A bitcoin is valuable because it can be exchanged for and used in place of fiat money, but it also has a high exchange rate because investors who are hoping to make money from it are interested in it.
Because it can serve as both a value store and a medium of exchange, bitcoin has value. Additionally, it exhibits six essential qualities that permit its use in an economy. Over the years, a currency’s definition of value has shifted from its physical characteristics to how quickly it is used in an economy. Although Bitcoin exhibits some characteristics of a currency, its main source of value comes from its limited supply and rising demand.
The Value of Traditional Currencies
Numerous objects have been used as mediums of exchange throughout history; well-known examples include shells, beads, animal skins, and gold. These items are taken into account when talking about “money.” All that is required of money is that it serve as a store of value, be recognizable as a unit of account, and be accepted as a medium of exchange; it need not be the printed money that we are all familiar with.
Then something is money if it satisfies those requirements. However, for it to be effective and durable, it must have:
It must not be a resource that is easily accessible.
- Divisibility: Money should be issued in a variety of denominations
- Acceptability: It must be accepted by the intended audience.
It must be portable so that it can be carried around and traded.
- Durability: Money ought to have a long lifespan. All denominations ought to be uniform and difficult to duplicate.
Other uses for BTC
You can even use this currency to wager on casino and sports games. Some of the best bitcoin sportsbooks accept and payout using BTC and other cryptocurrencies. Some will convert it to fiat while you play while others will allow you to play in smaller units of BTC known as “satoshis”.