Post
Topic
Board Economics
Re: If Bitcoins aren't tied to a conventional currency how did they get so valuable?
by
el kaka22
on 20/11/2018, 08:55:39 UTC
If Bitcoins aren't tied to a conventional currency, how did they get so valuable?
Supply and Demand. People all around the world get bitcoin for couple reasons, some buy it because they believe it will get higher in price and make them rich, some buy it because they want to buy some other crypto but can't buy it directly with fiat, some buy it because they want to gamble. I can continue to list the reasons why people buy bitcoin but in short people just buy it for some reason and since they buy it sometimes the price goes up.

Depending on how many people are selling their coins and how many people are buying coins the price either goes up or down. It looks "valuable" to you but the price has actually reached 20 thousand dollars at one point which shows that people actually bought bitcoin at 20 thousand dollars thinking it would still go up. Supply and Demand determines the price.