How does the creation and fluctuation of value for something immaterial like cryptocurrency work? Surprisingly, the mechanisms for digital assets are largely similar, if not identical. If we take Bitcoin as an example, there is a limited supply – capped at 21 million. Once that supply has been exhausted, that’s it. There will never be more than 21 million Bitcoin, which is one reason why many expect increased demand will continue to drive the cryptocurrency’s value upwards in the years to easiest way to buy crypto come. And unlike fiat currency, the fixed supply of cryptocurrencies means that devaluation through inflation is unlikely. The price of bitcoin has soared from a mere $759 a year ago to an astounding $11,760 today. Naturally, many are left scratching their heads. Why is bitcoin so valuable? In what follows, I consider two common views before offering my own.