The fundamental value of bitcoin is the float of all the transactions people want to engage in using the currency. Imagine that nobody speculated on the value o

The fundamental value of bitcoin is the float of all the transactions people want to engage in using the currency. Imagine that nobody speculated on the value of bitcoin, and people only entered into positions for the purpose of buying something from Silk Road. The sum of all of those positions would be the fundamental net market value of bitcoin. If it continues to become more useful as a payment network, the value will grow and the volatility will go down.