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- Bitcoin is a cryptocurrency that can function as a store of value and a unit of exchange1. Bitcoin has value because its supply is limited and its demand is increasing1. Bitcoin is also costly to produce, as it requires computing power and energy2. Some people argue that bitcoin is just a bubble driven by speculation2, while others believe that bitcoin is useful or has the potential to be useful in the future2.Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.
Key Takeaways
- Bitcoin has value because it can function as a store of value and a unit of exchange. ...
- The definition of value in a currency has changed over centuries from physical attributes to the velocity of its use in an economy.
www.investopedia.com/ask/answers/100314/why-d…Why Is Bitcoin So Valuable?
- 1. It’s costly to produce. Many in the bitcoin community claim that bitcoin is valuable because it is costly to produce. Each bitcoin represents the computing power used to produce it, they say. Computing power is valuable. ...
www.aier.org/article/why-is-bitcoin-so-valuable/ - People also ask
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WebJan 6, 2021 · But increasing the supply of money erodes its value and leads people to look for inflation-resistant assets to hold. In this climate, Bitcoin has become a hedge against looming inflation and...
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