It's unstable. There's no barrier to entry. I could make a competing product called ZitCoin with a different inflation/deflation profile. At some point, it comes down to weird, fickle, and not especially meaningful brand effects. Then it's just speculation.
If you buy BitCoin, you're betting on the prestige of its being the first. Do people even know what the first fiat currency is? Or care?
People who sell at the top of BitCoin are going to make a lot of money, but for the long-term value, I'm betting on zero.
If you buy BitCoin, you're betting on the prestige of its being the first. Do people even know what the first fiat currency is? Or care?
People who sell at the top of BitCoin are going to make a lot of money, but for the long-term value, I'm betting on zero.