how bitcoins generate value

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Raheel Hasan

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Apr 17, 2013
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What is the purpose of bitcoins?

Why any one buy bitcoins, i mean from where the value is generated. I have read about it but i cant understand why anyone will buy bitcoin.
 
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Mahisse
Bitcoins are defintitely a bit of an abstract thing. I don't understand much of it myself but as I've understood it the value is coming from the "time and labour" that you throw into mining bitcoins. In the beginning it was easy to mine bitcoins and they had little value then, but as the size of "code packages" that you have to mine got bigger and more complex to mine you will have to throw more labour and time into harvesting those bitcoins. As an example these times, seriously dedicated bitcoin miners have several computers running 24/7.
It's abstract and that's why bitcoins may turn out to be worthless with time. It's not really worth it today with only one computer as you use almost as much on the eletrical bill as you earn on...
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Mahisse

Mahisse

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Nov 26, 2012
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Bitcoins are defintitely a bit of an abstract thing. I don't understand much of it myself but as I've understood it the value is coming from the "time and labour" that you throw into mining bitcoins. In the beginning it was easy to mine bitcoins and they had little value then, but as the size of "code packages" that you have to mine got bigger and more complex to mine you will have to throw more labour and time into harvesting those bitcoins. As an example these times, seriously dedicated bitcoin miners have several computers running 24/7.
It's abstract and that's why bitcoins may turn out to be worthless with time. It's not really worth it today with only one computer as you use almost as much on the eletrical bill as you earn on mining bitcoins with a single computer. That was really only worth it in the beginning. You didn't make the train, sorry.

Of course, as bitcoins are beginning to be considered as a real currency on some websites the value of bitcoins get more established as you can trade the bitcoins to actual goods.
 
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