First, the fact that Bitcoin can be used as a type of currency cannot justify its value. For something to be useful as a type of currency, it must satisfy all the following conditions:
1. It must be fungible.
2. It must be easily divisible.
3. It must be easy to exchange.
4. It must be a long-term stored value.
Bitcoin does meet the first three conditions.
value is not found from those 4 things..
bitcoin is more then a currency..
people trade houses..
houses are not fungible. different houses are treated differently and not easily convertible. there is no like-for-like swap
houses are not divisible.
houses are not easy to exchange
so houses fail the first 3 rules too
..
bitcoin does condition 2.. there are 8 decimals. it can be easiliy divided 100,000,000 times
.
1btc is 1btc. there are mixers that swap 1btc for 1btc. every transaction 'destroy' a utxo of an amount and create a new utxo of another amount with a different owner. so it passes condition 1
its easy to exchange. every transaction on the blockchain is an exchange of ownership.
so it passes condition 3.
as for long term value
.. stop looking at the PRICE.
when you buy a house or gold. there are 2 lines you need to look at.. one is not easy to spot.
take the real estate market.
dont just look at the house price.. instead look at the houses in the region to compare.. (real estate buzzword: comps) .. and then evaluate the house price in comparison to see if the PRICE is good and near VALUE or if its being sold at a premium
a house price is not the value. the regions 'comps' is the value and although you might buy a house above 'comps'(value) the store of value still exists via a underlying value everyone in the region refuses to sell below.
(the bottom line cheapest 'comps')
bitcoin has a 'comp' too
take the lowest cost to mine on the planet. the cost no one else can acquire bitcoin for..
thats the 'comp' value.
then take the periodic ATL (the all time LOW.. not the high.. the LOW) of every say 2-3 years (normally 4 year cycle)
and thats the value line below the price.
you can use this line to then evaluate if the PRICE is near VALUE or if its at premium
..
if you think bitcoin has no value then you must think house prices have no value.
bitcoin is an asset. its more then a traded property. it has function it has utility it has features that make it have use.