Bitcoin is the world’s first decentralized Cryptocurrency. Therefore, it mainly derives its value from being the first digital currency. Nobody has control over it, not any individual, organization, or government has control over Bitcoin. Basically, anyone can buy Bitcoin, and anyone can hold it as well. Without anyone telling you what you can or cannot do with it. This is the most important aspect of Bitcoin and it’s called being permissionless. But what other features value to Bitcoin?
What adds value to your Bitcoin
Fixed supply and inflation: the biggest cryptocurrency of the world; Bitcoin possesses a fixed supply of coins close to 21 million. It was also confirmed last year, in April, that 80% of this total supply has already been mined. The number of mined coins are going to decrease with time, but there is still a long time for them to enter circulation. The fixed supply, as in the case of Bitcoin, suggests the creation of digital scarcity. This implies that lower supply would meat high demand. Thus resulting in increased prices over time.
Censorship resistance: all the transactions made on the Bitcoin network are unstoppable and permissionless. This implies that if you have an internet connection and agree to pay the network fee then there is nothing that can stop you from sending Bitcoin to whomsoever you want. This censorship resistance adds value to your Bitcoin. Meaning, that the cost of trying to censor or steal it is so high that it is borderline impossible. So in the case of your own Bitcoin, if a person or organization tries to get a hold of your Bitcoin, either stealing your private keys or cracking the underlying code, they will need to bring a huge amount of computing to the table.
Decentralized: for anybody who has studied the nature of cryptocurrencies like Bitcoin must know that decentralization is what makes Bitcoin valuable. With no external control, bitcoin is able to operate in a boundary-less manner. Absolutely no central authority exists that has the power to seize or block anybody’s Bitcoins, its value primarily comes because of this reason.
10 Years of track-record of stability: Bitcoin is soon going to celebrate its 10th Anniversary. Even after facing various challenges and shortfalls, this cryptocurrency is still going strong. Although the price has been volatile during these years, being sound money helps in retaining the purchasing power with time.
First Crypto: since Bitcoin was the first Cryptocurrency people have sentiments attached to it and also because of the huge number of merchants accepting as a means of payment adds to is value. People believe that it is here to stay, unlike many cryptocurrencies, which weren’t so lucky to withstand the challenges and difficulties that they faced. Just like anything that gets launched for the first time, it slowly gains value; same goes with Bitcoin.
Trades against all other cryptos: Bitcoin is a Cryptocurrency that can be traded against any other crypto, meaning that this premier cryptocurrency is very easy to buy and sell which means high liquidity. All that you need to do is log in your bitcoin account or exchange and buy or sell Bitcoins. Bitcoin also acts as a reserve currency in the crypto-space. When altcoins experience losses people usually buy Bitcoin as a safety measure.
Slow, steady, thoughtful development: Bitcoin has definitely seen through a lot of ups and downs and huge volatility. But the technical progress has been slow and steady. The Bitcoin developers make every effort to develop the codebase in a conservative and safe way. New versions come out slowly but with the full support of the community.
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