To answer the heading of this thread as most dont know, bitcoin was never intended to be what its turned into, it was made to create a way to transfer money accross the internet in the form of credits (bitcoins) between two parties anonymously so both parties dont need to know each other, and the software needed to be secure so no one can tampor with it.
The main reason it become popular is of the back of silk road, its first real use. Where coins could be bought for cents, and the limited supply of coins just shows that the creator never intended this to go as large as it has.
As always, some finance guys saw that the price was always on the rise, so they did what finance guys do and they started to pump it to push the price up so they could make money out of it, then came the spin and B.S you hear now "block chain" "fiat currency" "fractol banking" "the new global dollar" "digital gold" "it will be just like the internet" "the next apple" "government cant controll it" "banks are scared of it".
And with all pump scams its always young and inexperianced people who get sucked in, thats why all bitcoin investors are in their 20's, have funny hair cuts, tattoos, tradies, truckies, single mums. Generally people who dont know any better when it comes to investing money as they never had any, but the internet and facebook has been a great platform to suck them in.
Reality is as the price and volume goes up, you need more people buying it to support those selling, the more people who get in the more people you have selling to cash in profits.. in contrast look at the volume X price 2 years ago and there was barly any money moving through it compared to now which is billions a day.
The only reason people buy it is to resell it for more money, with their buyer also planning to do the same, when you run out of new people entering this market the price will level off an drop. As the only reason people buy this is because they think they can sell it for more, if they stop thinking they can sell it for more then the buying stops and you will have how many billions of dollars worth of bitcoin people are holding onto that they will want to cash out back to dollars.
Another example how people who buy this have no idea is 20% of all purchases are done on credit cards, how many investors do you know buy stocks on credit card?
This is going to make the poor and stupid a lot poorer, but maybe a little smarter.
