What is the core value of Bitcoin? Why does something virtual increase in value?

💡 What is the core value of Bitcoin?

1️⃣ Decentralization: The Bitcoin network has no central controlling authority; all transactions are jointly verified by miners and nodes around the world, ensuring transparency and security.

2️⃣ Scarcity: The total supply of Bitcoin is fixed at 21 million coins, which cannot be arbitrarily increased and is unaffected by the monetary policies of central banks.

3️⃣ Immutability: Blockchain technology ensures that transaction records are public and transparent, and once confirmed, they cannot be changed or deleted.

4️⃣ Anti-censorship: Due to its decentralized structure, it is difficult for any individual or institution to unilaterally freeze or block Bitcoin transactions.

5️⃣ Global circulation: It is not restricted by countries and regions; anyone with an internet connection can use it.

🚀 What are the real reasons for the rise of Bitcoin?

1️⃣ Supply and demand relationship:

With a fixed total supply, combined with the halving mechanism that reduces rewards, supply decreases while demand continues to grow, naturally driving up the price.

2️⃣ Institutional involvement:

An increasing number of institutional investors, such as Grayscale and MicroStrategy, are incorporating Bitcoin as part of their asset allocation, boosting market confidence.

3️⃣ Inflation hedge:

The large-scale money printing by global central banks has led to the devaluation of fiat currencies. The limited supply of Bitcoin makes it a “digital gold” in the fight against inflation.

4️⃣ Technological advancements:

Upgrades such as the Lightning Network, SegWit, and Taproot have made the Bitcoin network faster, cheaper, and more secure, driving the development of the ecosystem.

5️⃣ Regulatory recognition:

Regulations in countries like the United States are gradually becoming clearer, and El Salvador has even adopted Bitcoin as legal tender, enhancing market trust.

6️⃣ Payment and application scenarios:

An increasing number of merchants are accepting Bitcoin payments, and payment giants like PayPal and Visa are also starting to support Bitcoin transactions, expanding practical application scenarios.