You are viewing a single comment's thread from:

RE: Is Bitcoin a Bubble?

in #bitcoin7 years ago

Of course. Its current price growth is spurred by previous price growth, not actual use. Its use cannot grow since its blocks are full and its fees are prohibitively high. Bitcoin maximalists have resorted to the preposterous argument of Bitcoin as a digital store of value when, by definition, that's not how stores of value work. You can't just proclaim yourself one, it's built on a history of purchasing power stability. People buying Bitcoin now have this contradictory thought in their head: "I'm going to buy this digital store of value, and it's going to make me rich." The reason for the purchase is a weak rationalization, the expectation of further price increases necessitates a bubble. Textbook irrational exuberance.