Value of Cryptocurrency

I believe Cryptocurrency's value is represented in the exchanges. If people are willing to exchange them with fiat currency, their value will increase. When value increases, it incentivize more people to look for Cryptocurrency, eg. through mining, which in turns builds up a stronger network. As more and more people appreciate the value and adopt these Cryptocurrency, the value continues to grow.

If there comes a day where Cryptocurrency cannot be exchanged for fiat currency, the use for Cryptocurrency may then be limited because lesser business will then find it a viable means for receiving payments. Only those who value anonymity and "cheaper" fees may still hold hopes of it. Cheaper in this context would then subjective. If it cannot be converted to fiat, lower fees does not mean that the transaction is cheaper because the savings cannot be converted into real world uses.

Therefore, I truly believe that the current value of Cryptocurrency is derived in the hopes that Cryptocurrency would be widely adopted in the near future for the benefits that Blockchain technology brings, ie. speed, less possible to be controlled by a central body and in some instances, anonymity.