Quote from: kemoglo on March 27, 2020, 10:10:26 PM

I think you're missing a key third factor - people give it value. This utility and scarcity could not be enough, the fact that people who use bitcoin think it has value also gives it value. This third factor I'm talking about is what made it rise so much during 2017, utility and scarcity might have got it up to $2k on 2017, but it was people's perception what got it to $20k. It's also why it crashed so fast, but still the point is valid, it's when there's equilibrium between these that you get a stable price.

Exactly. People are the ones who determine the value of a Bitcoin. This is completely different from Fiat where a central authority is the one who determines the value of the currency being issued to everyday people. Considering that Bitcoin is decentralized, anyone can determine its path forward both in terms of price and mainstream adoption. Bitcoin is still valuable because there are people supporting it in the mainstream world. Since the pioneer cryptocurrency is censorship-resistant and resilient against external attacks, people have considered it to be a valuable asset within the mainstream world. Take away Bitcoin's decentralization and you'll see how worthless it'll become over time. The true value of Bitcoin lies in its underlying technology (Blockchain) which provides unparalleled security, reliability, and freedom unlike any other asset in the mainstream world. It's often compared to Gold because of this.

As long as there are real use cases for Bitcoin in the mainstream world, it'll continue to be a valuable cryptocurrency for years to come. It's very unlikely it'll ever lose its value, as many people trust it after all these years. The pioneer cryptocurrency serves as an alternative monetary system that does its job well in providing financial freedom to anyone without the fear of getting funds frozen or confiscated by a third party. No what happens in the mainstream world, there will always be a use for Bitcoin because of its decentralized nature. Just my thoughts Grin