The value of bitcoin is not reflected by its price

Although the price of has been a hot topic attracting the attention of the masses, the real of is not reflected by its price.

Since the advent of over a decade ago, the market and space has progressed substantially. While the -backed cryptocurrencies are still not accepted and utilized by the majority, the real of is often misinterpreted on several occasions. At the moment, cryptocurrencies are mainly famous for speculation. The volatile nature of cryptocurrencies, considered a high-risk investment, has yielded enormous returns for the holders and investors. Therefore, nowadays, the real value of bitcoin is associated in terms of its price rather than its true decentralization use cases.

Although has offered substantial returns to investors from time to time, the real use case of bitcoin is its truly nature. Created to replace fiat and become a medium of exchange, is better than fiat in several ways. Fiat currencies are often manipulated due to political and social reasons. However, bitcoin can’t be controlled or manipulated like fiat. The price of bitcoin is dependent on the fundamentals of supply and demand only. This means that the price of bitcoin increases when the demand for bitcoin surpasses its supply. Similarly, the price of bitcoin decreases if the supply of bitcoin increases its demand.

created by Satoshi Nakamoto is not owned by any country, or organization. Basically, it is a is governed by a computerized program and that explains why it can’t be manipulated by anyone. More importantly, unlike fiat currencies that have unlimited supplies, has a finite supply of 21 million. While fiat currencies are created out of thin air as much as needed, bitcoin has a fixed supply and creation criteria. Quite similar to gold, bitcoin is mined programmatically by the miners with the help of high-computing power machines. Whenever a miner successfully validates a block on the bitcoin blockchain, a fixed number of bitcoin is created. Due to this, bitcoin creation is fixed and constant that ultimately contributes to the -free nature of the world’s largest by the market cap. In simple words, as can’t be created as needed, its doesn’t depreciate like fiat.

is created on a public where one can validate the transaction records comfortably. Due to this, eliminates the need for a third party.”

Additionally, the trust bestowed by to its users is quite game-changing and remarkable in several aspects. Bitcoin is created on a public where one can validate the transaction records comfortably. Due to this, eliminates the need for a third party. Usually, when two parties are undergoing a contract and have to settle the payments, security and reliability kick in and a need for a supervisory body such as banks becomes necessary. However, enables transactions while maintaining the trust level between the two parties. Therefore, by eliminating the need for a third party, cuts the time and monetary funds utilized by the intermediary parties to supervise the transaction.

Imagine when all 21 million bitcoin are launched in circulation and have to serve a population of billions. It’s simple math that 21 million can’t be distributed over the entire population of billions and this could prevent bitcoin’s mass adoption. Therefore, to become a medium of like fiat, an asset has to be divisible. This explains why is divisible up to 8 decimal numbers. The smallest unit of bitcoin called a ‘Satoshi’ is equivalent to 0.00000001 bitcoin. So, this means that bitcoin with substantial divisibility has the capacity to cater to the needs of the global population and become a part of the global economy.

’s inherent attributes make it a valuable asset and store of than fiat currencies. For instance, is a digital asset without any physical form so it can’t be burned, stolen or torn like a physical fiat note. Moreover, the bitcoin can’t be counterfeited as well. As all the transactions are recorded on a network, to counterfeit bitcoin, a 51% attack would be needed. In the world of cryptocurrencies and blockchain, 51% of attacks only occur when more than 51% of the underlying blockchain network is controlled by a single entity who in turn can modify the transaction information on the network and counterfeit bitcoin. It is almost impossible for a single entity to now execute the 51% percent attack on as managing computing power equivalent to millions of miners is not realistic or feasible now.

All the aforementioned use cases of are considered revolutionary and innovative in the space. Although the spotlight is most of the time dedicated to the growth of in terms of its price, there are several characteristics associated with bitcoin that accounts for the real it. As the speed of mass adoption progresses, the real value of will be understood by the majority and it’s expected that bitcoin’s price will not account for its value as much as it is in today’s world.

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