You might here this argument a lot that there is no actual value in bitcoin or that it is not backed by anything. People will say that the price is only worth something because people agree it is worth something and that nothing of "value" is actually there. Although it is true that the worth of the coin is what people are willing to pay for it there is something very valuable that is backing the coin that people do not consider and that is the network itself. This is a global network where coins, which represent a form of money or assets, that can be sent instantly with low fees to anyone anywhere with a connection. This network is secure and backed with a large number of miners around the world. This is a network that runs 24/7. If a company, like Paypal, offers this service and network there is value, so why would it not be the same for Bitcoin. For Ethereum this is a network you are building dapps on. The network, itself, has a lot of value.
Why Is Paypal Worth something?
Being able to send money digitally is a service that costs a lot to run. Not only does Paypal let you send money but you can also store your funds there. This is another service which costs a lot of money to run. With bitcoin you can store your funds in your own wallet and because of the nodes that are being run around the world you can send the bitcoin when you choose to.
Why Tulips Can't Compare To Bitcoin
Another fallacy that got through around the last bull run, though less so this bull run, is the tulip mania story. The price of tulips went crazy high then crashed because there was no long term values in tulips (obviously). This story represents how mania can take over and the price of anything can explode if a bunch of people rush in to buy it and that in it by itself does not mean the item has value. Once the bubble pops the price goes to zero. And it is true that there have been and will be lots of bubbles in crypto with hype cycles that come and go, but since there is long term value in the network, bitcoin will not be a passing fad. As long as the network is running the value of the coin is still there. You can send a bitcoin when it is worth $10,000 and send a bitcoin when it is worth $100,000. The network works and and as long as it does there is a value behind the price.
Cash Is Expensive
Another way to look at it is to consider how expensive cash is. You need to print it and make sure it can't be counterfeited. There is the transport cost and the cost to store it. The system of money has a value that consists of the resources used to make the money and track the money. These costs are cut significant when it comes to bitcoin. The system is also more secure and transparent. This is a network of value that can be used instead of paper money or a digital network to send money. If the other networks have value why wouldn't bitcoin?
The dapps on the network and the network itself are the value. What that value is will depend on what people are willing to pay for it, but there is a product and service here that, in a digital age, is very valuable.