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Why the price of bitcoin has always been valuable

One factor that has made the bitcoin price so attractive over the years and valuable at the same time is the scarcity of the Bitcoins. Basically, unlike other traditional currencies (US Dollar, Euro, Sterling Pound, etc.) which are controlled by centralized institutions, Bitcoin is a decentralized digital currency payment system. What this means is that no single institution is controlling this cryptocurrency. Although it is fully decentralized, practically, it is developed and fully supervised by miners, traders, contributors, and big exchanges. These parties have abig influence on the cryptocurrency, and they are behind limiting the number of bitcoins that can be created or mined.

According to many bitcoin news websites, in order to make more bitcoins, miners must vote on such a decision. One thing to understand is that miners are always paid in bitcoins anytime they offer their services. Logically, these people will never be willing to vote for increasing the number of bitcoins in circulation because this will decrease its value. If the bitcoin value is decreased, the miners’ assets would also decrease. It is not easy for a single person to change this protocol. If anybody wants to change anything in the protocol, there must be a vote. The vote is always democratic, and every miner will have to vote.

Currently, there is a cap to only mine 21 million bitcoins. While this number may seem small to some people, not all of these bitcoins are in full circulation, and there are only 16 million bitcoins on the market right now. New investors still have 5 million more bitcoins to invest in. Generally, the value of bitcoin is high because the cryptocurrency is limited in supply and this factor is likely to remain the same for a long time. Bitcoin has a high demand despite the fact that its supply is limited. Therefore, the effects of demand and supply will always make the currency valuable.