Bitcoin’s prices depends on faith as the price of other assets
Faith is the main thing that helps maintain Bitcoin prices in the same way that it maintains the value of other assets.
After involving many large bitcoin organizations like Tesla, which has invested $ 1.5 billion in bitcoins, Mastercard, Visa, and PayPal began facilitating digital currency transactions like bitcoin and BNY Mellon expanded their services to include bitcoin. There are many mobile applications such as bitcoinera that have made the process much easier.
All of these factors drive up the price of Bitcoin and it has reached all-time highs, but it has again surpassed $ 61,000 and is back at $ 57,000. This high rate of fluctuation puts bitcoin back in the spotlight.
its eventual rise and fall reignited discussions about the reasons. These statements and arguments are obtained from facts, data, or other realities. Different commentators have explained the relationship between bitcoin and faith differently.
Many people named Bitcoin as a faith-based asset. But you should keep in mind that that faith in bitcoin that sustains the price of bitcoin is the same as the faith in other assets that keep their price sustained at a fundamental level.
In a broad explanation, our life is driven and shaped by faith. Faith motivates people at such levels that they willingly sacrifice their well-being and their lives. Beyond any religious paradigm, faith urges someone to sacrifice for a company, an idea, or a leader.
If you have faith in freedom, it will motivate you to sacrifice everything, including your own life, to support the idea and the revolution. There are many other examples in our daily life, such as when we visit an ATM with confidence, we withdraw money easily. The same faith that we have in different assets pushes us to invest them blindly, for example, if someone asks us to invest in gold, we will invest it because we know that gold will not lose its value.
Like gold, bitcoin managed to win the faith of the people, because it has little intrinsic value like gold. It also has the ability to store value. But it is a bit different from other assets and today Bitcoin is the first choice of any investor.
In the words of its creator, bitcoin is a digital transaction system that did not require faith or trust. But bitcoin doesn’t completely remove the trust factor. So we can say that bitcoin is the best peer-to-peer electronic monetary system that we still believe in the blockchain system that has opened new doors for new blockchain projects.
Reasons to believe in bitcoin
The new generation and young people have shown great interest and faith in decentralized digital currency. Because it has lived through the financial crisis of 2008. Bitcoin has all the properties of safe-haven assets that increase people’s faith in it.
Bitcoin is a decentralized currency, so no country, organization, government, or anyone affects it. Unlike other fiat currencies, any factor such as natural disasters, wars, or epidemics did not affect the value of bitcoin.
It is not necessary to follow the rules of any country or monetary organization to have your digital money. You can easily receive or send money without interfering with any third party. You are in full control of your wealth.
Because bitcoin and other cryptocurrencies keep your identity hidden. Nobody knows about your wealth except that you tell someone. This makes it ideal in some conditions and is also the main reason for opposition from some countries and governments.
Being a peer-to-peer technology, bitcoin does not need any third party or a company to carry out transactions. The two parties, the receiver and the sender must only have bitcoin wallets to carry out transactions. This makes the transaction fee very low and sometimes equal to zero.
Bitcoin is now accepted by all major organizations, including PayPal, Mastercard, and Visa, which also makes cryptocurrency transactions easy. So you don’t have to worry about converting bitcoins into your local currencies or buying bitcoins with your local currency.
All of these things not only increase our trust in bitcoin but also increase people’s faith in cryptocurrencies, which is a basic thing that supports the price and value of any asset.
Story by Affan Hashmi. Total convert to crypto and blockchain. As a content writer, he researches and writes about various projects in the cryptoverse.