The question: how much bitcoin is worth, is not at all the simplest. It depends on whether someone asks about the current value in dollars or about the commercial value.
“Bitcoin is the currency of resistance… If Satoshi had released Bitcoin 10 yrs. earlier, 9/11 would never have happened” said Max Keiser – American broadcaster and film maker.
Bitcoin is worth a lot or nothing
Some economics teaches society that values are subjective and items have economic value because people desire them for one reason or another. CryptoCurrencies, or mediums of exchange, serve several different and crucial functions in an economy.They make trade easier; money currencies trade for nearly any good or service. Describing Bitcoin as a currency seems like a natural place to begin but comparing Bitcoin to a currency is like comparing lightening to a lightening bug.
Some currencies, have value because they are useful as a commodity. Government fiat currencies, like the U.S. dollar, have a confirmed value because governments grant them legal tender status and only accept taxes through them. So an important guideline is whether people on top give value to currency.
Bitcoin is worth a lot of money
If the value indicator is the exchange price, then really, Bitcoin is worth a lot. Some say this is the nascent start of a trillion dollar industry and the biggest thing to happen in technology since the internet was invented. Other says that bitcoin will replace gold and U.S dollars and every monetary instrument in between. And while Bitcoin is nearly nine years old, it represents a completely new type of asset.
Many people still have no idea what a BTC is, what it does or how to purchase one. And the same goes for Wall Street, and even though there have been over 100 cryptocurrency-focused hedge funds opened in the last year many institutional investors still haven’t take a stake in Bitcoin. But what is important that Bitcoin is certainly used for payments, and this is an important part of its value. It’s not widely used for payments and, while it may be increasingly important over time.
The existence of the possibility of paying using BTC makes its value real, but buying BTC can be easier than selling it when its value plunges. That’s because most institutions accept dollars, not BTC, to conduct business.
Bitcoin is worth nothing
Many people think that all cryptocurrencies are worthless. Bitcoin can be used to buy a few things only. But a currency has three main functions: store of value; means of exchange; and unit of account. If you look at Bitcoin in this way, you could argue that it’s created out of thin air. With no authority backing it, new bitcoins are introduced free of debt, and if there’s no debtor backing a currency, then the currency has no value, it’s worth nothing.
BTC creator Nakamoto did call it “electronic cash” in his Whitepaper, but there’s no law saying Bitcoin should be this or that. It’s a decentralized system that changes over time, and it might end up being something else entirely. Also you can calculate the return on investment, which tells you how much money your stock is earning you because with Bitcoin, you’ve got very few metrics to start from. And however you slice it, you’ll always have the huge problem that the value of Bitcoin as a system might be more or less decoupled from the value of one bitcoin, the coin. What you should know is BTC received many copies as a result of so-called forks.
It’s good to have BTC
Even if you assume that BTC is not worth much in real life, it’s good to have it. Because in the current situation, no one will deny that it can be sold with a large profit. For a single person, having BTC is good, because it can be exchanged for dollars, for real money. So, if something can be converted into dollars, can it be bad? Anyone interested in buying bitcoins needs to deposit funds in U.S. dollars, euros, or another currency supported by the exchange. Bitcoins bought can be stored in a digital wallet, device, or paper wallet, depending on the buyer’s preference. Is not it simple and fair? As exchanges face the risk of hacking and theft, it is wise not to trust an exchange with all your coins. You should split and keep part of them in other devices or cold storage.
“We are enthusiastic about blockchain technology, and the current attention for Bitcoin could boost blockchain and digital currencies’ development. But as we have argued above, we doubt whether Bitcoin itself has what it takes to become a serious mainstream payment systems contender.” – (CME Group).
Future of BTC
On the ninth anniversary of Satoshi Nakamoto’s white paper, one of the world’s most respected derivatives providers, announced it would launch a regulated bitcoin futures market.
So for now, two exchanges, the CME and CBOE are already offering Bitcoin trading to investors. What they’re really offering is futures prices, based on the Bitcoin price averaged from a few big exchanges — but the result is that investors can trade in BTC on a secured, non-hackable, reputable.
Everyone will confirm that 2017 has been a remarkable year. Almost every single metric of adoption has shown signs of exponential growth: exchange users, social media, wallet downloads, chatter, Google search trends and transactions per day. And with this interest, the futures markets are effectively embedding BTC into the traditional regulated markets, adding legitimacy for those that doubted its longevity or who still believe it is a fraud.
Despite what you might have heard, the fact is that Bitcoin and other cryptocurrencies are very expensive and experimental as well. Many traders are on the side line right now waiting for a significant pullback to get in on Bitcoin. So the key is to buy low and not develop a sentimental or emotional attachment thus missing the proper selling point.
On the website: Bitcoin Fundation you will find many useful official informations.