This has become an interesting thread. Quite many sophisticated and reasonable arguments, that came together here. I am sure: Yes, the price for btc will drop again in some time. And yes, maybe we will even see a huge drop ... But nevertheless, my crucial opinion stays the same: 1) BTC will not disappear 2) The more time it is being traded in the markets, the more trusted it will become 3) The more volume it raises in its transactions, the more it will be attractive for high volume investments - and so for real investment Also, the price will get more stable. Maybe not in common years, but lets say after 10 years (?). BTC is a community currency, decentralized, kicked off by some dudes that believed in this architecture, and that said that a community coin, which is transparent and cannot be hacked or faked, is more worth than centralized fed money, at which you have absolutely no influence [money-politics]. BTC is giving the users back their sovereignity. Other than state-currencies. I think that this mixture is the real key of its success. Looking at all problems we have in economy, health (virus), politics, and others (money-printing, debt of states that has risen to astronomic figures, almost as if the governments practice the 'modern money theory') it is just totally understandable why such an iconic and famous e-coin has become that expensive. Good luck to you in future, take care.
Gamblers are the people in paper money with no hedge. The bubble is in interest rates. Financial repression usually used in war time has allowed too much money to be printed evidenced by the velocity of money declining. The natural rate of interest rates is 5%.
What hedge do you have for the bitcoin? And at what cost? I have friends who bought BTC several years ago. I compared their profits with mine as daytrader and till today I still beat them by far. Even with a natural rate of interest at 5%.
Bitcoin is like the mona lisa - its value is determined by the owners and fluctuates based on global liquidity. Why should a painting with "no utility" be "worth" $500M? because someone is willing to pay this much for it. Is it a confidence scheme? Maybe, but then again, maybe that person just really likes the painting and believes that it will be a good diversification for his other assets. Lots of things are valuable for no reason at all, such as baseball cards, collectibles, birkin bags, diamonds, gold, etc. they don't produce any cash flow and have little industrial use, but we can all agree that you would pay some money for them. Just because bitcoin is new doesn't disqualify it from being "valuable"...the two criterias for value for bitcoin and any non-cash flow producing assets are 1) recognition and 2) scarcity. Bitcoin has the pre-requisites...
Ma boys, creepto is a bit temperamental today, ain't it? Still not allowed to laugh. It has to drop more to make the laugh worthy. I guess that once you stop printing fake Tethers everting falls apart.
This is exactly what it is about. Schoolmarm's I told you so. Yet not a single one showing a short position. Even after the fact lol.