Professor Andrew Urquhart, Head of Finance at Birmingham Business School, explores Bitcoin’s value in his eighth Professor Coin column. Bitcoin’s market capitalization has grown to hundreds of billions, but its value remains a mystery. Scarcity, demand, network effects, and mining costs all contribute to Bitcoin’s worth, along with sentiment and speculation. Studies show that Bitcoin’s value is influenced by factors like scarcity, demand, network effects, and mining costs. It behaves like a commodity, tech stock, and speculative token, making valuation challenging but fascinating. Bitcoin’s value is anchored in users’ beliefs about its potential future utility, adoption, and incentives.

Read more at Yahoo Finance: What Gives Bitcoin Its Value?