Prices are determined based on human expectations!
The intrinsic value between Bitcoin and Van Gogh's paintings - tangible material
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
Intangible 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 person A look at the painting and told B that this is a great picture, the B hear so want to own it and agreed to buy for $ 1,000 USD. 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.
• Bitcoin is similar
Initially Bitcoin price = 0, after a period of valuation by the owners and owners of it, the value has increased to $ 20,000.
So, The price is 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?
Maybe Bitcoin bubble broke down as it kept rising uncontrollably. But very lucky for Bitcoin because it was a few financial tycoons for it appear on the US stock market. A great challengefor lifesaving Bitcoin.
CBOE in 2017 made a comeback for Bitcoin?
Why Cboe Global Markets Inc. Any way to complete the Bitcoin legalization process under the guise of "Bitcoin Future"? And put a lot of binding rules for investors when Bitcoin on the floor?
This move is actually helping Bitcoin curb price stability, anti price volatility is too large Bitcoin . This proves that some financial institutions are wishing to keep Bitcoin value , despite all the unforeseen risks.
When the listing price of Bitcoin On a reputable stock market X usd, the black market will certainly want to increase the price to XXXX usd in the transaction, will also encounter 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 Bitcoin Are there too many risks 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. By the above analysis the price of it is The price of "Wanted" . How to know the human desire to stop? ... but here are millions of people!
The size of Dot-com is the United States. Bitcoin is the world?
Back to the Dot-com case. The damage is mostly in the US market. Stocks are exaggerated and market capitalization largely from US investors.
Still Bitcoin so what? Market capitalization of Bitcoin Today is the capitalization of so 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.
Bubble burst scenarios Bitcoin?
Currently, owns 1 Satoshi Bitcoin It is easier than running to market to buy a bowl of pho.
With such market capitalization, with so many users scattered, it is really hard to Bitcoin bubble can blast a blast, quickly and quickly. It will burn, fluttering day by day, until desire ceases.It's hard to guess.
There is only one prospect for the bubble to explode. These are: The government began to participate in the game bubble burst. But this is unlikely to happen, or it will take a long time to happen.
The the followers of Bitcoin Can sleep peace a few more years ... Maybe sometime already "Go to the moon" ... not yet "Go to hell".