<p>Because there is no guarantee that bitcoin will be in demand in the future.  Here's an example, in a recent Gawker article they put "(RIP)" when naming Bitcoin .. as if it had died. <a href="http://www.gizmodo.com.au/2011/09/is-digital-money-the-new-way-to-buy-drugs" rel="nofollow">http://www.gizmodo.com.au/2011/09/is-digital-money-the-new-way-to-buy-drugs</a></p>

<p>Of course, the existing $35 million or so valuation of the currency come from those speculating that the value of the currency will at some point in the future buy more than it will today.</p>

<p>Whether or not this will be a stratospheric rise nobody knows but it isn't unprecedented, just not typical nor expected by most.  But there are those, such as Rick Falvinge, who believe it.  Rick describes his thoughts here:</p>

<ul>
<li><a href="http://falkvinge.net/2011/06/16/bitcoins-four-drivers-part-one-unlawful-trade" rel="nofollow">http://falkvinge.net/2011/06/16/bitcoins-four-drivers-part-one-unlawful-trade</a></li>
<li><a href="http://falkvinge.net/2011/06/18/bitcoins-four-drivers-part-two-international-trade" rel="nofollow">http://falkvinge.net/2011/06/18/bitcoins-four-drivers-part-two-international-trade</a></li>
<li><a href="http://falkvinge.net/2011/07/03/bitcoins-four-drivers-part-3-merchant-trade" rel="nofollow">http://falkvinge.net/2011/07/03/bitcoins-four-drivers-part-3-merchant-trade</a></li>
<li><a href="http://falkvinge.net/2011/07/05/bitcoins-four-drivers-part-4-investment" rel="nofollow">http://falkvinge.net/2011/07/05/bitcoins-four-drivers-part-4-investment</a></li>
</ul>

CC BY-SA 3.0
2011-10-01T18:12:38.563Z
2011-10-02T15:31:20.857Z
2011-10-02T15:31:20.857Z
Stephen Gornick
<p>The value will definitely rise <em>if</em> Bitcoins are ever used widely. But there's no guarantee that will ever happen. Even if you think crytpo-currencies are awesome and that human beings will be using something like them for centuries, it' still entirely possible that it will not be Bitcoins but some similar crypto-currency.</p>

<p>It is likely that almost all of the current value of Bitcoins comes from speculation. In fact, the recent drop from around $11 to around $5 is likely due to people thinking the chances of Bitcoins becoming mainstream are lower.</p>

<p>The point is, widespread adoption of Bitcoin in the future is very far from a sure thing -- even if you think widespread adoption of crypto-currencies is a sure thing.</p>

CC BY-SA 3.0
2011-10-02T04:39:26.030Z
2011-10-02T04:39:26.030Z
David Schwartz
<p>I saw too many questions about bitcoin losing value.</p>

<p>But in my view, <a href="https://bitcoin.stackexchange.com/a/162/659">21 million</a> bitcoins is relatively less money (<em>ie.</em>, units) than other currencies. Why wouldn't Bitcoin's value rise simply due to supply/demand when it is used more widely?</p>

CC BY-SA 3.0
2011-10-01T16:19:22.233Z
You say "speculation" but it seems that you are asking if the value of bitcoins will rise simply due to supply/demand when it is used more widely. It's not clear what you are asking, but anyway it seems to invite speculative answers so I'm voting to close this.
D.H.
CC BY-SA 3.0
2011-10-01T16:25:09.860Z
@ D.H. - Sorry about this. I'm foreign. Already edited. Should you please remove the vote if now it's good? Oh, sure. It's good for you now?
H_7
CC BY-SA 3.0
2011-10-03T03:10:44.727Z
Could it be possible that you the verb in the title? :P
nanotube
CC BY-SA 3.0
2012-01-02T06:30:18.627Z
@D.H. - if this title was changed to "Why do some people believe Bitcoin's value could increase in the future", could this be reopened? I think the question with the new title is valid.
ripper234
CC BY-SA 3.0
2012-01-02T06:31:26.753Z
I actually downvoted it before, but I think it's important to explain why some people believe there's a chance for this. With the new title, the answers need not speculate, but just explain an objective fact - that some people believe some thing.
ripper234
CC BY-SA 3.0
2012-01-02T11:27:34.057Z
@ripper234: Your title would make it more objective, but it just seems like a _very_ basic question to me. Why do people believe that _anything_ will increase in value? Probably because there is something good about it, something that people want/need. It seems more like a question about what it is about Bitcoin that makes it better or more useful than other currencies. I think that we should just leave this closed. If we change the question too much the answers won't make sense anyway.
D.H.
<currencies><user-base><future-proof><value><speculation>
Could speculation some day rise bitcoin to the moon?
H_7
# Could speculation some day rise bitcoin to the moon?

(Asked by: username_0 on 2011-10-01)

I saw too many questions about bitcoin losing value.

But in my view, [21 million](https://bitcoin.stackexchange.com/a/162/659) bitcoins is relatively less money (*ie.*, units) than other currencies. Why wouldn't Bitcoin's value rise simply due to supply/demand when it is used more widely?

**Tags:** currencies, user-base, future-proof, value, speculation

> **Comments:**
> **username_1**: You say "speculation" but it seems that you are asking if the value of bitcoins will rise simply due to supply/demand when it is used more widely. It's not clear what you are asking, but anyway it seems to invite speculative answers so I'm voting to close this.  
> **username_0**: @ D.H. - Sorry about this. I'm foreign. Already edited. Should you please remove the vote if now it's good? Oh, sure. It's good for you now?  
> **username_2**: Could it be possible that you the verb in the title? :P  
> **username_3**: @D.H. - if this title was changed to "Why do some people believe Bitcoin's value could increase in the future", could this be reopened? I think the question with the new title is valid.  
> **username_3**: I actually downvoted it before, but I think it's important to explain why some people believe there's a chance for this. With the new title, the answers need not speculate, but just explain an objective fact - that some people believe some thing.  
> **username_1**: @username_3: Your title would make it more objective, but it just seems like a _very_ basic question to me. Why do people believe that _anything_ will increase in value? Probably because there is something good about it, something that people want/need. It seems more like a question about what it is about Bitcoin that makes it better or more useful than other currencies. I think that we should just leave this closed. If we change the question too much the answers won't make sense anyway.  

---

## 2 answers

### Answer by username_4 on 2011-10-01. Score: 5

Because there is no guarantee that bitcoin will be in demand in the future. Here's an example, in a recent Gawker article they put "(RIP)" when naming Bitcoin .. as if it had died. <http://www.gizmodo.com.au/2011/09/is-digital-money-the-new-way-to-buy-drugs>

Of course, the existing $35 million or so valuation of the currency come from those speculating that the value of the currency will at some point in the future buy more than it will today.

Whether or not this will be a stratospheric rise nobody knows but it isn't unprecedented, just not typical nor expected by most. But there are those, such as Rick Falvinge, who believe it. Rick describes his thoughts here:

* <http://falkvinge.net/2011/06/16/bitcoins-four-drivers-part-one-unlawful-trade>
* <http://falkvinge.net/2011/06/18/bitcoins-four-drivers-part-two-international-trade>
* <http://falkvinge.net/2011/07/03/bitcoins-four-drivers-part-3-merchant-trade>
* <http://falkvinge.net/2011/07/05/bitcoins-four-drivers-part-4-investment>


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### Answer by username_5 on 2011-10-02. Score: 4

The value will definitely rise *if* Bitcoins are ever used widely. But there's no guarantee that will ever happen. Even if you think crytpo-currencies are awesome and that human beings will be using something like them for centuries, it' still entirely possible that it will not be Bitcoins but some similar crypto-currency.

It is likely that almost all of the current value of Bitcoins comes from speculation. In fact, the recent drop from around $11 to around $5 is likely due to people thinking the chances of Bitcoins becoming mainstream are lower.

The point is, widespread adoption of Bitcoin in the future is very far from a sure thing -- even if you think widespread adoption of crypto-currencies is a sure thing.


---

