LibertyR, look at my posting history for the explanation. I've posted a Mises quote several times that explains the problem.
A prospective money needs intrinsic/industrial/use/etc value OUTSIDE of it's value as a medium of exchange before it can become money. The reason for this is that there needs to be some basis for its exchange value. Right now, the (pseudo)exchange value is based SOLELY on speculation, hence the ridiculous looking charts like this one.
Explanations of bitcoin's non-monetary value are just absurd, such as 'being a symbol of an anti-establishment viewpoint has value.' That just doesn't cut it.
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