Remarkable mainstream interest has shifted to Bitcoin in the midst of rapid growth as the asset recently received more than $ 52,500 per coin. Bitcoin (BTC) has generated a growing wave of interest from large companies, gaining security status and is different from other asset classes. But what makes Bitcoin valuable?
Perhaps one of the simplest answers regarding the value of Bitcoin is that it is “worth what someone will pay for it,” as billionaire Mark Cuban put it in 2019. However, there are a number of other components that go into the equation that make BTC unique compared to with competitors. … While Bitcoin is still young compared to assets such as gold and stocks, it must continue to prove itself and gain strength. Malfunctions are still possible and may also vary.
Bitcoin history and primary use
An innovator named Satoshi Nakamoto published the written framework for Bitcoin in 2008. At that time, the asset went into circulation in early 2009 without specifying the value. BTC is an online community, and over the years it has gained more and more value as an online payment method that does not require sensitive user information. Regardless of the historical price increase, Bitcoin is now often seen as a store of value and has a number of valuable features.
People can buy bitcoins from a cryptocurrency exchange and send them to a wallet that they personally control, on a device or online. One of the benefits of Bitcoin is that users can quickly and at any time send an asset to almost anywhere in the world without disclosing personal information, as well as independently checking their property.
Big player purchases
Over the past year or so, several large large companies have significantly increased access to BTC. Tesla, one of the top 10 companies by market value according to AssetDash, bought Bitcoin for $ 1.5 billion, announced on February 8, 2021. In addition to other companies, Square also announced a Bitcoin transition of $ 50 million in October 2020.
Business intelligence company MicroStrategy bought more than $ 1 billion in coins led by CEO Michael Sailor. Sailor, who used to be a skeptic, now supports the assets. He also personally owns over 17,000 bitcoins, according to his tweet in October 2020.
Recent bitcoin purchases appear to have come amid economic turmoil after COVID-19 gained public attention in early 2020. US authorities increased their cash-printing activities in the months following the outbreak through quantitative easing, leaving the future value of the country’s dollar mystery. …
Rationale for the value of bitcoin
As a limitless decentralized asset controlled by a network of computers around the world (called miners), Bitcoin and its price are not technically linked to any government, market or currency. Sometimes the price moves in line with other markets, while other times the value of the asset moves to the wheel rhythm. Some crypto industry leaders such as Anthony Pompigliano, co-founder of Morgan Creek Digital, see BTC as an unrelated asset.
Fidelity Digital Assets released a Bitcoin report in October 2020, which found that from the beginning of 2015 to September 2020, there was “virtually no correlation between bitcoin revenue and other assets.”
MicroStrategy’s Sailor, ranked fourth on the Cointelegraph’s 100 Best People on Blockchain in 2021, has since entering the BTC arena conducted a series of interviews in which he articulates the valuable aspects of Bitcoin. Sailor said in an interview published by Cointelegraph in February 2021:
“I think there’s a lot more to say about the fact that Bitcoin is a masterpiece of money technology.”
“This is the first successful engineering cash network in world history,” Sailor said after analyzing aspects of science and technology, as well as his research at the Massachusetts Institute of Technology.
“Bitcoin is obsessed with old foresight this year, and it’s an unrelated speculative asset that traders trade on offshore exchanges with quite impressive influence,” Sailor told HyperChange in December 2020. He added: “This turns out to be a turning point. into a new understanding, and it is the world’s best long-term investment safe-haven assets. ”
Sailor went on to mention Bitcoin’s long-term potential as a tool to keep assets out of government control, as well as another mindset that accompanies this use case, and encourages participants to hold BTC for longer periods instead of trading for a shorter period. period. period. – Run to make money.