Bitcoin properties are almost the same as precious metals, making it much more money-like than a fiat currency.
Actually, Bitcoin lacks one of the most key attributes of precious metals: precious metals have inherent value. Even if gold isn't useful as a medium of exchange, gold is still useful and has value because it has practical applications due to its high conductivity and corrosion resistance. Although gold's value is highly inflated due to speculation, gold still has a "minimum value" due to its utility in the area of electronics. If everyone one day decided "gold investment is stupid" and began dumping it, there would still be demand for gold due to the electronics market. Ditto for silver and platinum. These metals have value because you can do things with them. There will always be demand for these things, just as there will always be demand for iron, copper, and other non-precious metals.
Bitcoin is like currency in that it only has value because a group of people have collectively decided that it has value. Bitcoin's value is based on rarity, and the only thing that makes it different from traditional currency is that its rarity is guaranteed algorithmically, rather than by a centralized government.
Actually, Bitcoin lacks one of the most key attributes of precious metals: precious metals have inherent value. Even if gold isn't useful as a medium of exchange, gold is still useful and has value because it has practical applications due to its high conductivity and corrosion resistance. Although gold's value is highly inflated due to speculation, gold still has a "minimum value" due to its utility in the area of electronics. If everyone one day decided "gold investment is stupid" and began dumping it, there would still be demand for gold due to the electronics market. Ditto for silver and platinum. These metals have value because you can do things with them. There will always be demand for these things, just as there will always be demand for iron, copper, and other non-precious metals.
Bitcoin is like currency in that it only has value because a group of people have collectively decided that it has value. Bitcoin's value is based on rarity, and the only thing that makes it different from traditional currency is that its rarity is guaranteed algorithmically, rather than by a centralized government.