How does Bitcoin maintain its value?
The restrictive encryption on Bitcoin controls the creation of additional units, as new blocks are only produced when the encryption is solved – we covered the technicalities of Bitcoin’s blockchain recording in HWM March
2017. Its availability and growth strongly resembles the effort required for mining of gold and silver in the early days; in Bitcoin’s case, it takes significant computational power to solve its encryption, and it has a hard upper limit for its total circulation. When it was relatively unknown in July 2010, 1BT (one Bitcoin) was merely US$0.07. As of early June 2017, 1BT is worth US$2,824.99, according to Google’s currency exchange rate.