[theklub]

I've said this before, my non-educated analysis of the situation... There is no reason for it not to go up..there is a finite amount and people are buying because its going up. Each time someone buys bitcoin it goes up because typically people are only going to sell above what they paid. It's not a stock, there isn't a huge company behind bitcoin trying to satisfy people. It's a store of value and a way of transferring value. The only reason it would go down is if the network gets hacked or the government makes laws against it or some pure panic situation (which has happened before). Other than that why would something like bitcoin drop? People stop being interested but with the price going up and the news coverage it advertises itself.

[Xixi]

It's trust: if people in general stop trusting Bitcoin its value will very rapidely converge to nil. Because there's nothing to back up its value, it will stay there and never recover, and will be remembered as the 21st century tulip bulb.

On the other hand take gold: as a metal, it has little practical use (compared to its availability, it's not that scarce), yet its value is still up there after several thousand years of use. Why? Because there's a consensus that it's worth something, and trust that this value will remain (and even go up) in case of war/disaster/etc. Bitcoin could be a new gold. That's highly hypothetical.

Don't invest what you cannot afford to lose.