>1. It has proof-of-work, which gives it value "I burned a bunch of electricity and created a cryptographically provable magic token". There is no value here

>1. It has proof-of-work, which gives it value "I burned a bunch of electricity and created a cryptographically provable magic token". There is no value here beyond exchanges with the other bitcoin speculators around you. The value you describe is no different to the value of a pixel on the million dollar homepage. There will be a point where the emperor is revealed to have no clothes and when you try to extract actual value from the bitcoins that you are holding (i.e. sell them), you will find there is nobody who wants to buy. Although if you like, I'll trade for beanie babies. I've got rare ones, nobody else has these. They only made a few.