Point #1 is the most important one and the answer given is bogus. "Bitcoin is still used as a medium of exchange". So were Confederate dollars, so were Weimar

Point #1 is the most important one and the answer given is bogus. "Bitcoin is still used as a medium of exchange". So were Confederate dollars, so were Weimar Reichmarks, or Iraqi Dinars. Currencies stop being currencies when people perceive there is a fair chance they might lose a lot of value within a year's time. Bitcoin is worth half what it was five month's ago. Then he quotes from Marc Andreessen: "It's not as much that the Bitcoin currency has some arbitrary value and then people are trading with it; it’s more that people can trade with Bitcoin (anywhere, everywhere, with no fraud and no or very low fees) and as a result it has value." This shows that Andreessen has no concept of what value is (I'll give him the benefit of the doubt and assume he's not being disingenuous). It's also not a falsifiable argument. People trade with Bitcoin (most importantly trade significant paper currency for Bitcoins) so he says it has value. If people stop doing that, then by his definition it has no value. "It's valuable because it's valuable". I know precious metals will retain their value over the long term. Bitcoin certainly will not. Only commodities have value, from a widget in a factory, to a bucket of water pulled up from a backyard well. It is why a precious metal such as gold has been a currency for thousands of years. Gold had value 3000 years ago, gold has value today, gold will have value a century from now. It is why the US keeps hundreds of billions of dollars worth of gold in Fort Knox. This is a giant Ponzi scheme. If anything is a sign of a bubble, all the VC's talking up this bogus Bitcoin Ponzi scheme is. Notice nothing they say is falsifiable either - a solid statement is me saying plain as day that Bitcoin will be worthless. They are just making vague assertions about how something is valuable if it's perceived as valuable, which at the end of the day means absolutely nothing. That posts like this skeptical of the Bitcoin Ponzi bubble are downvoted into oblivion on HN are yet another sign of the irrationality of this bubble. If I said I thought Google stock will stagnate and go down, my post would not be downvoted (actually this is just a theoretical example, I have no crystal ball on it, but I believe Google stock will continue to rise and do well). That this post surely will be downvoted to oblivion is just another sign of how the whole thing is a scam. The damned things have no value, and all that it will mean in the end is a hard lesson for all the suckers who shell out real money for worthless backordered ASIC miners and fat Bitcoin wallets.