Why is Bitcoin Valuable?
Why Is Bitcoin Valuable?
In one sense, you can understand the skepticism. Bitcoin is a novel technology, and most people don’t know how it works. But if you dig deeper, you realize the question isn’t about bitcoin; it’s about money. Why do we value any money? Is it a collective hallucination, or are there some necessary qualities that are so fundamental that we just don’t stop to think what they are?
Bitcoin is an ideal springboard for the inquiry. We accept that a dollar, euro, or yen is valuable because, throughout our lives, they have been. But take a step back and ask the same question about those currencies. Could you explain why they have value? Do you actually know how fiat currency markets work? If you had blinders on and were told you had the option of holding a money that could be printed at will or one with a hard limit, which would you choose to own?
Indeed, bitcoin isn’t yet as widely accepted as the dollar, but then again, it hasn’t been around nearly as long. As people become more familiar with bitcoin, we believe they will quickly recognize that it is superior money.
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