Ideally, it should point to where your JAVA (version 8) is installed. What environment do you have? Try to locate it or "which" it or search it
Note: There's a feature to ship Atlassian products with its own JDK, I'm not sure if it was implemented in JIRA 7.
For the path, the JAVA_HOME should be set to the base installation of the whole Java installation. You've run "which java" which tells you what java runs according to your path, but that's not the installation. If you try "ls -l /bin/java", you'll find it's actually a symbolic link to somewhere else (and often, the target is also a symbolic link). You need to follow those to the end point, which will be something like /usr/share/jvm/oracle_java_1.8.16/bin/java. The base install is (usually) the directory above the bin, so for my example, you'd set it to /usr/share/jvm/oracle_java_1.8.16
But as Gabrielle says, if you've used the installer, it should have done all the work for you - java home being set by the scripts it's built for you!
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