Some say it is going to the moon, other say to the earth!
but surely, as a new asset class, it is neither. At the moment, hard to value as main street investors are still getting their heads round it and because a cryptographic key is hard to put a price on there is no market guide. This explains the volatility. And unlike most conventional currencies, it cannot be supported by a government's ability to raise taxes or to sell natural resources. But then, many developing world currencies fit this bill. And the Euro certainly does not.
But at the same time, bitcoin is NOT a ponzi. The technology underpinning it is ultra-serious . And whenever I hear about tulip bulbs, I am thinking that the speaker is either massively biased or else on the cool-aid.
So what is it worth. Ultimately it is worth what people are prepared to pay for it. And surely the ways to use bitcoin are increasing. Even during the current downturn, serious money is being put in to bitcoin technology eg cash machines. And communities that can use bitcoin are emerging regularly. For example, high value international transactions- ships laden with grain or rice, old masters art or exclusive wines markets where buyers and sellers are global and there are tax advantages to staying out of conventional currencies. And while companies might resist paying in bitcoin if they believe it will go up in value, they will happily put accounts payable if accounts receivable and therefore profits are also in bitcoin.
Hardly a week goes by without new communities of potential users popping up!