Post
Topic
Board Bitcoin Discussion
Re: What is the value of Bitcoin? What is bitcoin secured by?
by
Vickyrichy
on 13/12/2018, 23:28:18 UTC
The price of bitcoin is formed exclusively by supply and demand for it. Bitcoins are not secured by any tangible assets, but the same situation is with any Fiat currencies, rubles or dollars. It is wrong to assume that bitcoin is provided with electricity spent on its mining or the cost of a bitcoin farm. The difficulty of solving the cryptographic problem during mining varies according to the network hashrate used to find the latest 2016 bitcoin blocks. If the number of miners and the electricity consumed fall several times, then the complexity of mining will simply decrease and the process will stabilize again. So the value of bitcoin and its purchasing power lies only in the public's trust in it.
Definitely... but it does not only depend on the public's trust. It entails the deeper understanding on the whole concept behind blockchain technology. The world needs to embrace this new technology and adapt to meet its revolutionary changes and advancements. The value of bitcoin strongly depends on how people really understand the whole principles behind bitcoin and cryptocurrency.