Well an apple has value because it's food, but if today people are willing to pay 1 banana for it and tomorrow they're willing to pay 2 bananas for it, the apple still has the same value it did yesterday because the calories in it haven't changed, but you can actually obtain twice the calories you could've obtained yesterday by taking the banana (2 bananas today), so its value today has doubled.
Bitcoin is a 0 calorie apple, today you can exchange it for 1 banana, people who hold it think tomorrow they'll be able to get 2 bananas for it.
At the end of the day we are biological entities, value is what survival and reproduction benefits we think something can provide, and if enough people are paying that price then its value is that price in dollars.
Bitcoin is a 0 calorie apple, today you can exchange it for 1 banana, people who hold it think tomorrow they'll be able to get 2 bananas for it.
At the end of the day we are biological entities, value is what survival and reproduction benefits we think something can provide, and if enough people are paying that price then its value is that price in dollars.