Why Does Bitcoin Have Value?

Bitcoin’s value comes from a combination of its scarcity, its usefulness as a global money, and the trust people place in its decentralized design. Unlike fiat currencies, which can be printed in unlimited amounts, Bitcoin has a fixed supply of 21 million. This scarcity gives it predictable monetary properties that appeal to savers and investors, much like gold.

Another source of value is Bitcoin’s independence from governments and banks. It allows anyone, anywhere in the world, to store and send value without needing permission. This makes Bitcoin especially valuable in places facing high inflation, capital controls, or unstable financial systems. Its ability to move across borders instantly—with no intermediaries—gives it utility that traditional money can't match.

Finally, Bitcoin’s open network and global adoption reinforce its value. Millions of people, thousands of businesses, and countless developers rely on its system every day. The belief in its long-term potential and the strength of its network effects contribute to its price, similar to how other emerging technologies gain value as they are adopted.