Bitcoin has more and more receiving a lot of attention. It's one of many digital currencies that exist today that act and operate like ordinary money but are purely electronic—being data in computers. And this can be perplexing since, without a tangible Bitcoin, it may be difficult to understand how it can have value.
Despite the fact that Bitcoin has some money-like characteristics, economists and authorities remain skeptical that it is currently used as money. This is due to the fact that only a small number of transactions and items are now denominated in Bitcoins. Despite the fact that users exchange Bitcoin in massive volumes and transfer wealth over the network, there is currently minimal business activity.
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To begin with, Bitcoin has no intrinsic worth, which implies it is of limited utility to us outside of its economic context. However, most real-world currencies are the same way: money only has value because the government that provides it says it does.
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