Bitcoin you know is the digital currency that is making waves with its price surges in spats and bursts. It is suddenly riding the wave of popularity because it happens to be a safer and faster transaction and the fees are much cheaper.
And if that is not all, it is decentralized which means there is no one to control you if you have Bitcoins. You yourself are the owner. No one has absolutely any say over your property. These are also some reasons why it is riding the popularity crest so high. So, if you are planning to trade Bitcoins, you can visit https://meta-profit.app to help you out in your trading journey.
Why Does the Dollar Have Value?
The dollar is part of the class of fiat currencies that have been present with man for many years now. Every fiat currency has some key attributes that make it a valuable form of currency and a safe transaction mode. The dollar being part of the bandwagon of fiat currencies has its values due to some attributes that you could read as divisibility, scarcity, portability, acceptability, resistance to replication and durability.
These attributes are responsible for making your currency safe to be used. It also helps to check inflations in the economic system. Thus, you can say that the dollar is a safe currency that you can use every day.
But can you say the same of Bitcoins or for that matter any of the thousands of cryptocurrencies that are available in the market? No, you cannot because cryptocurrencies are minus these attributes. Again, if you look at the dollar from the value point of view, then it does have a store of value that you can safely retain over a period of time. It is very stable when you compare it to the crypto market. This is the reason why man has used it as a means of payment over the years.
Fiat currencies even replaced the barter system. And there are multiple reasons for it. But one particular reason why fiat currencies are valuable is that they are portable. It means you can carry your dollars around relatively easily. That means that you can carry a small amount of currency in your pocket but when you count its value, it has a high value as compared to goods in the barter system.
The dollar has some amount of value because it can excite trade within an economy and outside of it. Although the dollar does not have the backing of any commodity, aka gold, yet it has the backing of consumers who have faith in it. And this gives the dollar its value. It steps up one step further in its value when you can say that it is highly durable and less prone to loss due to its stability.
Why Do Bitcoins Have Value?
Now it is time to look at the value of Bitcoins. The value of Bitcoin comes partly from the modern thinking of man.
Bitcoins get their value from the fact that they are decentralized and have a sense of freedom and power to it. This is what people crave for today. With the advent of online shopping and online transfer of money, Bitcoins have gained in their value. It has made life relatively easier for almost everybody. There are over-the-border transactions that are initiated in minutes with Bitcoin transactions. This you do not get to see with fiat currencies.
You can keep a track of all your assets that are limited to the blockchain. It is a public transaction but it is considered to be safe. You cannot reverse the transaction once it has been made. No one can empty you of your crypto assets. Bitcoins cannot be duplicated which helps to crash an economy with the help of counterfeit notes. Being considered as digital gold, it is a great way of investing your money.
Conclusion
Though you know that Bitcoin is notoriously famous for being highly volatile, it is one of the most sought-after investments because of the steep price surge that it experienced between 2010 and 2020. It saw a rise of 9,000,000% increase in its value. This makes Bitcoins a highly valuable asset that anyone could dream of having and trading with.
