What gives Bitcoin Its Value
The most common argument given by crypto enthusiasts is the lack of value of bitcoin or other cryptocurrencies. However, this very much false bitcoin is a service rather than a product just like services like zomato, Swiggy, Ola, amazon it adds value to our life by making finance decentralized, Facilitating cross border transactions in seconds, etc. in 2021 the global crypto community donated over 1 billion dollars in cryptocurrencies to help support Indian covid relief, in just minutes using a single tweet from the founder of Polygon - Sandeep. Something like this would have taken months in the traditional banking system. This is the true power of cryptocurrencies. Similarly in 2021 millions of dollars have been donated to Ukraine using crypto.
One can also argue that Bitcoin's value is similar to that of precious metals. Both are limited in quantity and have special use cases. Precious metals like gold are used in industrial applications, while Bitcoin's underlying technology, the blockchain, has some applications across the financial services industries. Bitcoin's digital provenance might even serve as a medium for retail transactions one day.
Cryptocurrencies unlike the fiat currency system are scarce, and cannot be counterfeited. The only way that one would be able to create a counterfeit bitcoin would be by executing what is known as a double-spend. This refers to a situation where a user "spends" or transfers the same bitcoin in two or more separate settings, effectively creating a duplicate record. This is near impossible to do blockchain has stood the test of time and no one since its existence has ever been able to hack the network. The growing demand and shrinking supply is one of the main reasons for its increasing values