I would appreciate it if someone could provide me with some insightful information.

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    Is gold tied to a currency? Why is it valuable?
    – Mike D
    Nov 1 '18 at 16:03

At first it was simply because a decent amount of people accepted the fact that it had a value and used it as a currency even if it was not backed by gold or oil like conventional currency (that still does not have intrinsic value), if you mean how it achieved such an insanely high value the answer is even simpler: speculation; people started buying the currency not to use it for transactions of goods but to simply make a profit from the fluctuating value, buying low and selling high.

  • I downvoted this, as it seems to be a purely speculative answer. For sure speculation is in the game, but that's not all. One could imagine, there are people in need for a monetary system, that is censorship free and provides privacy: e.g. ONGs working in countries with instable politics, would highly benefit from a monetary system like bitcoin. So boiling it down to speculation and "insanely" high value is an emotional perception, but probably not the right answer. Nov 4 '18 at 9:22
  • Speculation is how it reached this value, like it or not, I've seen the craze for bitcoins, people thinking they could jump on the bandwagon and simply wait until they made some profit, the only stable bitcoin trade I've witnessed firsthand was on the darknet, everyone else was either speculating or investing in them to have a little stockpile of goodness unreachable by the states. Just the way the value oscillates is proof of the massive speculation there's with virtual currencies and another proof is the dozen or so of ponzi schemes they started to capitalise on this.
    – Ursus
    Nov 5 '18 at 12:54