raaman
Valued Contributor
The Value of Bitcoin depends on...
Bitcoin has value and the value of Bitcoin depends on the relationship between supply and demand for the coins on the market. The greater the market demand for the same total supply, the higher its value and therefore its price.
Conversely, in the case of lower demand, its value will decrease. The value of Bitcoin depends only on the market. To understand this concept better, think of Bitcoin as gold, that is, a limited resource of only 21 million Bitcoins will be created.
It is because a defined algorithm manages its generation. This indicates that, once this number is reached, new Bitcoins will not be created. This numerical limit makes Bitcoin a limited item, the value of which will depend only on the market.
Bitcoin has value and the value of Bitcoin depends on the relationship between supply and demand for the coins on the market. The greater the market demand for the same total supply, the higher its value and therefore its price.
Conversely, in the case of lower demand, its value will decrease. The value of Bitcoin depends only on the market. To understand this concept better, think of Bitcoin as gold, that is, a limited resource of only 21 million Bitcoins will be created.
It is because a defined algorithm manages its generation. This indicates that, once this number is reached, new Bitcoins will not be created. This numerical limit makes Bitcoin a limited item, the value of which will depend only on the market.
