Two Key Factors That Increase The Value Of Bitcoin

Investors are looking forward to get a scope to invest in Bitcoin and there are valid reasons behind it. Bitcoin basically is a form of online transaction which is completely decentralised, transparent, easy and secure. Thus it has provided the investors best reasons to substitute it with the other means of central bank controlled fiat money.

Many people wonder why Bitcoin has such high values when they look at the site of news? It is understandable that it provides the best mean of monetary transaction where no dealing of hard cash is involved, but does it justify the high value it has? Don’t you feel that Bitcoin is overhyped? Well, this blog will clear your confusion.

There are two factors that decide the high value of cryptocurrency or rather Bitcoin. It is said and applicable for all successful currency that the requirements must be met in terms of various mandatory qualities that include divisibility and transferability. We will focus on each of the qualities one by one so that the entire idea can be crystal clear.


Typically, successful currencies are capable of being divided into small incremental units. To allow a single currency to function properly as the medium of a transaction, it has to be flexible because that is directly associated with the divisibility. It is imperative for the currency to be divided sufficiently so that the value can accurately reflect throughout the entire economy.


Another important quality of the currency should lie in its transferability. It must be easily transferred within a particular country, or between nations. Bitcoin in this case is highly transferable because it includes no geographical barriers. Bitcoin is not country-specific so one Bitcoin owner can perform the transaction from any point of the world to another point.

There are other factors too but let the discussion be the topic of our next blog.

What do you think?

Stefan Smith

Written by Stefan Smith

Stefan Smith is currently the managing editor of Nfl Touch Down. She is the author of ‘Sweet Life’ and the recipient of Pen and Scroll award.

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