The Bitcoin Bubble and the Future of Currency
> "A few days ago, the value of all the bitcoins in the world blew past $1 billion for the first time ever"Can somebody help me understand something? Might be very basic, and perhaps I should understand this already, but...How is it possible for the "value of all the bitcoins in the world" to be anything, in truth?I understand that this comes from saying "1 BTC is selling on average for $X USD, and there are X Bitcoins in circulation, therefore the total market size is $1BN"But... knowing that they are not underwritten or backed, surely they're only "worth" what somebody will pay for them. Nobody would pay $1BN for all of them, because that would render them all worthless.Even if 10% of them were sold in one day, surely the value would drop precipitously, therefore slashing the total "value" of all the bitcoins to maybe half or a tenth of its current estimation.So I ask again, how can the "value of all the bitcoins in the world" be any figure, let alone $1BN?