What is the practical value of Bitcoin?{Keywords}: Bitcoin, practical value, digital currency

What is the practical value of Bitcoin? According to CCN, as of June 30, 2019, there are approximately 3.16 billion Bitcoins in circulation. Based on the transaction prices in 2018, the value of this batch of coins is estimated to be around 1.5 billion US dollars (based on current prices), ranking fifth in global market capitalization, surpassing stock markets, gold, and silver in countries like the United States and Canada. The practical value of Bitcoin is yet to be confirmed. However, from a market perspective, does it have any practical value? The practical value of Bitcoin can be used to measure its fundamental attributes and economic model.

Firstly, Bitcoin is a digital currency created by computer technologists. This digital currency is open-source, and its technology has undergone security verification, with its own rules. Moreover, the system executes transactions automatically through smart contracts and ensures the security of data sources using distributed ledger technology with encryption. The second characteristic is anonymity.

What are the uses of Bitcoin

Editor’s Note: This article is from Cointelegraph China (ID: CointelegraphChina), written by JOSEPHYOUNG, and authorized for repost by Odaily Planet Daily.

The decentralized nature of Bitcoin allows it to play a crucial role in financial transactions and settlements without third-party or government intervention.

As digital assets are increasingly used as a means of value storage, payment methods, or portfolio management tools, people can purchase and hold Bitcoin as a daily savings instrument. Although most people do not understand these things, we know how it works – and there have been some use cases to illustrate this. What is Bitcoin? Cryptocurrency is a virtual form similar to other legal currencies, mainly used to facilitate cross-border trade and exchange of goods and services. This means that anyone can access a network controlled by a specific set of entities. Due to the verifiable immutability of blockchain technology, trust in third parties is not necessary, and everyone keeps it highly secure, making it a reliable investment choice. Bitcoin also provides another form of “gold” to help maintain the dominance of the US dollar, despite its high price volatility and the ease of loss. Why does this happen? Bitcoin is the world’s first world currency backed 100% by gold and is currently one of the most popular two cryptocurrencies.

The main functions of Bitcoin are:

1. It is a medium of exchange for value.

2. It supports global business activities.

3. It will empower businesses.