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.
Lyn Alden commented, "Blockchain-based cryptocurrencies have been around for over a decade, since the release of Bitcoin in early 2009. While the asset class has grown considerably, it remains relatively small and highly volatile, so deciding whether to insert a small bit of Bitcoin or other cryptocurrency exposure into a portfolio allocation can be a controversial and confusing decision."
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.