Article: Bitcoin-Money-of-the-Future-or-OldFashioned-Bubble

[Mike4Freedom]

https://mises.org/daily/6401/Bitcoin-Money-of-the-Future-or-OldFashioned-Bubble

Overall I do agree with the bubble part of the article. All in all the good thing that I see with bitcoin and other digital currencies is the fact that its private individuals doing it and not governments.

[EBounding]

No one has any response to this article? :confused:

[Zippyjuan]

I note this part. Based on bitcoin discussions here, the reason most are buying them is because they expect the price to be higher in the future so they can make money off it.


The question left to be answered is whether or not bitcoin is once again taking the shape of a bubble. The answer is yes. There is present a reflexive pattern of people buying because prices are rising, and prices rising because people are buying. The myopic are extrapolating the price trend of the past four months, which they deem is normal, and in so doing they exacerbate it to the upside, thus attracting even greater fools. The inflection point will come when the continuity of bullish thought is broken.