How is the value of Bitcoin created?

How is value created? Each person has a wide variety of standards for viewing value. Things that are valuable to some may not mean anything to others, or vice versa. So, is value given meaning and created by the public, which means the absolute majority?

 

There is a picture of a luxury bag above. Luxury goods can never be held by the majority of the public. It's a bag monopolized by a few and used by a few rich people in their own leagues. When the law of supply and demand is applied, the supply is small, but the demand is not large. This is because it is not an easily accessible price range.

Is it because the "bag" function is excellent? Of course not. The luxury bag up there doesn't have any special function. It's not even more functionally superior to ordinary bags, that is! Luxury is defined by a small number of people and valued by them. "Value" is not the absolute majority of the public, but the minority defines it and the envious public believes and follows the values defined by the minority.

Contrary to what is generally thought, it must be their own league used by a small number of capitalists so that the majority of the public will be interested, want to participate, and yearn for it. For that reason, faith in the values set by a small number of rich people spreads and eventually it is recognized as a luxury by the public.

 

How much difference is there in function between the Chanel bag and the shopping bag above? Rather, it may be better efficient to buy hundreds to thousands of shopping bags with the money to buy Chanel bags. Now I know that luxury goods have nothing to do with popularity. Then I'll apply this to Bitcoin as it is.

Numerous virtual currencies are rampant, but Bitcoin is by far the best among virtual currencies. Substituting the story of the luxury bag above into Bitcoin will help establish the concept. There are many virtual currencies that are functionally better than Bitcoin. It is natural that the latest cryptocurrency is technically superior due to advances in technology.

Was it related to the original function and luxury goods of the bag? It had nothing to do with it. It is wrong that the technology of virtual currency is related to the creation of the value of the currency. Moreover, it is even more meaningless to discuss popularity. On the contrary, if high-value wealthy people use Bitcoin as a tool for storing value, Bitcoin will not only become difficult for the general public to access from now on, but will also soar in value and will likely exist like luxury goods in their own leagues.

Let's keep an eye on the current situation. Bitcoin's price range is overwhelmingly higher than other virtual currencies. People who currently own Bitcoin are likely to be wealthy. Rather, the absolute majority of the public is not only less interested in Bitcoin, but also focusing on coins that form a much lower price range than Bitcoin, even if they are interested in virtual currency.

No matter what new virtual currency comes out, it is difficult to break down the symbolism of the first price. No matter how similar it is, you can't escape the image of "fake." Virtual currency through blockchain technology is very likely to remain as a luxury product only "Bitcoin." Of course, numerous counterfeits will constantly try to imitate luxury goods and seduce people.