My Response to Someone Regarding the Value of Bitcoin
I had someone ask me why institutions wouldn't just let Bitcoin and all of the other "altcoins" go to zero. They said that Bitcoin had no underlying value. This was my response:
"You're asking why institutions wouldn't let an asset they're heavily invested in—like Bitcoin—crash to zero. Consider this: major institutions still hold enormous amounts of Bitcoin. If they simply stood by and let the price collapse, they'd be walking away from billions of dollars of value. It's in their own financial interest to support the network and price during major corrections.
Fundamentally, all currency is consensus-driven. The U.S. dollar isn't backed by gold anymore; it only holds value because millions of people, businesses, and governments collectively agree it does. When you swipe your card at the store, it's not physical cash, but digital money—a shared belief transferred over banking networks.
Bitcoin is no different. Its value comes from the fact that millions, soon billions, of people (including governments and institutions) recognize and use it as money. It is globally recognized, taxed like any other capital asset, and even requires real-world electricity and hardware to mine—further anchoring it in tangible economic activity.
Institutions, governments, and individuals have real incentives to protect their Bitcoin holdings. Unlike most alternative cryptocurrencies ("altcoins"), which lack broad consensus and utility (besides maybe ETH and SOL), Bitcoin is institutionalized, battle-tested, and accepted by a global network. That's why it's not "going to zero," and why institutions are motivated—out of self-preservation and belief in the asset—to step in when prices get too low.
In short: Bitcoin's value is consensus-enabled, economically rooted, and defended by those who own it—just like the strongest forms of money."
Fundamentally, all currency is consensus-driven. The U.S. dollar isn't backed by gold anymore; it only holds value because millions of people, businesses, and governments collectively agree it does. When you swipe your card at the store, it's not physical cash, but digital money—a shared belief transferred over banking networks.
Bitcoin is no different. Its value comes from the fact that millions, soon billions, of people (including governments and institutions) recognize and use it as money. It is globally recognized, taxed like any other capital asset, and even requires real-world electricity and hardware to mine—further anchoring it in tangible economic activity.
Institutions, governments, and individuals have real incentives to protect their Bitcoin holdings. Unlike most alternative cryptocurrencies ("altcoins"), which lack broad consensus and utility (besides maybe ETH and SOL), Bitcoin is institutionalized, battle-tested, and accepted by a global network. That's why it's not "going to zero," and why institutions are motivated—out of self-preservation and belief in the asset—to step in when prices get too low.
In short: Bitcoin's value is consensus-enabled, economically rooted, and defended by those who own it—just like the strongest forms of money."
I would've added more if the response hadn't gotten so long. I can't wait to hear what all of the Bitcoin contrarians have to say.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
Investor | Swing Trader | Day Trader | Options Trader | Analyst | Writer | Knowledge Seeker | Teacher | Musician | Lover
354
Followers
34
Following
1115
Visitors
Follow
aguyisok : gist of the story... stack sats
Oneironaut88 OP aguyisok : Yes, that is absolutely the gist.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Annoynimous : anything can have value, a while ago a cs gamer thinks that the in game skins are worth more than his btc collection, it all depends on mindset and demand vs supply.
Oneironaut88 OP Annoynimous : I know people like that. Those skins often require currency to be obtained as well, further anchoring them to the "real world". Sometimes those skins have even more value due to being limited edition, akin to the scarcity of gold and Bitcoin.
Annoynimous Oneironaut88 OP : but wasn't there news that the latest patch made their skins worthless? some even committed suicide
Oneironaut88 OP Annoynimous : Damn. I don't think that I heard about that. That makes me not miss being a gamer.
Annoynimous Oneironaut88 OP : yeap it happened recently to cs 2. you can google about it real sad story.
实体金 : The Malaysian government is considering a complete ban on Bitcoin. If the policy is passed, domestic access to networks related to Bitcoin will be blocked, as electricity theft for illegal mining has caused annual losses of billions of Malaysian ringgit, with Bitcoin-related tax revenues being insufficient to cover even a fraction of these losses. Are other countries also facing this issue of illegal mining?
75372086 : Totally BS. Bitcoin and similar just do NOT have any value. they are nothing like official currencies like US dollar, which are much more widely recognized. Bitcoin has been trying to get to a similar position. However as of today, it is far far away from that. at least China government won't recognize the value. Then all this crazy price is simply supported by your own speculation and greedy. Bitcoin goes ZERO!!! it is just another digital Tulip.
Oneironaut88 OP 实体金 : I didn't hear about that happening in Malaysia. It seems like the real issue is theft though, as people can also steal electricity to grow indoor marijuana. I'd have to look into whether it's happening in other countries. I'm in the U.S. and it doesn't seem to be common here.
View more comments...