@vagarwal
8 months ago

What gives bitcoin and other cryptocurrencies a financial value?

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Value is always subjective. However, I think the qualities that cryptocurrencies have which are driving enough individuals to value them (so they have financial value) are:

Scarcity
Immutability
Censorship Resistance
Trans-portability
Network Effect

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Bitcoin is the master/prime cryptocurrency among cryptomarket. So Bitcoin have already proved its existence, importance and value against fiat. While considering other cryptocurrencies, price of them are solely depends upon price of BTC against fiat.

And the most important thing is proof of work. Which require huge amount of electronic power to maintain network stability and security along with transparency.
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Demand and Supply
decentralization
security


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The belief that they are worth something
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There are several financial benefits to Bitcoin. I think its financial value in comparison to traditional money is measured in the following ways.

Deflationary - All you have to do is hold $100 in an account for 12 months, to realize how inflation works on
on money. Bitcoin's deflationary characteristics are a major deal.

Price Appreciation - If you look at the history of bitcoin on a chart, you will serval cycle of extreme pull backs
followed by exponential gains.

Transfer Fees & Speed - For the speed and price you get from using cryptocurrency, no tradition currency
compares.

Market Transparency & Control - The technology that runs the cryptocurrencies networks allows amazing
control and understanding of what is happening with you funds. This in turn
allows you to control the fees.
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Community behind it.
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Digital/Electronic
+
Fixed Amount
+
Decentralized
=
Modern Commodity/Currency Akin to Gold
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Digital/Electronic
+
Fixed Amount
+
Decentralized
=
Modern Commodity/Currency Akin to Gold
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Demand
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First is blockchain technology, easily transfer between countries. Second is interest of people
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