Pardon my ignorance. I want to know who controls the value of Bitcoin. I am comparing Bitcoin with the US dollar which is backed by the government and has an equivalent of gold reserves. Does the Bitcoin have the same guarantee that its value is backed by a bank or company? What if I buy a Bitcoin now and tomorrow it becomes worthless? Is it possible to happen?
Question on Bitcoin
- Thread starter Corzhens
- Start date
Bitcoin's value is determined by demand and supply just like stocks. There is nothing backing it up and theoretically, it can become worthless tomorrow or sometime in the future. There is a lot of speculation in the cryptocurrency market at the moment and technically, it is not a very good "currency" because of the high volatility. There is a team behind the coin that works on the development but they have no influence on the price.
It's possible to buy a bitcoin for 4 grand today and have it be worth 3 grand by morning. The market is really bad right now. And that's what controls the value of BTC, the market. It could trade for more or less which means it will be worth more or less.
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