Yes, assuming that others will pay for it. And perhaps an increasing number of productive individuals will. But that just pushes the question back one step. Why do those other people want to own Bitcoins? You see the infinite regress problem here?
(With fiat currency, there's a finite regress. It terminates with specific facts like historical government actions, gold, taxes.)
I don't speculate in Bitcoin. I just use it.
(I will investigate 'regression to the mean')
I'm sure there's a better answer, but that's the best I can muster with my current knowledge on the matter.
I think a better question is "given the rarity of bitcoin, why wouldn't people value it?"
Also, as for the confidence thing, bitcoin is no different than anything else in our economy. Our economy is built on confidence.
>Our economy is built on confidence. Yes, but not only that. Use of fiat currency is made legally compulsory.
Maybe Bitcoin-demanding ransomware plays a useful role in the BTC economy, as it gives people a negative/fear-based reason to obtain BTC.
Regarding drivers for using Bitcoin, consider that 99% of Bitcoin is now traded in CNY.[0] I doubt that ransomware plays a substantial role there.
By 'regression to the mean', I just meant that Bitcoin prices come to reflect average desirability. So even huge events like the pump/dump bubble that Mt Gox (or its infiltrator) created eventually damp out.
Right now, I gather that it's largely Chinese investors who are pushing Bitcoin prices up.