It’s value is perceived as the resources it takes in computing power to solve the algorithms which produce the block chain. Each block provides a level of security that you don’t have with other digital fiat assets. It’s an agreed upon value because of what it takes to produce. Yes there are ones that are basically produced from nothing and those are the most volatile but they have collective value in the holders eyes just because they like the concept like DOGE coin. There are several meme tokens that users back and have value to THEM just because the concept is liked. That’s the same as what’s happening with meme stocks like GameStop, AMC, Nokia, Koss, etc. Those stocks haven’t risen because of actual value of the company or anything their doing, but only because there are stockholders that like them and want to drive up their perceived value.
I’m no expert on any of this, but that’s my opinion on all of it.
It’s value is perceived as the resources it takes in computing power to solve the algorithms which produce the block chain. Each block provides a level of security that you don’t have with other digital fiat assets. It’s an agreed upon value because of what it takes to produce. Yes there are ones that are basically produced from nothing and those are the most volatile but they have collective value in the holders eyes just because they like the concept like DOGE coin. There are several meme tokens that users back and have value to THEM just because the concept is liked. That’s the same as what’s happening with meme stocks like GameStop, AMC, Nokia, Koss, etc. Those stocks haven’t risen because of actual value of the company or anything their doing, but only because there are stockholders that like them and want to drive up their perceived value. I’m no expert on any of this, but that’s my opinion on all of it.