Home Featured Why You Should Focus on Improving Bitcoin value

Why You Should Focus on Improving Bitcoin value

by bitcoinmining

Do Bitcoin have value

Basically, Bitcoin is a digital currency which offers lower transaction fees as compared to traditional online payments. It is usually operated by decentralized authority. Bitcoin do offer alternative means to central bank controlled fiat money making bitcoin more efficient in transferring money over the Internet usually controlled with a number of set rules and by a decentralized network. Typically, bitcoin is useful to back up a step and hence used as an alternative means to fiat money.

Bitcoin values as compared to fiat money

Wonder why bitcoin has values? Here are some of the information that will make you get a better understanding about the values that Bitcoin has

Utility value

Following the utility value, currency must utility to make it more effective to be easily moved from one place to another. This will enable parties be able to trade in units of the currency for the goods and services. Bitcoin thus has one of the biggest selling points and thus uses trustless and decentralized Blockchain technology.  Hence neither of the party need to establish trust to another person for the system to operate efficiently. With this, it makes it easier to check the verifications on the system which basic to maintenance of the mining of newly established Bitcoin and the ledgers. Bitcoin has value in utility since it is flexible to blockchain technology.

Durability value

Ideally currency must have a reasonable durable period. Fiat currency for instance notes and coins can at times get torn, burned, or rendered unused to some extent. And thus durability value forms a major issues when it comes to fiat currency. Thus, as a digital form of currency, Bitcoin has a tremendous value and it is not prone to these physical harms associated with fiat currency. Thus, it cannot be lost that easily. Bitcoin will still continue to keep existing record of an individual on the blockchain even after the user has lost his or her cryptographic key.

Counterfeit threats value

Typically, for the currency to remain effective it must be durable and not easy to counterfeit them to prevent some malicious parties from disrupting and flooding currency system with fake bills which can affect the economy negatively. With the use of trustless and decentralized blockchain technology, it is therefore very difficult to counterfeit Bitcoin.

Scarcity nature

For the currency to maintain its value of supply, scarcity value is the key element. Bitcoin was initially launched in 2009 with its developers hoping to for a supply token capped at 21 million. But to some extent, the current supply is ideally at 18 million which tends to reduce in every four years. With this protocol, bitcoin assumes a supply of over 19 million come 2022 if the protocol will not change which highly requires computing power engaged in Bitcoin mining. Thus approach is that very different from fait currency since fiat currencies are usually broken into different buckets globally.

Transportability value

 Normally, transaction is usually a key element regardless of currency and it should be easily transferred between different participants to make the currency effective and successful. Bitcoin as a digital currency, transaction is much easily to be transferred between two parties in a matter of minutes .This is made much easier and possible by the help of cryptocurrency exchanges and with very low transaction costs. With Bitcoin it only takes an amount of electricity to transfer currency, processing transaction, maintaining the digital blockchain, and holding any kind of physical Bitcoin representation which can hardly be used when it comes to fiat currency.

Divisibility nature

A successful currency should be able to get divisible into smaller units for it to function across all kind of goods and services and thus it must have the flexibility associated with the divisibility nature. The introduced 21 million bitcoin currency supply is vastly smaller than the supply of fiat money globally. This supply makes Bitcoin to be divisible up to 8 decimal places. This was developed by pseudonymous developer following cryptocurrency technology allowing quadrillions unit of smallest Bitcoin unit to be distributed globally to all economy. The smallest unit of Bitcoin is 0.00000001 which is much greater nature of divisibility compared to fiat currency as well as dollar current.

Related Posts

Leave a Comment