BTC has no intrinsic use as a commodity; its value is as much on faith as any fiat. Perhaps more so, since it lacks the force of a state to support it and defend its use as a currency.

Sure, some folks purchase narcotics and other folks send money to Venezuela with it, but the vast majority of BTC holdings are playing their part in a multi-level marketing scheme for tech nerds. Every schmo who pumps the price with their fractional purchases pads the value of the whales' holdings.