The inherent value of any currency is based on these 5 factors. 1 scarcity - limit on supply, difficult to counterfeit 2 fungible - all coins are the same 3

The inherent value of any currency is based on these 5 factors. 1 scarcity - limit on supply, difficult to counterfeit 2 fungible - all coins are the same 3 divisibility - 1 / 100 millionth of a bitcoin is smallest unit. crypto is high divisible, an important feature if there is deflation. 4 durability - dollar bills get old and torn up. whereas, computers and drives crash and you can lose your private key. 5 transferability - cash and gold require physical transfer. banking: ACH, credit cards, wire transfers have fees. bitcoin: global internet transferability. transaction time should be less than 10 minutes. fees were low initially but have been going up due to network congestion. However they main thing that makes a currency valuable is willingness to exchange it for goods and services. That is the useful part about the bitcoin "bubble." It serves to increase adoption of it's usage. edit: formatting and note about losing keys mention in comment below