Bitcoins have value only because people believe they do. This is true for most currencies, even government fiat currencies - they're only viable as long as people believe in the governments that back them.
Bitcoin is somewhat protected from inflation because there is an absolute limit to the number that will ever exist. There will never be more than 21 million Bitcoins total. As more and more people want to use Bitcoins, the value of each BTC will rise, because of the increased demand. That's the hope and the theory, anyway. We won't know for sure until we all wait and see.
Bitcoin is somewhat protected from inflation because there is an absolute limit to the number that will ever exist. There will never be more than 21 million Bitcoins total. As more and more people want to use Bitcoins, the value of each BTC will rise, because of the increased demand. That's the hope and the theory, anyway. We won't know for sure until we all wait and see.