Bitcoins are not considered valuable as a physical commodity unlike gold and silver. Neither are they accepted as a legal tender. However, Bitcoin has its own value for many reasons.
It is popular and many people trust it. Bitcoin is simple, smooth and a modern-day alternative for concept of money. It has its value since it simplifies and integrates the exchange of goods and services in the modern contemporary online internet enabled system unlike the traditional method of barter system. Another reason is it is decentralized and raises the possibility of changing the global financial system for the better. It works as an equity investment with its market value swinging up and down. Bitcoin community is as active as any social networking site.
Another reason for its value is it is still limited in supply. It is not found everywhere It follows a capping system and is believed to be capped at 21 million and currently it has about 16.2 million bitcoins
in circulation. Bitcoin has utility. It is the most widely used digital currency. Several retail merchants around the world are accepting as a form of payment increasing its usefulness.
Bitcoin creates value for both the old-time investors as well as the new entrants by distancing a limited currency supply applying the outdated method of supply and demand with the latest digital currency form.