| Not all bitcoin usage is speculation but you are right, most of it's current value is probably reflected through speculation. Now there are two things that give bitcoin it's value: 1. Usage / Adoption 2. Speculation Right now, China seems to have trouble speculating in bitcoin. There is no question of China ever having any usage in the near future given their government's stance on bitcoin. Adoption of bitcoin has been on a steady rise over the past few months. No, apple or amazon are not yet accepting bitcoin but there are a growing number of people who are starting to see why they should accept it and why it's a viable payment method. It's impossible to say what it's value should be based on current adoption. The value right now could be $1 or $1000. My personal investment style is also biased towards low cost index funds.. I'm a Boglehead. However, Bitcoin is the only exception I have made so far. It's one of those rare moments that I personally see value in what the technology brings and can achieve. I'm invested, more in terms of building tools/startups around bitcoin than in just buying and speculating, though I'm guilty of the latter too. It's even more fun because I truly believe in it's potential. (gambling by comparison, is less fun ;)) |