Oh, you misunderstand me. I think Bitcoin is a neo-libertarian utopian fantasy, based on the same thing all neo-libertarian philosophy relies, the "If only..."
"If only we had perfect information. If only we had perfect competition. If only we could have a free market that existed outside of government."
The problem is, markets are a function of government. There are no markets in nature. They only exist when there is someone to enforce contracts and guard transactions.
The entire philosophy is a scam perpetrated by the economic elite to draw off the energy of talented young people and make it easier to steal from them, while appealing to their egos. And the easiest people to manipulate via ego are talented young people, and those who see themselves that way.
Bitcoin is an undergrad economics project, writ large, and co-opted by criminals and the elite. I knew it would be co-opted eventually, just didn't think it would happen this quickly. Bitcoins will exist, in some form, until the willingness of those talented young people to part with their wealth is exhausted, which won't take long.
Do you have any idea how many Bitcoins were purchased between $1000 and $800? Wait until the people who bought them there realize that a 50% gain after a 50% loss puts you in the hole.
The other side of the coin is that the people (typically geek cyrptocurrency early adopters, NOT rich people) that sold those bitcoins that people bought between $1000 and $800 made a profit. You can't look only at the negative side of things.
There is risk around bitcoins yes, but if you buy smart and sell smart you can make a high rate of return that can justify the risk. The rate doesn't tumble for no reason at all. As with any stock or currency (etc) price varies with good and bad news reports and every bitcoin rate change that has happened so far has been precipitated by either good or bad news.
The big losers at this point are people who left their bitcoins in an exchange that then disappeared - lesson learned from this would be to not keep your bitcoins in an exchange or to spread them out across multiple storage locations (including paper and offline wallets).