“The actual value that these units have in people’s mind, like Bitcoin, for example, is whatever people believe it to be.”
In recent years, cryptocurrencies have been popping up like weeds.
Cryptocurrency is so popular that after 22 years of operation, the Lakers and Clippers home arena was renamed Crypto.com Arena in December of 2021.
Bitcoin, the first and best-known cryptocurrency, has a current value in the tens of thousands of dollars and at one time was above $70,000.
Okay, so cryptocurrency is popular, but what determines its monetary value?
Professor Andrew Wu from the University of Michigan teaches cryptocurrency to more than 120,000 students, and he says the reasoning behind the value of cryptocurrency is very simple.
“The actual value that these units have in people’s mind, like Bitcoin, for example, is whatever people…