Day 7
Chapter 1
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Volatility of Bitcoin Prices
When someone asks you what is the
worth of the bitcoin units that you own,
how can you readily answer the
question?
The fundamental value of any particular
currency is actually a function of the
consumer demand for that currency and
the consumers’ capability to use the
currency to trade it for valuable goods
and services. Because a lot of common
currencies are no longer linked to the
worth of an underlying product or
commodity such as gold and other
precious metals, a bitcoin unit will only
be valuable when there are people or
consumers who would want to own them
and use them for trade.
Next topic
TRANSACTIONS
How do Bitcoin Transactions
Work?
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