Why is Bitcoin Valuable – Zhihu (Why is Bitcoin Valuable?)

Why is Bitcoin valuable? Zhihu recently published an article that explains why Bitcoin is so expensive. The article states that in traditional asset categories, “currency” is one of the main reserve tools; “digital gold,” on the other hand, is essentially a store of value and medium of exchange. “Blockchain technology” and “cryptoeconomics” refer to this mechanism. “Now, we say it is cheap.”

For ordinary people, the word “currency” itself doesn’t make sense because “fiat money” is not real currency: “People see it as the main carrier for goods and services.” But with the development and popularization of the Internet, various forms of currency have been given functional use. These currencies can be used to purchase goods, manage wealth, or invest in real estate and other areas. If someone wants to survive in the long term and continue to hold on, then there needs to be a way to pay off debts and sustain livelihoods – that is cash. This ledger is as simple as packaging all bank deposits together, as long as you can remember one point, every computer can record its own financial conditions. However, in order to achieve this goal, you must possess the corresponding private key (mnemonic) and password system to keep them running steadily for a period of time.

Why is Bitcoin Valuable?

According to CCN, based on CoinMarketCap data, Bitcoin has risen by more than 5% in the past 24 hours.

Some analysis suggests that from a historical standpoint, if the claim that gold is a means of value storage is inaccurate, then Bitcoin is a good hedging tool. However, some people also believe that over time, more and more evidence indicates that investors will put their funds into digital currencies, and thus they may turn to Bitcoin for investment. But the question is: “Why is Bitcoin valuable?” In fact, it’s simple because of “what we know” and “understand.” Both of these have similarities. “Understanding” and “knowing” are words commonly heard by people who have used the Internet, and they refer to “information.” So everyone needs to understand the reasons why encrypted assets are so important. “Understanding” means that when someone is willing to believe in something, it will be accepted and exist in the blockchain system – which is something created by humans initially. On the other hand, “understanding” means that anything can be seen as a technological characteristic of trustworthiness, scarcity, or security; however, “understanding” cannot directly define its meaning and how to interpret it.