Before we start I would like to say that this is NOT FINANCIAL ADVICE AND IS FOR ENTERTAINMENT PURPOSES ONLY.

So what does value mean? Value is "the importance, worth, or usefulness of something." Going by that definition Bitcoin is valuable, but someone asked me this question of whats the value in bitcoin and I've been stuck on it since. So I've narrowed it down to 3 things that give bitcoin value.

The first thing is the blockchain itself. Once you post a transaction onto the blockchain it's guaranteed to come through on the other side. So this adds a level of trust to the chain but is still not enough to justify the value of bitcoin. 

The second thing goes hand in hand with the blockchain. It's the miners that mine the bitcoin. I personally think that this is the reason bitcoin has such a high value because all of the miners have to spend money to earn bitcoin. The estimated cost of mining 1 bitcoin is about 13,000$. Now that is value because you have to spend at least 13,000$ to get a single bitcoin. There is a problem with this though that bitcoin has a limited supply of 21 million bitcoins. So what will happen once all of the bitcoins are mined? First of all, this will probably not even happen in our lifetimes but it's estimated that all the bitcoin will be mined by the year 2140. Which is a whole 120 years away. It's possible that some new technology will come along and change that because once the mining stops there will be nothing to validate the network rendering the network useless until a new invention comes along.

The third and final thing is the usefulness of bitcoin. Right now it's not that useful it just acts like a benchmark for all crypto assets. Some of the reasons it's not that widely used is that it has lots of fees attached to it, it's slow and very volatile at times. These are just some of the reasons why bitcoin is not that usable. That's not to say that other cryptos are just like this some cryptos have very low gas fees and are very fast. So right now I feel it's so that bitcoin has value as long as people continue buying and mining it.

So that's what I have for you today. Thanks for reading and have a great day.

KuCoin

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