The value of Bitcoin is distinct from its price, as is the case with any other currency, whether fiat or alternative. Value is an intrinsic measure determined by the defining characteristics that compose the nature and functionality of a currency, whether it is fiat or alternative. Price, on the other hand, is influenced by external factors beyond the qualitative characteristics of the currency. The value of Bitcoin is what gives meaning to its functionality and its use by many users worldwide. The question is, what factor breathes life into this value?

This value does not stem from the fact that each unit of Bitcoin represents a certain value of fiat money in digital form. It is not backed by any tangible asset, such as fiat currencies like the US dollar, the euro, etc. While it may express such a value, it remains independent of the conditions of existence and circulation of fiat money. To be concise, the real value of Bitcoin primarily depends on its utility and secondarily on its scarcity.

In contrast to price, the value of Bitcoin is not a fluctuating measure influenced, for instance, by adoption levels or speculations regarding its use and strength in the transactional market compared to other currencies. Bitcoin is supported not by any asset but by its core Code and its utility, which is a derivative of this Code and the Blockchain ledger.

The fact that Bitcoin is not a centralized network driven by a single issuing authority or a trusted third party, but rather a decentralized and distributed network across many users, relying solely on its Code as an automated, programmed, and programmable "authority," is what empowers the currency. Its independence from any entity, particularly an organization with specific policies imposing restrictive terms on the currency's functionality, coupled with its ongoing programmability, is precisely what creates Bitcoin's utility.

As a programmable currency, it can have various functionalities—from a simple payment method or investment medium to independence from the international banking system and any intermediary in all types of transactions. This includes the creation of DACs (Decentralized Autonomous Corporations), the first decentralized companies that operate without actual labor provided by employees. Bitcoin’s flexibility has resulted in the community continuously discovering new uses for the currency.

The scarcity of Bitcoin comes second, primarily because, without its utility, Bitcoin would not have achieved the adoption and growth it has seen. Scarcity, as a measure, is mainly related to the limited number of bitcoins that can ever be produced. The total number of bitcoins cannot exceed 21 million. Every four years, the number of bitcoins produced is halved until it reaches the maximum limit of 21 million, which is the ultimate cap for now.