Prices are determined based on human expectations!
The intrinsic value between Bitcoin and Van Gogh's paintings - material tangible
The intrinsic value of Bitcoin = 0
The intrinsic value of Van Gogh's paintings = Paper, paint
The intangible value of Bitcoin and Van Gogh's paintings
Invisible value of Bitcoin = The intrinsic value of a piece of code in a computer programmer = Power + The power of the programmer + Gray matter
Van Gogh's Painting = Gray matter + Labor hours
Bitcoin's prices and Van Gogh's paintings
Van Gogh's painting starts at $ 100
A man looks through the picture and tells the B that this is a great picture, so the B would like to own it and agree to buy it for $ 1,000. After that, the B brought paintings for friends to admire, among them some painters attended.
The merchant claims that this is a unique painting. It should be worth more than that. The merchant peeped at the painting and said, it seems that this picture contained some strange things. It must be a secret that the artist wants to send.
After days of rumors spreading far into Persia, everyone wants to own the painting. People say it contains a code that can open a lot of treasure. So people B agreed to sell it for $ 5,000 when the price fell. Then C sells it to a Saudi Grand Master for $ 10,000. After that, a series of information, three merchants in China come seeking auction to buy paintings and think that will sell higher prices for those who want to find mystery magazine.
Back to the Bitcoin story is similar.
Initially Bitcoin had a price of $ 0.20, after a period of valuation by the owners and owners who wanted it, the value was increased to $ 20,000.
Thus, prices are no longer determined by the intrinsic value of tangible or intangible material (van Gogh, Bitcoin) that is priced according to the desires of human desires.
Prices are determined by demand along with desire, which breaks down any pricing principle.
Did Bitcoin break the tech bubble like DotA com in the US in the late 1990s - early 2000?
The Bitcoin bubble may have burst as it continues to rise uncontrollably. But it was fortunate for Bitcoin because it was a few financial tycoons for it to appear on the US stock market. A great save for Bitcoin.
Why Cboe Global Markets Inc. Any way to complete the Bitcoin legalization process under the guise of "Bitcoin Future"? And made a lot of laws binding for investors when Bitcoin to the floor?
This move is actually helping Bitcoin to keep prices steady, against the volatility of Bitcoin. This proves that some financial institutions are seeking to retain Bitcoin value, despite all the unforeseen risks.
When Bitcoin's listing price on a reputable stock exchange is X usd, then the black market will want to raise that price to XXXX usd in the transaction, will also have many difficulties. Because investors believe in the right things, they will not buy at the high prices of the "black market".
When the amplitude fluctuations are too large, CME floor will stop trading for a specified period ... So investors will also stop the transaction. So the US stock market want to master the game valuation.
Why does Bitcoin have so much risk that tycoons still want to manipulate? Because these risks are not known to ever happen. They can not determine the flow of Bitcoin tomorrow will go where to go. Because, as discussed above, its price is the price of "wanting". How to know the human desire to stop? ... here are millions of people!
Back to Dot-com case. The damage is mostly in the US market. Stocks are exaggerated and market capitalization largely from US investors.
What about Bitcoin? Bitcoin's market capitalization today is capitalized on by many citizens around the world. From the United States to the Middle East to Africa, across Asia, Australia to the tiny island nations that many people do not know.
Now it is easier and faster to own a Bitcoin Satoshi than to buy a bowl of Pho.
With such a market capitalization, it is hard for the Bitcoin bubble to burst a fast, fast bounce ... It will burn and flutter every day. every day, ... until the desire stops. It's hard to guess.
There is only one prospect for a bubble to explode as fast as possible: Governments begin to engage in ballooning games. But this is unlikely to happen, or it will take a long time to happen.
Bitcoin believers can sleep peacefully for a few more years ... Maybe now it was "go to the moon" ... not "go to hell".