What Really Backs Bitcoin’s Value? Core Drivers Explained
bitcoin isn’t backed by cash flows or governments, yet it holds value. This article explains the real drivers: scarcity, security, network effects, and market demand that sustain its price.
Capitalizations Index – B ∞/21M
bitcoin isn’t backed by cash flows or governments, yet it holds value. This article explains the real drivers: scarcity, security, network effects, and market demand that sustain its price.
bitcoin is dubbed ‘digital gold’ because its fixed 21 million supply, predictable issuance and decentralized validation create scarcity and store-of-value properties similar to gold, attracting long-term investors.
bitcoin’s market cap measures the cryptocurrency’s total value by multiplying its current price by circulating supply. It offers a snapshot of market size but not liquidity or intrinsic value.
Explains how bitcoin’s 21 million supply cap creates deflationary pressure, limiting issuance, reducing inflationary dilution, and shaping long-term value dynamics in contrast to fiat currencies.
bitcoin’s value stems from capped supply (21 million), decentralized ledger that removes central control, and growing demand as a digital store of value, medium of exchange and network-driven asset.
bitcoin is a decentralized digital currency operating on a distributed ledger (blockchain). It enables peer-to-peer transactions without intermediaries, secured by cryptography and consensus mechanisms.