DD Support Board and Research Team

[DragonBear]

It sounds like justifying an investment.

One article said it best:

As we’ve discussed, there is no way to value bitcoin. There is no intrinsic value. To this point, it has been bought by people purely on the expectation that someone will pay them more for it, at some point. So it's speculation on human psychology.

To that extent it sounds very close to the Microcrap stock trading game: A group of pumpers on IHUB buy a Microcrap stock with no intrinsic value. Then convince someone else to buy it for more from them. With the pump posts about the stock providing the human psychology for speculating about the stock value.

The speculative valuation of Bitcoin has been compared to the tulip mania bubble. The difference is the tulip mania bubble never had the virtual background of today's electronic trading. Just read some anal-yst predicting Bitcoin to $50K by EOY 2018, and $400K-500K by EOY 2023. Naturally the author admits to being Long in COIN.

So it appears the manic speculation has an orchestra of pump theme music. What deflates the Bitcoin bubble? The recent news it will be traded on an exchange that will allow Shorting via options is a huge step. Some Hedgies will purchase Puts, and then crank up the negative news. China forbidding commodity trades involving Bitcoin is another wall against the speculation. Where China increasingly controls how the world of commodity buying-selling is controlled. The bubble will pop. Like all bubbles the popping will be unpleasant for those who bought at the top. I wonder what all the traditional gold bugs think about this virtual rival to their beloved gold holdings?