[laughfactory]

$0 demand? Are you kidding? If there was no demand then Bitcoin's price would be $0. It's not zero therefore demand is also not zero. This is basic economics. Come on, man.

No intrinsic value? How about how it is truly stored energy? It has a lot in common with gold. Just because it's digital doesn't make it's worthless. Lots of very valuable things are entirely digital these days.

[wpietri]

Read all the words, pal. We are not talking about "demand", we are talking about "intrinsic demand", by which we mean the non-currency need for the thing. The theory mr_win has about intrinsic value is not a bad one, but there is approximately $0 demand for the service he describes.

As an example, you can look at Bitcoin like digital Beanie Babies. The intrinsic value of a cute stuffed toy is, as any airport give shop can show you, a few bucks. The market price of Beanie Babies was for a time much higher due to limited issuance, energetic promotion, and a popular craze for them. The intrinsic demand did not change, so when the hype cycle ran out, price fell back toward intrinsic.

Bitcoin's intrinsic value is definitely not "stored energy", because you cannot get the energy back out. And it's not much like gold for reasons already described: gold has real, sustained intrinsic value. Bitcoin doesn't.