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RE: The Reason that BITCOIN Has Value is Because... + get 100SP delegated to you by commenting~

in #bitcoin6 years ago

Bitcoin has value because it provides a gateway from crypto to fiat and vice versa. There are only a few cryptos have that status. Bitcoin is the oldest and the most well known one. In US, for ie, to invest in cryptos, you often have to convert fiat to Bitcoin (or ether) first, then use Bitcoin (or ether) to invest in other alter coins. That creates demand, and that demand put a floor under Bitcoin's price.

Earlier this year, when Chinese government banned crypto exchanges, the Bitcoin price dropped 50%+. That is because the channel from fiat to Bitcoin was shut down in China and other places in the world were not able to pick up the demand. Later in February, US had congressional hearing on cryptos, and the outcome was positive because the US government will not put a complete ban on cryptos. So demand picked up in US and the Bitcoin price recovered.