How Does Bitcoin Have Value?
A utility of Bitcoin as a store of value is strongly attributed to its capped supply at 21 million BTC. This along with its inflexible liquid supply drives it's demand and thus its value.
Once investors have decided to invest in digital assets, the next question becomes, “Which one?” Of course, bitcoin is the most recognized, first-ever digital asset, but there are hundreds and even thousands of other digital assets in the ecosystem. In this Fidelity Investments paper from January 2022, Chris Kuiper, Director of Research, and Jack Neueuter, Research Analyst, explore some very interesting aspects of Bitcoin and its investment thesis.
A utility of Bitcoin as a store of value is strongly attributed to its capped supply at 21 million BTC. This along with its inflexible liquid supply drives it's demand and thus its value.
Bitcoin halving is the term used to identify the block reward subsidy schedule. According to the Bitcoin blockchain protocol, the Bitcoin block reward is cut in half every 210,000 blocks.
Bitcoin’s baked-in scarcity makes it valuable. Bitcoin’s algorithmically determined rate of increase makes it scarce when demand for the bitcoin cryptocurrency is rising, ta less so when it is falling.