To be honest, the first time I really paid any attention to Bitcoin was when I heard it reached a value of over $60,000 USD. I find it utterly amazing the the value of a cryptocurrency or digital currency could hold that level of value. As I sit here and write this, the value of a single Bitcoin was $19,154 USD. What an amazing world we live in!
Here is a link to at least one website outlining Bitcoin better than I can: https://www.coindesk.com/learn/what-is-bitcoin/
Now, here is what is confusing to someone like me, who admittedly is not a financial wizard regarding fiat currency or cryptocurrency. My field of expertise is psychology. How is Bitcoin worth anything? I mean, it is not backed by any government or particular group or agency, and it is a mathematical data point (Bear with me, I know it is too simple, but it is accurate). There is no one holding vast amounts of gold to back it up, no tangible value, it does not create anything, and it is in this day and age environmentally destructive (at least it how one is created).
I am beginning to better understand in very small increments cryptocurrency, and I love the idea of decentralized currency. This may seem to go against what I mentioned in the above paragraph, but in the centralized system, there has been historic value with a backing of some sort. However, as much as I may life the idea, I do not really understand Bitcoin.
I have outlined some of my thoughts regarding other cryptocurrency such as Jasmy, Cardano, Algorand, and Shiba Inu. In those cases, I have been able to find tangible value. I am having trouble finding tangible value in Bitcoin. Maybe the value of Bitcoin is it has a finite number, maybe it is in the form of a digital currency (although Google and COINBASE recently partnered to use cryptocurrency as a payment method https://www.investopedia.com/google-partners-coinbase-6749264#:~:text=Google%20has%20partnered%20with%20cryptocurrency,to%20foster%20Web3's%20development%20ecosystem
My theory is that to have long term value, there has to be a solid foundation to build upon. I am not sure if there is one with Bitcoin. However, I am not fully out on the idea of Bitcoin and am not saying it does not have value, I just don't understand it.
Again, I am not a great financial mind, and nothing in my post should be construed as financial advice or any other type of advice. I am simply outlining my thoughts as I have begun to delve into the world of cryptocurrency. It is a fascinating journey so far.
