Let’s start with the least debated function—bitcoin as a unit of account. This means the currency is used to denominate the value of commodities, services, assets and other items in a market.
What is the fundamental value of Bitcoin?
Similar to Fiat currency, Bitcoin (or most of the cryptocurrencies) is also not backed by any gold or silver hence does not have any intrinsic value. The value of any currency comes from the backing of the state and the trust that people have over the government.
What are the characteristics of Cryptocurrencies?
The 3 key characteristics of cryptocurrencies are that they are trustless, immutable, and decentralized.
What is fundamental analysis in Cryptocurrency?
While there are many different methods for evaluating the price of bitcoin, fundamental analysis may be the most integral for figuring out its true value. Fundamental analysis is the evaluation of economic, financial and other key variables, known as fundamentals, to determine a security’s true value.
What is the concept of Cryptocurrency?
A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology—a distributed ledger enforced by a disparate network of computers.