Well, the concept-question has been around for quite a while.
What gives the diamond it's value?
Yeah, size, quality, rarity and so on. But if you consider that industrial diamonds took the actual 'use' of them out of the equation, a diamond is worth
$X per Y ct (carat) because someone says it is. The stuff isn't physically rare, really, and is only made so because of it's value not it's occurrence.
So ... like any currency Bitcoin is only worth as much as some blokes say it is. These blokes, I suspect, who own a lot of Bitcoin.
Which is my basic distrust of such nonsense. Currency is used instead of material exchange. £1 will buy you, say, a loaf of bread. How that £1 is circulated around, multiplied, lost, stored or given means nothing when ... you want to buy a loaf of bread. High finance, exchange rates and currency manipulation is all very well, existent and interesting (at times). We have multimillionaires who are 'worth' £Zbn. They're sitting on that money, they're exerting that value in influence. Then they die. Pffft. It's all credit, theoretical money.
I honestly feel that sometimes the unbelievable figures mentioned in wealth blind us to reality. We still need to pay some shopkeeper £1 to get a loaf of bread to eat. Bitcoin is popular, not for it's concept but for the dream, the words about earning £££££ ... in theoretical money. Like gambling in a casino, it all hinges on cashing in the chips.
Oh, and the idiots who lost money by forgetting their password? Try actually, physically, writing it down on a scrap of paper and pinning it to a noticeboard. The chances of a cyber-criminal being able to 'see' it is minimal. Or is this too low tech to work?