In economics, something has value if it is scarce and useful. Scarcity means that something has a finite supply. In the case of bitcoin, the cryptocurrency has a set cap of 21 million bitcoins.
Bitcoin’s utility mainly lies in its potential to be a more efficient commodity than those we already have.
- Bitcoin is decentralized. No government, bank or single person has control over it. It is not maneuverable by corruption at the top.
- It is divisible. Currently a bitcoin can be divided down to 8 decimal places. Thus 0.00000001 BTC is the smallest amount that can be handled in a transaction. But the protocol and software can be modified to handle even smaller amounts, if necessary. You can buy anything with it – small items like candies at your grocery store and large items like a yacht as well.
- The code is built on open source, meaning that it’s available for anyone to look at, inspect and even modify. This means that bitcoin is constantly evolving and improving.
Prefessional developer and crypto currency fan 🙂