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Nepotist · 4304 days ago · link · · parent · post: Bitcoin loses 44% of its value in one day. Dropping from over $250 to around $150
Gold had value even before we had real-world uses for it. The value was in the rarity of it. Bitcoin, while admittedly just a bunch of bits on a storage drive, has a limited supply of 21 million coins. Its rarity is even more secure than gold is, because we know exactly what the total supply is and will be. It's also very valuable as a transaction mechanism. You can transfer bitcoins very quickly with extremely low transaction fees. The bitcoin "miners" are supporting and verifying the network while they mine their bitcoins. Now there are ASICs in existence designed solely to mine bitcoins, and there will always be the transaction fees to earn. If nothing else, it's an interesting experiment.