I think there will be normal currency fluctuations that people will call a crash, at some point.
Ask HN: Will Bitcoin crash?
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Re: Ask HN: Will Bitcoin crash?
#12The only reason why a price "correction" may happen is if those who own bitcoins - and large quantities at that - decide to dump them on the market at a price that is well below the current exchange rate.
But you have to ask yourself under what circumstances could that happen. Bitcoin cannot be "shorted" which is the main reason for that happening in the real world.
What if many people were to need to sell their bitcoins for example if a bank in a major country decided to call in all its loans. Again as we have seen with the Cyprus Crisis you'd be better off keeping your bitcoin rather than selling it.
It's hard to see how a crash could occur without there being a major external factor influencing the decision to sell large quantities of bitcoin.
Even if a government was to declare it illegal, there would be nothing they could do to enforce it. Wallets are private and encrypted, and the blockchain means that no government could grab your coin.
I think it's more than proved it's worth, I think the price can only go up because normal currency is so open to abuse by governments - see Cyprus again.
Lastly,one other factor that could affect the price, is damage to the internet in some form - restricting access or the ability to buy or sell.
Re: Ask HN: Will Bitcoin crash?
#13If a form of currency has intrinsic value as opposed to being fiat currency, it will fail. Bitcoin has intrinsic value.
No it doesn't. It's value is completely tied to the market, with very few exceptions, as evidenced by the USD charge for a good or service being relatively static, while the bitcoin price fluctuates, according to the market, to maintain parity.