Bitcoin Forum
December 11, 2018, 08:55:47 PM *
News: Latest Bitcoin Core release: 0.17.0 [Torrent].
 
   Home   Help Search Login Register More  
Pages: [1]
  Print  
Author Topic: What is the value of Bitcoin? What is bitcoin secured by?  (Read 139 times)
strannik1998187
Newbie
*
Offline Offline

Activity: 15
Merit: 0


View Profile
December 04, 2018, 08:40:52 PM
 #1

The price of bitcoin is formed exclusively by supply and demand for it. Bitcoins are not secured by any tangible assets, but the same situation is with any Fiat currencies, rubles or dollars. It is wrong to assume that bitcoin is provided with electricity spent on its mining or the cost of a bitcoin farm. The difficulty of solving the cryptographic problem during mining varies according to the network hashrate used to find the latest 2016 bitcoin blocks. If the number of miners and the electricity consumed fall several times, then the complexity of mining will simply decrease and the process will stabilize again. So the value of bitcoin and its purchasing power lies only in the public's trust in it.
1544561747
Hero Member
*
Offline Offline

Posts: 1544561747

View Profile Personal Message (Offline)

Ignore
1544561747
Reply with quote  #2

1544561747
Report to moderator
1544561747
Hero Member
*
Offline Offline

Posts: 1544561747

View Profile Personal Message (Offline)

Ignore
1544561747
Reply with quote  #2

1544561747
Report to moderator
1544561747
Hero Member
*
Offline Offline

Posts: 1544561747

View Profile Personal Message (Offline)

Ignore
1544561747
Reply with quote  #2

1544561747
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
rearwheels
Sr. Member
****
Online Online

Activity: 339
Merit: 250



View Profile
December 04, 2018, 09:37:17 PM
 #2

The price of bitcoin is formed exclusively by supply and demand for it. Bitcoins are not secured by any tangible assets, but the same situation is with any Fiat currencies, rubles or dollars. It is wrong to assume that bitcoin is provided with electricity spent on its mining or the cost of a bitcoin farm. The difficulty of solving the cryptographic problem during mining varies according to the network hashrate used to find the latest 2016 bitcoin blocks. If the number of miners and the electricity consumed fall several times, then the complexity of mining will simply decrease and the process will stabilize again. So the value of bitcoin and its purchasing power lies only in the public's trust in it.
Yeah, agree with you. But unfortunately the price of bitcoin is formed not only by supply and demand. It also manipulated by whales and big players. There is no pure and fair game in it. Definetely it will grow up in future.

dothebeats
Legendary
*
Offline Offline

Activity: 1666
Merit: 1081

Ninja Member


View Profile
December 05, 2018, 02:08:24 PM
 #3

So the value of bitcoin and its purchasing power lies only in the public's trust in it.

Or based on what the public perceives as the value of 1 bitcoin is, not necessarily their trust in it. Let's admit it, there aren't many people left here believing that bitcoin will be successful. In truth, they are just trusting other traders to do the first move and just ride on those waves to get profit, but not necessarily vest their trust on bitcoin in the process. Miners are also trusting the speculators to make some moves in order for their mining ventures to be profitable. The trust goes to the traders ultimately, not the miners and certainly not bitcoin itself.

gurang
Jr. Member
*
Offline Offline

Activity: 308
Merit: 2


View Profile
December 06, 2018, 01:31:17 PM
 #4

The price of bitcoin is formed exclusively by supply and demand for it. Bitcoins are not secured by any tangible assets, but the same situation is with any Fiat currencies, rubles or dollars. It is wrong to assume that bitcoin is provided with electricity spent on its mining or the cost of a bitcoin farm. The difficulty of solving the cryptographic problem during mining varies according to the network hashrate used to find the latest 2016 bitcoin blocks. If the number of miners and the electricity consumed fall several times, then the complexity of mining will simply decrease and the process will stabilize again. So the value of bitcoin and its purchasing power lies only in the public's trust in it.
I think the value of bitcoin is to help the baleful people, so therefore their are so many people who used bitcoin because they believe that they are also achieve their goals through that.

Apollonia 〇 | HEALTHCARE ECOSYSTEM
http://apollonia.io
siruiiuris
Newbie
*
Offline Offline

Activity: 26
Merit: 0


View Profile
December 06, 2018, 03:08:27 PM
 #5

The price of bitcoin is formed exclusively by supply and demand for it. Bitcoins are not secured by any tangible assets, but the same situation is with any Fiat currencies, rubles or dollars. It is wrong to assume that bitcoin is provided with electricity spent on its mining or the cost of a bitcoin farm. The difficulty of solving the cryptographic problem during mining varies according to the network hashrate used to find the latest 2016 bitcoin blocks. If the number of miners and the electricity consumed fall several times, then the complexity of mining will simply decrease and the process will stabilize again. So the value of bitcoin and its purchasing power lies only in the public's trust in it.
Yeah, agree with you. But unfortunately the price of bitcoin is formed not only by supply and demand. It also manipulated by whales and big players. There is no pure and fair game in it. Definetely it will grow up in future.


Perception is one of the most important change effect too. The last hype was learning of what is bitcoin. But now next perceptional hype will implementing blockchain technology to real life.
Oniko
Member
**
Offline Offline

Activity: 266
Merit: 10

Augmented Reality World Discovered


View Profile WWW
December 06, 2018, 03:20:28 PM
 #6

The value of bitcoin in its technology and the faith of the crypto community.

Now the whales are selling their cryptocurrency and the market is falling. The ICOs is to blame for this, which deceived investors.

demenBTC
Sr. Member
****
Offline Offline

Activity: 616
Merit: 251



View Profile
December 06, 2018, 03:26:10 PM
 #7

The price of bitcoin is formed exclusively by supply and demand for it. Bitcoins are not secured by any tangible assets, but the same situation is with any Fiat currencies, rubles or dollars. It is wrong to assume that bitcoin is provided with electricity spent on its mining or the cost of a bitcoin farm. The difficulty of solving the cryptographic problem during mining varies according to the network hashrate used to find the latest 2016 bitcoin blocks. If the number of miners and the electricity consumed fall several times, then the complexity of mining will simply decrease and the process will stabilize again. So the value of bitcoin and its purchasing power lies only in the public's trust in it.
Yeah, agree with you. But unfortunately the price of bitcoin is formed not only by supply and demand. It also manipulated by whales and big players. There is no pure and fair game in it. Definetely it will grow up in future.

Obviously there is no pure game in the bitcoin trade, the price-determining whale that I believe so far, big traders always swallow small traders by creating erratic volatile market conditions

       ▄▄█████████▄▄
    ▄█████████████████
  ▄████████▀▀▀▀▀▀▀▀▀▀
 ▄███████▀   ▄▄   ▄▄▄▄▄▄▄▄
▄████████▄▄▄████  ▄▄▄▄▄▄▄▄
█████████▀▀▀▀▀▀▀  █████████
█████████   ▄▄▄▄   ▀███████
█████████   █████   ███████
 ▀▀▀▀▀▀▀▀   █████   ██████▀
 ▀▀▀▀▀▀▀▀   ███▀▀   █████▀
      ▄▄▄▄▄▄███▄▄▄▄█████▀
     █████████████████▀
       ▀▀█████████▀▀
Bitcoin Air 
 
.
█      ███
█      ███
  ██
  ██  ███
  ██  ███
  ██  ███
      ███
█  ██
  ███
█  ██
  ███
   ██
  ███
█  ██  ███
█  ██  ███
█  ██
     ██  █
███  ██  █
███  ██
███  ██  █
███  ██  █
███  ██  █
███      █
███  ██ 
███  ██ 
     ██ 
███
  ██ 
███
  ██ 
     ██
 
.
.
sikkan
Sr. Member
****
Offline Offline

Activity: 484
Merit: 250



View Profile
December 06, 2018, 05:27:59 PM
 #8

Yeah, like many say here the value of bitcoin is technology, supply and demand and great deal of manipulations. The situation might change somehow in the future but there is nothing we can do now.

     ▄▀▀▄         ▄▀▀▄
     ▀▄▄▀         ▀▄▄▀              ▄▄
       █           ▐▌           ▄▄▄█  █
       █      ▄▄████████▄▄    ▄█▀   ▀▀
       █▄▄▄▄████████████████▄█▀ 
         ▄██████▀▀▀▀▀▀▀███████▄ 
        ██████▀         ▐███████
 ▄▄    ▐█████▌   ▄████▄▄████████▌    ▄▄
█  █▄▄▄███████▄     ▀▀███████████▄▄▄█  █
 ▀▀    ██████████▄▄     ▀████████    ▀▀
       ▐███████▀▀████▀   ▐██████▌
        ██████▌         ▄███████
         ▀██████▄▄▄▄▄▄▄███████▀
          ▄█████████████████▀▀▀▀█
        ▄█▀   ▀▀████████▀▀      █
       █▀          ▐▌           █
       █            ▀▀▀█        █
      ▄▀▀▄            ▄▀▀▄     ▄▀▀▄
      ▀▄▄▀            ▀▄▄▀     ▀▄▄▀

SOVREN

Blockchain Innovation for Securities Markets      Current STO Sale Price
          Trade. Pay. Borrow. Play.   ─────────────────────        1 SVRN = $1.00









             ▄████▄▄   ▄
█▄          ██████████▀▄
███        ███████████▀
▐████▄     ██████████▌
▄▄██████▄▄▄▄█████████▌
▀████████████████████
  ▀█████████████████
  ▄▄███████████████
   ▀█████████████▀
    ▄▄█████████▀
▀▀██████████▀
    ▀▀▀▀▀









                          ▄▄▄
                    ▄▄▄██████
              ▄▄▄█████▀▀████▌
        ▄▄▄████████▀ ▄██████
  ▄▄▄██████████▀▀  ▄███████▌
▀███████████▀   ▄██████████
   ▀▀▀███▀    ▄███████████▌
        █▌  ██████████████
        ▐█ ██████████████▌
         █████▀ ▀████████
          ██▀      ▀████▌
                      ▀▀
timotron
Sr. Member
****
Offline Offline

Activity: 588
Merit: 272



View Profile WWW
December 06, 2018, 05:34:43 PM
 #9

The price of bitcoin is formed exclusively by supply and demand for it. Bitcoins are not secured by any tangible assets, but the same situation is with any Fiat currencies, rubles or dollars. It is wrong to assume that bitcoin is provided with electricity spent on its mining or the cost of a bitcoin farm. The difficulty of solving the cryptographic problem during mining varies according to the network hashrate used to find the latest 2016 bitcoin blocks. If the number of miners and the electricity consumed fall several times, then the complexity of mining will simply decrease and the process will stabilize again. So the value of bitcoin and its purchasing power lies only in the public's trust in it.

The price of nothing is formed exclusively by supply and demand for it. Gov is not secured by any tangible assets and we believe 100% in them.

take a balance. Put on one site all BTC arguments. Put in the other any other comparable thing, tell me how it looks?

 



  ██████████
 ████████▀▀██
 ████▀▀    ██
 █▀    ▄▀  ██
 █▄▄▄ █    ██
 ████  ▄█▄ ██
 ████████████
  ██████████


▄█████████████▄
██▀▀████▀  ▀▀██
██   ▀▀     ▀██
██▄         ███
███▄       ▄███
██▀▀      ▄████
███▄▄▄▄▄▄██████
▀█████████████▀
    |   
    eSPORTS   
ECOSYSTEM "Empowering Gamers!"
|       




▄█▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀█▄
█ ███████████████████████ █
█ █████     █ ▀██████████ █
█ █████     █   ▀████████ █
█ █████  ██ █     ▀██████ █

█ █████  ▀▀ █▄▄▄▄▄▄▄█████ █
█ █████  ▄▄▄▄▄▄▄▄▄  █████ █
█ █████  ▄▄▄▄▄▄▄▄▄  █████ █
█ █████  ▄▄▄▄▄▄▄▄▄  █████ █
█ █████  ▄▄▄▄▄▄▄▄▄  █████ █
█ █████             █████ █
█ ███████████████████████ █
▀█▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄█▀
steemit.com/@moonbounties]Steemit[/url][/b][/td][/tr][/table]
cindygirl
Full Member
***
Offline Offline

Activity: 266
Merit: 102



View Profile
December 06, 2018, 05:39:28 PM
 #10

So the value of bitcoin and its purchasing power lies only in the public's trust in it.

As is true for everything. The price of absolutely all things is decided by nothing more than supply and demand and a large portion of that is public perception. If everyone suddenly believed that banana's were going to cure all illnesses and provide ever lasting life, the price would increase astronomically, irrespective of if it is true or not. People believe it.

██████████████████████ ▀▄ Platio ▄▀ ██████████████████████
[TELEGRAM]│Smart Banking Ecosystem for crypto, fiat and│[FACEBOOK]
[TWITTER] │stocks, based on EOS blockchain technology │ [MEDIUM]
Upgrade00
Member
**
Offline Offline

Activity: 84
Merit: 27

Decentralized Digital Billboards


View Profile
December 06, 2018, 05:44:38 PM
 #11

The price of bitcoin is formed exclusively by supply and demand for it. Bitcoins are not secured by any tangible assets, but the same situation is with any Fiat currencies, rubles or dollars.

Bitcoins price is influenced largely by demand and supply, and demand and supply is influenced by all other factors associated with bitcoins. So basically, when the network is running smoothly people build faith in the technology and are are willing to buy, but when there is a chink in the chain, panic reigns.

And also this is nothing like fiat currencies. There is a delegated sector which supports and regulates the worth of national currencies

lovesybitz
Sr. Member
****
Offline Offline

Activity: 686
Merit: 289



View Profile
December 06, 2018, 06:28:55 PM
 #12

The price of bitcoin is formed exclusively by supply and demand for it. Bitcoins are not secured by any tangible assets, but the same situation is with any Fiat currencies, rubles or dollars. It is wrong to assume that bitcoin is provided with electricity spent on its mining or the cost of a bitcoin farm. The difficulty of solving the cryptographic problem during mining varies according to the network hashrate used to find the latest 2016 bitcoin blocks. If the number of miners and the electricity consumed fall several times, then the complexity of mining will simply decrease and the process will stabilize again. So the value of bitcoin and its purchasing power lies only in the public's trust in it.

Almost all top altcoins or bitcoin that has a high volume in the market are all being controlled by the whale investors, just like what is happened into XRP a couple of weeks past, same goes with Bitcoin as well. There are lot manipulators in the market, and this things can't be gone anyway. I think it is already a part of their strategy anyway.




         ▄█████████████████████████▄
       ▄████▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀█████
     ▄████▀                       ▀███
    ████▀                           ████
   ████                              ████
  ████                                ████
 ████       ███████████████████        ████
████         ███████████████████        ███
████                       ▀████        ███
████                        ████        ███
████▄                      ▄████        ███
 ████       ████████████████████       ███
  ████      ███████████████████       ███
   ████     █████                    ███
    ████▄   █████                  ███
     ▀████▄ █████       ▄██▀▀█▄▄▄█▀▀
       ▀█████████     ██     ▄▄▄
          ▀██████    ▀▀▀██████








  ▄█████████████          ███████              ▄█████████████          █████████████
 ████████████████        ████ ████            ████████████████       ████▀▀▀▀▀▀▀▀▀████
              ████      ████   ████                        ████    ████            ████
               ████    ████     ████                        ████   ████            ████
              ████    ████       ████                      ████    ████            ████
█████████████████    ████         ████       █████████████████     ████       ▄▄   ████
████████████████    ████           ████      ████████████████      ████       ███▄  ███
████               ████   ██████████████     ████         ████      ████▄▄▄▄▄▄ ████▄ 
████              ████   ████████████████    ████          ████       ████████████████▄▄
//A GREEN, SMART AND CONNECTED CITY PLATFORM
● ▬▬▬ ● ▬▬▬▬ ● ▬▬▬▬ ●  MEDIUM | REDDIT | FACEBOOK | TELEGRAM | TWITTER | YOUTUBE | ANNOUNCEMENT  

- W P -

     ██████████████████▄
     ██           ██  ██▄ 
     ██           ██    ██▄
     ██           ██     ██▄
     ██           ██████████
     ██                   ██          
     ██                   ██
     ██                   ██
     ██                   ██
     ██                   ██
     ██                   ██
     ██                   ██
     ██                   ██
     ███████████████████████
RodeoX
Legendary
*
Offline Offline

Activity: 2828
Merit: 1073


The revolution will be monetized!


View Profile
December 06, 2018, 06:43:30 PM
 #13

...So the value of bitcoin and its purchasing power lies only in the public's trust in it.
I agree. Early on I learned a lot about how little I knew about money. Money really only needs two things. It must be hard or impossible to counterfeit, and it must be seen as valuable. Gold is just a shinny rock and dollars are just fancy paper. It is our common belief that allows us to trade these valueless things for items of real value.   

The gospel according to Satoshi - http://bitcoin.org/bitcoin.pdf

Free bitcoin in AFRICA - http://fonstavka.com/index.php?topic=2710325.msg27720734
pixie85
Sr. Member
****
Offline Offline

Activity: 742
Merit: 265


View Profile
December 06, 2018, 07:20:02 PM
 #14

Almost all top altcoins or bitcoin that has a high volume in the market are all being controlled by the whale investors, just like what is happened into XRP a couple of weeks past, same goes with Bitcoin as well. There are lot manipulators in the market, and this things can't be gone anyway. I think it is already a part of their strategy anyway.
And you believe this is different with stocks? They are controlled by a small group of board member who together are the majority shareholders. This means that even if you were able to gather up all the other public shareholders you wouldn't be able to dictate anything or change company's policies. With Bitcoin you have the advantage because even if whales sell their stocks the technology will still be there. It will lose most of its value but it won't disappear. If the board decides to shut the company down it disappears.

kryptqnick
Legendary
*
Offline Offline

Activity: 1120
Merit: 1030


One of the world's leading Bitcoin-powered casinos


View Profile
December 06, 2018, 07:22:18 PM
 #15

The price of bitcoin is formed exclusively by supply and demand for it. Bitcoins are not secured by any tangible assets, but the same situation is with any Fiat currencies, rubles or dollars. It is wrong to assume that bitcoin is provided with electricity spent on its mining or the cost of a bitcoin farm. The difficulty of solving the cryptographic problem during mining varies according to the network hashrate used to find the latest 2016 bitcoin blocks. If the number of miners and the electricity consumed fall several times, then the complexity of mining will simply decrease and the process will stabilize again. So the value of bitcoin and its purchasing power lies only in the public's trust in it.
Not the same. The price of bitcoin is indeed determined by what people are willing to pay for it when they are trading (not the best kind of demand and supply, but still). Fiat price is determined by the regulatory authority that sets the price and makes sure that it's under control regardless to what's going on. As for bitcoin purchasing power - unfortunately, I don't think it's appropriate to talk about it for now. There aren't many places where one can pay with btc. And are there are places that determine the prices not by converting the fiat price into bitcoin one's? It's too dependent and too unstable for now.

hadveach
Full Member
***
Offline Offline

Activity: 434
Merit: 102


View Profile
December 06, 2018, 10:49:53 PM
 #16

in my opinion, the value of BTC depends on public demand responded by mining. then a transaction will be processed in each block and the hash mined.

the impact is variable transaction costs. sometimes expensive and cheap.
Al-e_x
Member
**
Offline Offline

Activity: 378
Merit: 11


View Profile WWW
December 06, 2018, 11:00:14 PM
 #17

yes, I agree with you, the value of BTC is formed by a public trust, USD is also determined by market demand, but the volatility of BTC and USD is not the same.

BTC volatility that created by the traders can make people get rich quickly when bullish cannot be controlled, but someone will become poor if the decline is difficult to control.

Pages: [1]
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!