When determining the value of a bitcoin, you must consider the nature of money. Gold, however, had the physical characteristics that made it a perfect medium of exchange, but it was inconvenient. A step up from coins in terms of convenience, paper money still requires manufacturing and storage, and it lacks the mobility provided by digital cash. Money's digital development has become more valuable due to this shift away from physical characteristics.

Digital currencies, such as Bitcoin and Ethereum, hold significant value in today's financial landscape due to several factors:

1. Decentralization: They operate on decentralized networks, reducing the need for intermediaries like banks, which can lower transaction costs and increase transaction speed.
2. Accessibility: Digital currencies offer financial services to unbanked populations, enabling greater financial inclusion.
3. Security: Utilizing blockchain technology, they provide secure and transparent transaction records, enhancing trust and reducing fraud.
4. Investment Potential: Cryptocurrencies have emerged as a new asset class, attracting investors seeking diversification and high returns, despite their volatility.
5. Technological Innovation: They foster advancements in financial technology (fintech), including smart contracts and decentralized finance (DeFi), which could transform traditional financial systems.

Overall, digital currencies are valuable for their potential to revolutionize finance, promote inclusivity, and drive technological innovation.