This is a very interesting quesion since when people sell bitcoin for USD, it means they trust USD more than bitcoin
So why do people trust in fiat money, which is created out of nothing by the central banks?
Because when you have $500 in cash, you know, that you can buy in one year a better notebook with that money than today. With 5BTC you don't know. People want to plan. They want stability.
Is it because they have no knowledge about money creation, or because their ignorance about the financial, or their respect/fear about the government enforcement?
No. Most people don't know, how the internet works. Do they have to know to use it? When you want to use USD or EUR, you just need to know, who wants them (everyone) and what can you buy with this money in the future. Nothing else matters. Even if in reality some midgets creates the dollars. It doesn't matter!
I'm a big fan of Bitcoin. I am on a university, I do not really have much money. But I bought 6BTC 1,5 month ago. I thought, I just have to risk something. I would shot me, if the price rises to many hundrets of EUR, and I did not buy some of them, when they were under 100 EUR.
I bought them for 70EUR/BTC. I sold them yesterday for 62. This is nearly a new notebook for me, when I have euros. When I have Bitcoins? Who knows what they worth in one year. 10REUR? 1000EUR?
Price is fallen since weeks. When the price just rises again for 10EUR or something, I will buy again.