What gives Bitcoin its value?
Supply and demand?
Surely, as more merchants accept Bitcoin, more bitcoin gets sold for $$ driving the price down. The lower the price, the more people will panic and sell their BTC or trade it for goods, thus reinforcing the cycle.
I am getting to the point now where I am so tempted to sell my own BTC. I don't normally waver on things like this, I believed Bitcoin had a bright future, but my belief is shaken now.
I can't see anything in the near future that will increase the demand side of the equation....
Don't forget that in order to buy something with bitcoins, you have to buy the bitcoins, driving the price up.
I don't see anything in the near term either, but in the long term, Bitcoin looks good.
In the long term, the Blockchain looks good, Bitcoins aren't really necessary
Bitcoin network gives us the ability to send any amount of money anywhere on the planet, instantly, for no fee, without having to trust a third person. That's the value of bitcoin, and people are willing to pay a price for that value (ability).
http://www.notbeinggoverned.com/gave-bitcoin-value/Yes, bitcoins must be bought but they are then sold at the other end...