Everyone Who Believes In Bitcoin Should Try To Answer This Question
Geege Schuman stashed this in Bitcoin
Placing a floor on the value of bitcoins is… what, exactly?
Bitcoin bulls will usually respond with something like "cryptography" or "technology" or something like that, but these aren't really satisfying answers.
I have had and am continuing to have a dialogue with smart technologists who are very high on BitCoin — but when I try to get them to explain to me why BitCoin is a reliable store of value, they always seem to come back with explanations about how it’s a terrific medium of exchange. Even if I buy this (which I don’t, entirely), it doesn’t solve my problem. And I haven’t been able to get my correspondents to recognize that these are different questions.
Its value is as a medium of exchange.
Which has no intrinsic value since there are many alternatives.
The reason it is a good store of value is scarcity, just like gold. There is a limit to production of either.