Even if a significant portion of bitcoins value is based off of short term volatility, this behavior is actual unsustainable as it is too much like a ponzi scheme in which the scheme only works if people are continuously participating in this activity with new money. When major consecutive events happen (Korea FUDD, China banning bitcoin etc...) you have what happens here in which there is a huge shortage of people wanting to come into the market. The difference between this and the bubble popping phenomenon is that the bubble popping will be much worse.
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