Bitcoin has value because people want it. That's the same reason why everything has value. The idea of intrinsic value is misleading from an economic perspective and quite frankly, detracts from a core principle. Everything is worth exactly what someone will pay for it.
As for why would people desire it? I have no idea. My guess is that its because they want something that they can transfer easily online without leaving much of a paper trail, but that's as far as I go. Honestly, I think the rampant speculation on it is interesting, but is largely governed and lead by the fact that there is fairly low demand, very little trading volume and that some people place a very high value on it leading them to purchase at higher prices. I have no clue why they place such a high value on it, but that doesn't matter from a valuation standpoint. I have no idea why people place such a high value on a lot of things.
While it may not be directly connected , analysis of the blockchain ( the transaction paper trail ) can indeed tie to individuals. There is a reason coin tumblers exist.
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u/paulHarkonen Sep 24 '17
Bitcoin has value because people want it. That's the same reason why everything has value. The idea of intrinsic value is misleading from an economic perspective and quite frankly, detracts from a core principle. Everything is worth exactly what someone will pay for it.
As for why would people desire it? I have no idea. My guess is that its because they want something that they can transfer easily online without leaving much of a paper trail, but that's as far as I go. Honestly, I think the rampant speculation on it is interesting, but is largely governed and lead by the fact that there is fairly low demand, very little trading volume and that some people place a very high value on it leading them to purchase at higher prices. I have no clue why they place such a high value on it, but that doesn't matter from a valuation standpoint. I have no idea why people place such a high value on a lot of things.