[lord_jim]

The value of bitcoin, as with other currencies, is the value people believe it holds. More concretely, this would be the value of goods or services you can exchange it for today, and/or the future value you believe the currency will hold.

Your argument reminds me of a classic eBay seller problem: you can price your rare collectables however you want, but if no one is buying, they are worthless

[appleflaxen]

you are exactly right, but all the same criticisms apply to fiat.

the difference between fiat and bitcoin is that bitcoin cannot be arbitrarily manipulated by the state.

there is a fairly large, latent inflationary pressure on the dollar in the form of the national debt that has no credible prospect of reversing. the dollar has been a historical safe haven, but there is a reason that china is trying madly to diversify its foreign currency reserves.

[vkou]

The difference between fiat and bitcoin is that neither the IRS, nor my landlord, want to be paid in bitcoin.

There is a large, guaranteed demand for fiat, in the form of taxes. Everyone you transact with, at the end of the year, pays taxes.

There is no large demand for bitcoin as a currency. There is demand for bitcoin as a store of value. It's economy is largely speculative.

[thefalcon]

And if people are buying them for $5000 last month and $6000 this month...?