Quote:
Originally Posted by crwilli
What drives the market for Bitcoins? Is there any inherent value in the ‘bits’?
I just don’t get it.
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There is no inherent value in the bits just like there in no inherent value in the paper money that is not convertible into anything precious. The government does not back your money with anything other than a promise it will do the best it can to keep the country and the economy stable. It's good today but may be worth much less tomorrow. Dollar has lost 93% of it's value since 1913.... We call that inflation and it seems like that's the norm but when the Government and the Central Bank are in cahoots, is it really???
Even gold is speculative, there is demand and there is supply but the price of gold today may be very different tomorrow if say a huge deposit of it is found somewhere that is easily mineable. As far as bitcoin this article explains it pretty well.
https://www.cryptocoinsnews.com/affects-bitcoin-price/