Bitcoins are a relatively new digital currency that exists only
within the world wide web. The cryptocurrency does not have any value on
its own, but it is created in the process of social interaction. Only
because of communication, the value – and price – is formed.
The supply of the coins is limited, as the system’s creator Satoshi Nakamoto has foreseen. There will be no more than 21 million Bitcoins. That’s it. This is what makes Bitcoin extremely valued. On the one hand, it is half-asset, half payment unit. On the other hand, it is an innovation which turns the whole financial system, along with its unresolved security issues, centralised control, or constant inflation, upside down. It is no wonder that the demand remains quite high among those who know what Bitcoin actually is.
Bitcoin supply and demand
Everything in the world of Bitcoin is about supply and demand – those two basic economic categories. Humans tend to value those things the most which have a limited amount or a limited potential amount.The supply of the coins is limited, as the system’s creator Satoshi Nakamoto has foreseen. There will be no more than 21 million Bitcoins. That’s it. This is what makes Bitcoin extremely valued. On the one hand, it is half-asset, half payment unit. On the other hand, it is an innovation which turns the whole financial system, along with its unresolved security issues, centralised control, or constant inflation, upside down. It is no wonder that the demand remains quite high among those who know what Bitcoin actually is.
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