No Bitcoin speculation here. Just plain utility.
In response to an article about bitcoin speculation located at http://willowstreetproject.com/bitcoin-speculation/ .
Bitcoin is volatile:
At the end of the BTC inflation era it should be more stable than FIAT. The issues is not volatility but unpredictable volatility. Once BTC gets higher penetration voloatility should go down
Mechanism for Price Stability
The feds's inflationary policies resulted in a 95% erosion of value over < 50 years. I wouldn't use them as an example. In addition their primary deflation focus means that there's rarely any clearing of the brush esp among poorly perfming banks. That's how we got "too big to fail"
Bitcoin and Source of Value
First, there's no such things as "intrinsic" value, only utility value. And the utility of bitcoin is simple. The ability to send money across the world, without recourse (feature not bug), without 3rd party approval or mediation (also feature not bug), is hugely valuable. If you don't believe me you only need to ask the Cypriots, Greeks and Venezuellans.
The only reason we need to convert back to fiat is because the entire supply chain doens't support BTC yet. At some point it will all be priced in BTC and the fiat conversion wouldn't be neccesary.
Another huge utility, hinted at a paragraph above is the hedge against inflation. This is the answer to "Demand comes from people wanting to hold bitcoin, not just use it for payments." We hold it to not have the value of FIAT be devalued by arbitrarty rulers and their rules.
Well i feel that is why we need other alt coin. Bitcoin is a technology few years ago, and they will find more problems along the way to fully replace the flow currency. But with the technology advancing everyday , who knowes what next really.