The comparison with the stock market is irrelevant. As for any currency, bitcoin value has to do with the trust people put in, without the interference of a central bank to play with the interest rates on deposits. Contrary to gold, it has no other use than to store value and transfer it, i.e. no bitcoin jewel or electronic components. It can be easily divided and transferred, with no interference. It might not be as efficient to clear transactions as your credit card, but it is a great concept, and more than in theory. However the barrier to entry is still high, and there are still risky dimensions, such as exchanges, theft of private key, poor understanding. Crypto currencies are there to stay, that real questions is which one(s). Limited supply combined with broader adoptions does mean higher value, but then again, a lot of volatility to expect.
Slashdot Mirror
The comparison with the stock market is irrelevant. As for any currency, bitcoin value has to do with the trust people put in, without the interference of a central bank to play with the interest rates on deposits. Contrary to gold, it has no other use than to store value and transfer it, i.e. no bitcoin jewel or electronic components. It can be easily divided and transferred, with no interference. It might not be as efficient to clear transactions as your credit card, but it is a great concept, and more than in theory. However the barrier to entry is still high, and there are still risky dimensions, such as exchanges, theft of private key, poor understanding. Crypto currencies are there to stay, that real questions is which one(s). Limited supply combined with broader adoptions does mean higher value, but then again, a lot of volatility to expect.