BITCOIN BREAKS $1000 DOLLARS FOR THE FIRST TIME!

Bitcoin

Bitcoin is not "fiat" as it does not derive its value by government decree. It is basically a free market currency, trading at the value that people believe its worth (justified or not). Sure, Bitcoin has no intrinsic value, but then again, neither does gold or silver. Valuation is completely subjective.

If you were thirsty in the middle of the desert and had an ounce of gold and I had a bottle of water, you'd gladly trade. At that moment, the water would have a higher value to you than your shiny coin. This didn't really sink in for me until Bitcoin. Does it have value? It sure does to me, being able to instantly trade across the globe and take my wealth (purchasing power) across borders effortlessly. When enough businesses are selling products and services for Bitcoin, I will have no limit like I do with a credit card and will instead have full autonomy over my wealth.

Should you be cautious? Absolutely.
Bitcoin is an emerging market and is therefore quite high-risk. The trade price could go to zero or it could go much, much higher. Should you write it off altogether without doing any research about it? I would not recommend it.