Why does Bitcoin have value?

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Money for the modern era

The idea of Bitcoin [https://swapped.com/blog/what-is-bitcoin] started during the financial crisis of ‘08. Satoshi, an anonymous entity, was fed up with how banks had absolute control over the financial system and published the Bitcoin whitepaper, which explained the basics of a new decentralized digital cash. Not so long after, the first block of the Bitcoin blockchain was mined.

Bitcoin happened to be the best combination of cash and gold. It combined the scarcity of gold and the divisibility of the US dollar. It empowers individuals to take control of their wealth by owning an asset that appreciates over time. Finally, users make their own decisions and have true ownership of their money.

Word on value

Value is a word you may have heard multiple times. How is it defined? Basically, value refers to the worth or significance we attach to something. The idea of value can be objective or subjective, depending on the context. For instance, family heirlooms, unless made from precious metals, are of very little worth.

As humans, we’ve always assigned immense importance to objects of rarity. From gold to diamonds, such objects hold greater value because they are hard to obtain. On the contrary, common items can’t be valuable, because they are, well, common.

How does it all connect to Bitcoin? Humans, in order to trade, always tried to develop money. Initially, the sole purpose of money was to exchange value. Throughout the ages, societies have advanced, developed, and craved the perfect money—not only for transacting but also for storing value. At first this was gold; now it’s Bitcoin.

Digital gold and perfect cash

Bitcoin is the new shiny object everyone talks about—it’s obvious. What makes it special, and why is it the ultimate ultrasound money?

Decentralized
Unlike the banking system, Bitcoin isn’t controlled by a central entity. It operates on a peer-to-peer network, making it censorship-resistant and protected from government interference. In order to stop Bitcoin, every node would have to be shut down, which is nearly impossible.

Secure
All transactions are verified by miners rewarded with coins for their effort. The cryptographic technology is the foundation of this digital currency and ensures its integrity. Fiat currencies are backed by faith; Bitcoin is backed by math.

Scarce
There will only ever be 21 million coins in existence, making it even more scarce than gold. The limited supply of Bitcoin increases its value over time as attention follows and fiat currency debasement continues.

Globally accepted
Both as a medium of exchange and a store of value, Bitcoin is recognized and accepted worldwide. In its early days it had a bad reputation of being used by criminals, but with recent developments and institutional interest, it is now being viewed in a more favorable light.

Durable
Bitcoin is digital by design; thus, it cannot be destroyed or lost. It is securely stored as a blockchain record, immune to physical damage or theft. As long as you own your keys, you can access your coins.

Divisible
Unlike gold and just like cash, Bitcoin is highly divisible. A satoshi, the smallest unit, is equivalent to 0.00000001 BTC. This feature in particular makes it possible to not only store but also use Bitcoin for purchases.

Transparent
All transactions on the Bitcoin blockchain are saved on a public ledger, making it easy to verify and trace them. While personal information is not disclosed, this ensures a degree of privacy and pseudoanonymity.

Borderless
Any individual is able to send a relatively swift and low-cost transaction across borders without the need for any middleman to be involved. Bitcoin is available everywhere and provides access to finance even in the poorest regions on Earth.

Adoption and the future ahead

With Bitcoin taking over and more institutions adding this digital gold to their balance sheets, the buying pressure is here. It’s not just retail investors that accumulate; enterprises have joined too. The further development of Bitcoin may include quantum-related improvements and minor updates to secure the future of the network, but Bitcoin has already established itself as the best-performing asset of the decade. As time flies by, Bitcoin may turn out to be the next reserve asset held by major countries. One is certain: BTC is here to stay, and as the saying goes, “If you can’t beat them, join them”.

Ready to invest? Choose Swapped.com

Swapped.com was founded in 2021 in Aarhus, Denmark, by Thomas Franklin and Jonathan Bau, who had a vision to create an easy way for people to buy and sell cryptocurrencies worldwide. Fast forward to now; what has been just a concept evolved into a platform used by hundreds of thousands and created a shockwave in the industry that has even made the biggest players take notice.

Transparency isn’t optional—it’s essential, which is why the platform provides an overview of competitive fees to let users make informed decisions. This is exactly the reason why Swapped.com is the best way to Buy Bitcoin [https://swapped.com/buy/bitcoin] online.

*This article was paid for. Cryptonomist did not write the article or test the platform.

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