Digital currency has real value. 

Here’s why    Digital money has actual value —

Bitcoin's price has been in uncontrolled progress since its establishment. 2017 alone saw massive profits, starting the year at under $1,000 and, at its peak, breaking $19,000, according to industry site CoinDesk.

On Tuesday, it was trading at $11,943, a decrease of 12 percent, according to CoinDesk.

As bitcoin's popularity flows and its price goes up and down, more and more people are asking the same question: How does Bitcoin, something that's mostly hidden and abstract, have value?

Shortage and benefits

In economics, something has value if it checks the following two boxes: scarcity and utility. Lack just means that something has a limited supply. In the case of bitcoin, the cryptocurrency has a set cap of 21 million bitcoins.

Many analysts noticed that this set cap makes bitcoin more attractive than other assets, even gold. That's because unlike with gold, there's no need to worry about a digital Gold Rush. A treasure trove of Bitcoin won't ever be "discovered," causing the crypto's price to crash with a stream in supply.

"There are potency millions of times more gold underground than has been removed, " Tom Lee told this who is the head of research at Fundstrat Global Advisors.

So if bitcoin has the shortage, what about its benefits?

Most of the people believe that the cryptocurrencies benefit lies in its potential to be a more regular item than we already have. Supporters of bitcoin like it for many reasons.

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First, Bitcoin is a decentralized currency; it means that;  no government, bank or single person has control over it; it can't be collapsed by fraud at all.  You can purchase a small product like a doughnut with it as quickly as you can purchase a house. And finally, the code it's built on is open source, meaning that it's available for anyone to look at, scrutinize and even modify. This means bitcoin is continuously evolving and improving.

None of those uses is permanent, however. And that's a point bitcoin doubter often make. Gold, for example, is thought to have stable value because of its applications in industries like dentistry and electronics. Some people even argue that dollar bills have permanent value, since they can be used as kindling or to write on.

But as you break down either of those claims, it becomes clear that gold and paper money don't have that much stable and lasting value either.

It can be difficult to see the digital currency as having value because you can't keep it in your hand like you can a dollar bill or gold.

As a solution, Lee said to think of bitcoin as a digital business.

Significance and profits of cryptocurrency

It's evident that some people believe bitcoin has its worth and if it has, it's difficult not to be surprised how much a single bitcoin could finish being value.

There are two central premises being used to calculate the potential value of one bitcoin that supposes that bitcoin, which some people think, to be a better asset than gold, could end up replacing either a portion of gold or gold entirely.

Share your views about;

 if bitcoin cost drops there would be no value of cryptocurency or bitcoin would not go up?

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