> If everybody converted their bitcoins to fiat currency now the exchange rate would collapse quickly.
You can say the same about literally any asset or currency. If everyone sells, and no one is buying, then yes, the value drops to 0.
You can say the same about literally any asset or currency. If everyone sells, and no one is buying, then yes, the value drops to 0.
It's related to the distinction between investing and speculating. Investing is based on whether the intrinsic value is below or above the price, while speculating is just based on the price.
Or even better: it's nearly impossible to do that with fiat currency, because there are checks and balances in place.
For example, the federal reserve and legislators can manipulate the interest rates and the deficit to encourage people to hold or sell their USD.