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SpartanZA
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Where does BitCoin get its value from?

Mon Mar 28, 2016 7:47 am

Hello all!

Ok. This may sound like a stupid question to some but no question is a stupid question.

I am in South Africa and I monitor the BitCoin exchange rate in USD and ZAR (South African Rand).

Firstly, is BitCoin valued individually against all currencies or just the USD? For example:
1 Btc = 400 USD
1 btc = 6000 ZAR
400 USD = 6000 ZAR

It seems that it is only measured against the dollar. Can I get some thought on this.

Additionally, how did it get the USD value? It's not backed by anything according to my understanding. If it's not backed by anything, then in the same aspect it is no different to USD or any fiat currency. I know it is massively different in other ways, however I am just focusing on thia aspect of it.

Was it the first transaction of the pizza in 2009 that gave it it's first value?

I understand that the market decides it's value, but how? Hoping someone can explain simply and not say, it's economics or something vague like that.

Thank you guys in advanced.

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Re: Where does BitCoin get its value from?

Mon Mar 28, 2016 11:24 am

In short, people accept and trade in Bitcoin because other people accept and trade in Bitcoin. It is recognized and accepted as a currency by many.

Bitcoin is decentralized and limited. This is a major factor for many Bitcoin users. Bitcoin is hard for governments to trace and tax. Also, unlike fiat money produced by central banks, there is a cap set on total Bitcoins, limiting how much the currency can devalue through inflation.

Bitcoin acts like an equity investment. The market value of Bitcoins has had wild swings in value and even a market cap.

Bitcoin is like a share of the Internet in 1995. Does the internet has value in your opinion?
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Re: Where does BitCoin get its value from?

Mon Mar 28, 2016 11:28 am

Thank you for the explanation. I do understand most of what you said and that isn't an issue for me.

The issue I am still unclear about is the value. Who was the 1st person that decided it was x value?

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Re: Where does BitCoin get its value from?

Mon Mar 28, 2016 9:37 pm

Thank you for the explanation. I do understand most of what you said and that isn't an issue for me.

The issue I am still unclear about is the value. Who was the 1st person that decided it was x value?

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Satoshi decided the value.

Demand for Bitcoin increased the value to where it is today.
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Re: RE: Re: Where does BitCoin get its value from?

Tue Mar 29, 2016 7:58 am

Thank you for the explanation. I do understand most of what you said and that isn't an issue for me.

The issue I am still unclear about is the value. Who was the 1st person that decided it was x value?

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Satoshi decided the value.

Demand for Bitcoin increased the value to where it is today.
How did Satoshi decide on the value? I have this burning desire to understand this.

And how does the market dictate? I know it does, but how?

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Re: RE: Re: Where does BitCoin get its value from?

Tue Mar 29, 2016 10:47 pm

Thank you for the explanation. I do understand most of what you said and that isn't an issue for me.

The issue I am still unclear about is the value. Who was the 1st person that decided it was x value?

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Satoshi decided the value.

Demand for Bitcoin increased the value to where it is today.
How did Satoshi decide on the value? I have this burning desire to understand this.

And how does the market dictate? I know it does, but how?

Sent from my SM-N910F using Tapatalk
Can you define value for me, value to USD, or?

As for how the market dictates, supply and demand.
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SpartanZA
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Re: RE: Re: RE: Re: Where does BitCoin get its value from?

Tue Mar 29, 2016 10:50 pm


Satoshi decided the value.

Demand for Bitcoin increased the value to where it is today.
How did Satoshi decide on the value? I have this burning desire to understand this.

And how does the market dictate? I know it does, but how?

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Can you define value for me, value to USD, or?

As for how the market dictates, supply and demand.
There must have been a time where is was of value $0 and then, the next moment it was $0.01 and to what BitCoin amount?

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Re: RE: Re: RE: Re: Where does BitCoin get its value from?

Tue Mar 29, 2016 11:05 pm

How did Satoshi decide on the value? I have this burning desire to understand this.

And how does the market dictate? I know it does, but how?

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Can you define value for me, value to USD, or?

As for how the market dictates, supply and demand.
There must have been a time where is was of value $0 and then, the next moment it was $0.01 and to what BitCoin amount?

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If I recall correctly, it was sub-penny at 0.008 USD.
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Re: RE: Re: RE: Re: Where does BitCoin get its value from?

Wed Mar 30, 2016 10:40 am

How did Satoshi decide on the value? I have this burning desire to understand this.

And how does the market dictate? I know it does, but how?

Sent from my SM-N910F using Tapatalk
Can you define value for me, value to USD, or?

As for how the market dictates, supply and demand.
There must have been a time where is was of value $0 and then, the next moment it was $0.01 and to what BitCoin amount?

Sent from my SM-N910F using Tapatalk
hello SpartanZA,

satoshi did not decide any value.

but yes, there was this moment. the birth of bitcoins value.

It was at this price when Jacksonville resident Laszlo Hanyecz purchased a pizza for 10,000 BTC, or $25. (actually it was more than one pizza)

so why did Laszlo paid 10000 BTC for a pizza and another guy was ok with this payment? because the pizza-maker thought that bitcoin had value: exactly 10k bitcoins for 1 pizza. and Lazlos was okay with paying 10k bitcoins for a pizza. both parties agreed that that was bitcoins value.
the market made the price.

at a later stage there was an exchange called mtgox where buyers and sellers met each other and traded. the market (people) made the price.
(and people traded over various forums and chats of course)
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More informations about Bitcoin and scaling BTC on

bitcoin.org/en/

https://bitcoincore.org/en/2015/12/23/c ... reases-faq

&
reddit.com/r/Bitcoin/

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SpartanZA
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Re: Where does BitCoin get its value from?

Wed Mar 30, 2016 1:56 pm

That was the answer I was hoping to hear, but I couldn't wrap my head around it.

Thank you.
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Re: Where does BitCoin get its value from?

Wed Mar 30, 2016 6:52 pm

You are welcome :)
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reddit.com/r/Bitcoin/

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Re: RE: Re: RE: Re: Where does BitCoin get its value from?

Wed Mar 30, 2016 9:11 pm


Can you define value for me, value to USD, or?

As for how the market dictates, supply and demand.
There must have been a time where is was of value $0 and then, the next moment it was $0.01 and to what BitCoin amount?

Sent from my SM-N910F using Tapatalk
hello SpartanZA,

satoshi did not decide any value.

but yes, there was this moment. the birth of bitcoins value.

It was at this price when Jacksonville resident Laszlo Hanyecz purchased a pizza for 10,000 BTC, or $25. (actually it was more than one pizza)

so why did Laszlo paid 10000 BTC for a pizza and another guy was ok with this payment? because the pizza-maker thought that bitcoin had value: exactly 10k bitcoins for 1 pizza. and Lazlos was okay with paying 10k bitcoins for a pizza. both parties agreed that that was bitcoins value.
the market made the price.

at a later stage there was an exchange called mtgox where buyers and sellers met each other and traded. the market (people) made the price.
(and people traded over various forums and chats of course)
LiteCoinGuy, you are miss-informed, though it is a cute story.

People were trading Bitcoin for USD before ordering pizza!
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SpartanZA
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Re: RE: Re: RE: Re: RE: Re: Where does BitCoin get its value from?

Wed Mar 30, 2016 9:18 pm

There must have been a time where is was of value $0 and then, the next moment it was $0.01 and to what BitCoin amount?

Sent from my SM-N910F using Tapatalk
hello SpartanZA,

satoshi did not decide any value.

but yes, there was this moment. the birth of bitcoins value.

It was at this price when Jacksonville resident Laszlo Hanyecz purchased a pizza for 10,000 BTC, or $25. (actually it was more than one pizza)

so why did Laszlo paid 10000 BTC for a pizza and another guy was ok with this payment? because the pizza-maker thought that bitcoin had value: exactly 10k bitcoins for 1 pizza. and Lazlos was okay with paying 10k bitcoins for a pizza. both parties agreed that that was bitcoins value.
the market made the price.

at a later stage there was an exchange called mtgox where buyers and sellers met each other and traded. the market (people) made the price.
(and people traded over various forums and chats of course)
LiteCoinGuy, you are miss-informed, though it is a cute story.

People were trading Bitcoin for USD before ordering pizza!
Can we get more insight?

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and this moment too shall pass

iFixBTCmemoryIssues
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Re: RE: Re: RE: Re: RE: Re: Where does BitCoin get its value from?

Thu Mar 31, 2016 8:53 pm


hello SpartanZA,

satoshi did not decide any value.

but yes, there was this moment. the birth of bitcoins value.

It was at this price when Jacksonville resident Laszlo Hanyecz purchased a pizza for 10,000 BTC, or $25. (actually it was more than one pizza)

so why did Laszlo paid 10000 BTC for a pizza and another guy was ok with this payment? because the pizza-maker thought that bitcoin had value: exactly 10k bitcoins for 1 pizza. and Lazlos was okay with paying 10k bitcoins for a pizza. both parties agreed that that was bitcoins value.
the market made the price.

at a later stage there was an exchange called mtgox where buyers and sellers met each other and traded. the market (people) made the price.
(and people traded over various forums and chats of course)
LiteCoinGuy, you are miss-informed, though it is a cute story.

People were trading Bitcoin for USD before ordering pizza!
Can we get more insight?

Sent from my SM-N910F using Tapatalk
Yes, like this:

1) people traded over various forums and chats of course
2) pizza story
3) later stage there was an exchange called mtgox

from there, we are where we are today.

Satoshi did define the value of Bitcoin, however - not the USD value.
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Re: Where does BitCoin get its value from?

Fri Apr 01, 2016 10:38 am

like i wrote:

"(and people traded over various forums and chats of course)"


that was the first stage indeed.
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reddit.com/r/Bitcoin/

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Re: Where does BitCoin get its value from?

Fri Apr 01, 2016 12:19 pm

I don't think Satoshi ever defined bitcoin in a USD or any value other than the technological advance bitcoin was. He sent the first transaction to Hal for no USD exchanged.

Bitcoin would have first got it's value by one guy saying to the next that I will give you X amount of USD for X amount of bitcoins.
It's a simple case of supply and demand
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Re: Where does BitCoin get its value from?

Fri Apr 01, 2016 2:40 pm

Right. In the beginning is was worthless data people sent to each other. a proof of concept.
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Re: Where does BitCoin get its value from?

Sat Apr 02, 2016 5:58 am

Thank you so much for the replies guys. Really appreciate it


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Re: Where does BitCoin get its value from?

Sun Apr 10, 2016 11:02 am

Bitcoin has value because it is useful and has utility, so there is demand for it.

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