What Makes Bitcoin Valuable?

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What Makes Bitcoin Valuable?

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Four special characteristics distinguish Bitcoin from traditional money, making it an attractive store of value and a suitable means of payment.


One Bitcoin can be divided into one hundred million units, called satoshis.

They can be used for microtransactions or as a currency for everyday purchases.


Bitcoin can’t be destroyed as it’s purely data-based.

As long as the blockchain network operates, it will continue to guarantee the currency’s existence.


Bitcoin is limited in supply to help it store value, similar to precious metals.

Since the currency is designed to mimic the scarcity of gold, there is a finite amount of 21 million Bitcoins that will ever exist. 


With a decrease in Bitcoin’s supply and steady demand, its value is expected to rise.

New units will enter circulation until around 2140 with the rate of supply being reduced by built-in mechanisms.

One way to gauge the market's attitude towards cryptocurrency is to use the Fear and Greed Index. 

This index ranges from 1 to 100, with higher numbers indicating a greater degree of demand for Bitcoin.

If the Fear and Greed Index is 78, how’s the market feeling towards Bitcoin:

"Bitcoin is a remarkable cryptographic achievement, and the ability to create something that is not duplicable in the digital world has enormous value."

Eric Schmidt


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