternative to the current economic system.
Both are forms of payment, both bitcoin and fiduciary money can often be compared to virtual money, since when we pay with a bank card, carrying out a transaction, or we buy a possession, in many cases it is money that we do not get to see physically and the only verification of its existence are numbers on a paper or a screen.
What do you think about the value of bitcoin? Do you think that bitcoin will be adopted globally? Are you interested in bitcoin and everything about it? If you liked the article or want to give your opinion, do not forget to comment, share and do not stop following us!