Bitcoin (BTC) is a perfect candidate for the reflexivity paradigm. Reflexivity was introduced by George Soros and states that a two-way feedback loop exist between price and fundamentals. Lower or higher prices can cause an investors perception of that asset to change which in turn starts to erode or increase the real economic value. When the force and magnitude of the price movements are abnormally large, like we have seen in BTC, the feedback loop starts to intensify. And you mix in a loose money situation, the chances of a mania become very high.
The idea that most people value BTC by a multiple of volume makes it an even greater candidate for this paradigm. Higher prices will create more volume (or is it more volume creating higher prices?) and this feedback loop will justify even higher prices and so on and on the loop goes until money drys up.
At current prices, this could be an interesting “swimming with the tide play”. Even if this mania doesn’t happen BTC offers real economic value for billions of people and should at least hold its value over a long period of time. A position should be taken here for the enterprising investor.