>> The price has actually risen since the Gox bankruptcy.<<
But that’s exactly the problem. A legitimate currency doesn’t change in value by significant amounts from day to day. Did the dollar buy less after millions had their credit hacked recently via Target stores?
Bitcoin is a speculative investment, period. The fact that people are trying to use it as a currency is secondary. It’s no more a currency than a gold or silver ingot, both of which can be converted to dollars which are then used as currency, usually after paying a significant transaction cost to do so.
The difference between speculation in gold versus bitcoins is that the risk of holding bitcoins is far greater due to both its higher volatility and the difficulty of protecting it from theft by hackers everywhere.
If Bitcoin survives it will only be because governments step in with regulations to protect investors, which will result in most of its current supporters claiming it will have become just another “fiat money.”
“Did the dollar buy less after millions had their credit hacked recently via Target stores?”
No but target stock TGT did drop significantly.