I think that Bitcoin and other alt-coins do have some intrinsic value as a means of facilitating trade between people but I think that they (Bitcoins in particu

I think that Bitcoin and other alt-coins do have some intrinsic value as a means of facilitating trade between people but I think that they (Bitcoins in particular) are currently overvalued. If you think about tulips today, they are not expensive anymore but they do cost something and they still have some utility value as an ornament. The value of anything (regardless of whether it is rare or not) tends to be proportional to the cost of producing the thing. It doesn't cost much to produce a new cryptocurrency and because cryptocurrencies can be easily traded/converted between each other, they are essentially all the same. The tulips might come in many varieties, but they are all just tulips and their financial value is derived from a common utility attribute (which is ornamentation). Because of this, one should not value Bitcoin because of its perceived scarcity - Ultimately, it all comes down to utility value. Scarcity is not a utility.