Bitcoins don't really do anything, do they? They're just inert bits. Of course there are computations you can run on them, but the output is not productive.
(Assuming infinite parallel universes, there's bound to be a universe where each bitcoin is the genetic code for an awe-inspiring dragon... But that's not where we live.)
The value in those bits is a cultural intangible: someone you trust tells you that there's a value beyond the practical level. This is like an invisible piece of metadata attached to the seemingly useless information.
It's the same reason why a vintage Gucci bag costs $2000 even though you can get a used leather bag for $5... Or why an Andy Warhol canvas with a dollar sign on it costs $20 million, and one painted by me can't be sold at any price.
I'm not sure what you mean by "Bitcoins don't really do anything". It's a decentralized digital currency with protection against double spending. Isn't that something?
(Assuming infinite parallel universes, there's bound to be a universe where each bitcoin is the genetic code for an awe-inspiring dragon... But that's not where we live.)
The value in those bits is a cultural intangible: someone you trust tells you that there's a value beyond the practical level. This is like an invisible piece of metadata attached to the seemingly useless information.
It's the same reason why a vintage Gucci bag costs $2000 even though you can get a used leather bag for $5... Or why an Andy Warhol canvas with a dollar sign on it costs $20 million, and one painted by me can't be sold at any price.