Why does crypto have value?
Crypto has value because people use it and agree it’s worth something.
Reasons people trust and use crypto:
- Scarcity: Some coins have a limited supply
- Utility: You can use crypto to send money globally, often faster and with fewer fees.
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Security: Blockchain tech makes transactions hard to fake or tamper with.
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Trust in the network: Blockchains are maintained by independent computers, not a single company or government
- Market demand: Prices change based on buyers and sellers
Just like stocks, prices go up and down.
Common mistake:
Assuming crypto prices only go up - volatility is normal.