Bitcoin is often described as digital gold. Like gold, bitcoin cannot be created out of thin air. Gold must be mined out of the ground, and bitcoin must be “mined” through computational power. Bitcoin also has a finite supply just like gold.
There will only ever be 21 million bitcoins in existence. This scarcity gives bitcoin its value as people are willing to pay for a scarce asset.
Another similarity between bitcoin and gold is that they are both decentralized. There is no central authority that controls either asset. With gold, no one can print more gold whenever they want.
With bitcoin, no one can print more bitcoins whenever they want. This decentralization is another key factor that gives both assets value.
So, where does bitcoin get its value? Bitcoin gets its value from being scarce and decentralized. These two factors make bitcoin a valuable asset that people are willing to pay for.