Bitcoin surges after breaking through $7,000

Perhaps the question should be 'What's up with bitcoin purchasers'? If I have it right bitcoins are 'made' by miners using large quantities of electronic resources. The underlying value of that seems questionable. The counter argument would be that if someone is willing to pay, that creates value. That seems to be saying that it is all in the mind. A bit iffy to my mind. Some friends and I debated whether or not to get into them a year or so back, but decided not to. In the short term that could be regarded as a duff decision, but I sleep a bit better.
 
Frequent visitor said:
If I have it right bitcoins are 'made' by miners using large quantities of electronic resources. The underlying value of that seems questionable. The counter argument would be that if someone is willing to pay, that creates value.
Click to expand...
Mining is a way of maintaining the bitcoin blockchain - a mining computer puts in effort (consumes electricity) to prove to the network that its contribution to maintaining the blockchain is valid. For that it gets a reward in the form of a tiny amount of bitcoin and the supply increases by that tiny amount. However - the value of Bitcoin is pretty much entirely determined by the market (buyers and sellers).
 
saor said:
Mining is a way of maintaining the bitcoin blockchain - a mining computer puts in effort (consumes electricity) to prove to the network that its contribution to maintaining the blockchain is valid. For that it gets a reward in the form of a tiny amount of bitcoin and the supply increases by that tiny amount. However - the value of Bitcoin is pretty much entirely determined by the market (buyers and sellers).
Click to expand...

Thank you: it helps somewhat. It sounds like the headline values are another case of willing buyer, willing seller. It all seems a bit nebulous somehow to me: nothing to get hold of! Time will tell.
 
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