Lesson 02 · 8 minute read
Why people believe Bitcoin has value
Bitcoin has no guaranteed value. People value it because of the properties its rules create—not because a government promises to redeem it.
The case people make for it
It is predictably scarce
The issuance schedule is public and difficult to change. Supporters compare this verifiable scarcity to precious metals.
It can be held directly
With the right setup, a person can hold the keys without relying on a bank. That independence is useful, but it also transfers responsibility to the owner.
It can move across borders
The network operates continuously and does not require two banks to coordinate a transfer.
Scarcity alone does not create lasting value. Bitcoin depends on continued demand, secure software, functioning markets, and people choosing to use it. Its price has repeatedly fallen by large percentages.
A better beginner question
Do not ask, “Will the price go up?” Nobody knows. Ask, “Do I understand the risks, the custody choices, and why I would own this at all?”
Before considering any purchase, learn the mistakes that cost beginners the most.
Continue to safety