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- Several factors contribute to the value of Bitcoin12:
- Limited supply: There will only ever be 21 million bitcoins in existence.
- Demand and market sentiment: Investors' interest and demand impact its value.
- Use as a medium of exchange: Bitcoin can be used for transactions.
- Role as a store of value: Some see it as a hedge against inflation and economic instability.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.A bitcoin has value because it is able to be exchanged for and used in place of fiat currency, but it maintains a high exchange rate primarily because it is in demand by investors interested in the possibility of returns. Of course, many other factors influence Bitcoin's value.www.investopedia.com/ask/answers/100314/why-d…Understanding the key factors that drive why Bitcoin is valuable is crucial for anyone interested in the cryptocurrency market. The limited supply, demand and market sentiment, its use as a medium of exchange, and its role as a store of value all contribute to Bitcoin’s value.crypto.com/bitcoin/bitcoin-value-what-drives-btc-wo… - People also ask
Why Do Bitcoins Have Value? - Investopedia
Cryptocurrency displays the same attributes a fiat currencysystem does. Here's how it meets them: 1. Scarcity: As the supply of unrewarded coins diminishes, demand increases. There will only ever be 21 million bitcoinsin existence. 2. Divisibility: Bitcoin is much more divisible than fiat currencies. One bitcoin … See more
Throughout history, many items have been used to exchange value—such as shells, beads, animal skins, and precious metals. In this respect, these items are regarded as "money." Money … See more
Like all forms of currency, Bitcoin is given value by its users, supply, and demand. As long as it maintains the attributes associated with … See more
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