Bitcoin questions

[JayMC]

Hey guys, I’m wondering how Bitcoin works. How does this cryptocurrency get to be worth so much with absolutely no one backing it?

Btc worth at time of post: 18,979 usd


How does it work?
Who sets the price and how does that work?
Why is it so popular?

 

[JayMC]

Thank you for the help!

 

[mothh]

Nothing is backing the United States Dollar either.

It used to be backed by gold, but that got removed a while ago:
http://buygoldandsilversafely.com/gold/what-really-backs-the-us-dollar/

Anybody sets the price, on exchange A the price can be €1000,- while on exchange B the price is €10000,-, although this is highly unlikely to happen.

 

[JayMC]

Nothing is backing the United States Dollar either.

It used to be backed by gold, but that got removed a while ago:
http://buygoldandsilversafely.com/gold/what-really-backs-the-us-dollar/

Anybody sets the price, on exchange A the price can be €1000,- while on exchange B the price is €10000,-, although this is highly unlikely to happen.

The US government backs the usd...

 

[JayMC]

Thank you for the response![DOUBLEPOST=1513660017][/DOUBLEPOST]

Only a limited about of bitcoin can ever be mined. Bitcoin is worth so much today because it was the cryptocurrency that prevailed in the early years. It has value because people give it value. Same with gold irl: it's just a rare metal with no real physical use other than to serve as a globally accepted type of exchangeable currency. As more people buy bitcoin (limited to 21 mil) and more places start accepting it as a legitimate form of currency, then the value will keep increasing. Maybe these memes will clarify

Thank you but wdym about 21mil?

 

[Zyger]

Thank you for the response![DOUBLEPOST=1513660017][/DOUBLEPOST]
Thank you but wdym about 21mil?

21 million bitcoins can be mined total

 

[BOOP]

Thank you for the response![DOUBLEPOST=1513660017][/DOUBLEPOST]
Thank you but wdym about 21mil?

There are 21mil bitcoins I think is what he means

 

[mothh]

The US government backs the usd...

No they don't.

They print the money, they don't back it.

USD has value because people think it has while in fact it is just a piece of paper.

If the US government says USD has not more value it won't have any more value, no government or person can say that about Bitcoin.