Bitcoin 101: What makes bitcoin valuable?

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This is a great question that stumps many people, and it is somewhat confusing at first. Something like a car or a fishing pole is clearly valuable. Right? A car can be used to get you from point A to point B at roughly 70 miles per hour. A fishing pole can help you find food if you’re near a large body of water. These are both clearly useful and therefore valuable to some extent, right? Last time I checked, I had to pay to buy both a car and a fishing pole.

But what about oxygen? Is oxygen valuable? Do you need oxygen to breathe and live? Yes. That sounds pretty valuable, but how much have you paid for oxygen for your whole life? Probably nothing. It’s free, even though it’s valuable? So if something is useful then it could be valuable, but it’s not guaranteed to have a price. If it’s useful and abundant, it may be free or close to it. This makes sense. Prices of goods and services are set at the intersection of supply and demand, basic economics.