I've just watched the John Oliver show about cryptocurrencies and something struck me about what he said:
" like most currencies, the fundamental reason that bitcoin has value is that people agree that it has value"
I just want to know your thoughts on this. I only have a little understanding about the idea of currency and its value although i've already been at it all my life. Im new into this kind currency and right now its plumetting.
It is not that simple but like everything in the world, all bought and sold in the market are given value by the law of supply and demand. It is the market that decides if something has value and how much.
A good example is gold. The value it has today is because of the price the people are willing to buy it for. But trap those same people in a desert and sell them water or gold, then I believe water would be more in demand, making it more "valuable".
Bitcoin struggle a poor value this past few months, although now its starting to climb back but its not enough because its still consider a low value after it reached $20k last year.