Speaking as someone who knows a lot about economics, I think PT Barnum put it best...[1]
Economics is very clear in predicting how this will end up. Bitcoins have no intrinsic value and therefore the long-term price will be precisely zero. Each generation has its tulips [2]; each generation claims that the persistence in tulip price means that there is permanent intrinsic value; each generation is disappointed [3].
The only thing interesting about bitcoins is that this provides an opportunity to watch a bubble: observe the justifications people make, observe how nay-sayers appear to be wrong, and watch the progression.
Economics is very clear in predicting how this will end up. Bitcoins have no intrinsic value and therefore the long-term price will be precisely zero. Each generation has its tulips [2]; each generation claims that the persistence in tulip price means that there is permanent intrinsic value; each generation is disappointed [3].
The only thing interesting about bitcoins is that this provides an opportunity to watch a bubble: observe the justifications people make, observe how nay-sayers appear to be wrong, and watch the progression.
[1] http://en.wikipedia.org/wiki/There%27s_a_sucker_born_every_m...
[2] http://en.wikipedia.org/wiki/Tulip_mania
[3] http://en.wikipedia.org/wiki/Extraordinary_Popular_Delusions...