The first and most influential crypto coin, Bitcoin, is still the most valuable. If you had invested in Bitcoin four years ago, trading at $ 3000 in 2018, your investment would now be worth around $16000. This is not the highest bitcoin value, once it reached around $50k. That is insane, and this is why everyone who became familiar with bitcoin wants to know how it gets its value and why it is worth so much.
Why Are Bitcoins Worth So Much?
Hundreds of cryptocurrencies have been invented and launched, some of which have failed, while others, such as Ethereum, Dash or dogecoin, are still doing great. However, Bitcoin remains unmatched when it comes to popularity as well as price.
This can be observed in the increasing interest and demand for Bitcoin. Several reasons contribute to Bitcoin's popularity among other cryptocurrencies, such:
The first reason behind Bitcoin's high value is that it is used more than any other cryptocurrency. More than five million businesses worldwide now accept payments in Bitcoins, and its acceptance rate has continuously increased since its inception.
It is not only businesses that accept Bitcoins but also many individuals who have started accepting payment in the form of Bitcoins. People accept Bitcoins as they lower the transaction fees over traditional payment methods.
Another reason behind Bitcoin's high value is its large number of users and holders. Despite the low market cap compared to other top 20 crypto coins, it still constitutes most of the total cryptocurrency market cap. Millions of clients hold their crypto funds in Bitcoin addresses across the globe.
How Does Bitcoin Get Its Value?
Bitcoin is often referred to as a peer-to-peer currency and is classified as a cryptocurrency. Its supply schedule was designed to decrease at such a predictable rate that when bitcoin mining ends in the upcoming 100 years, it will still leave over a million bitcoins to be mined. There is a lot of speculation about why Bitcoin has such a high value. One reason is that a limited number of Bitcoin are available to buy.
Creating new bitcoins involves solving difficult mathematical problems requiring enormous computing power and time. There's also the principle behind this as more people use bitcoin, then the value multiplies with its popularity due to supply and demand laws.
What Determines The Price Of Bitcoin?
Various factors determine the price of bitcoin, which is how it gets its value and is currently one of the best cryptocurrencies.
There is a specific cost of producing bitcoin through mining, and that also determines the price of the bitcoin. All these factors are the reason why bitcoin value is currently trading so high right now in the market................................................................................
If you want to know what the price of bitcoin will be within the next ten years, our bitcoin price forecast can give you a really good idea of what to expect, you can check the link below or enter our chat rooms and talk with crypto enthusiasts and traders.