[vec]

I don't dispute that a Bitcoin is a real, discrete thing. What I'm arguing is that it's a self-contained thing. The price of a Bitcoin is not anchored to anything outside the Bitcoin ecosystem.

With other assets, there's a clear causal arrow leading from outside the system back in. If Google the company performs better, Google the stock will overwhelmingly tend to perform better. If Google the company folds, Google the stock will overwhelmingly tend toward being worthless. The asset is a proxy for something that isn't the asset.

Bitcoin doesn't appear to work the same way. There's no obvious not-Bitcoin that demand for Bitcoin is a function of. It's a proxy for itself, after a fashion. That doesn't mean it has no value, but it does feel uncomfortably self-referential when compared to almost any traditional asset class.

[pixie_]

Crypto's value is derived from its usefulness as a currency. It has many advantages over current fiat systems. You can expect if it's practical adoption expands then it's value will go up.