Understanding the value of Bitcoin means recognizing its properties as useful. Bitcoins value is of subjective nature. To understand what this means, we must dig deep. We need to know how Bitcoin is created and why its properties contribute to its price. Every average person sees that Bitcoin has no commodity that it is backed by. There is no centralized authority that can inflate money as they wish. Bitcoin derives its value because it is of enormous importance to the free market right now. So, let me answer this question at the end for you. First, we need to understand why Bitcoin works.