The Bitcoin price has skyrocketed since the beginning of 2020. The price has gone up to 18,000 from mere 7,000. Whether this price swing is rational or irrational? How long do you think it will continue?
The problem is that people are investing in Bitcoin. The price of Bitcoin is not assigned to its cost price anymore but to the "supply and demand" formula. As long as the mentality of "investment" prevails, prices will fluctuate wildly.
Long term Bullish, short-term touch all-time high, and then correction
Only in hindsight we will be able to tell whether an "investment" in Bitcoin was rational or irrational. Interestingly, it was designed as a means of exchange but somehow turned into a store of value (although there are many who will disagree with the latter).
The current bullish trend is due to the fact people are getting into the bandwagon i.e., FOMO (Fear of Missing Out). Surely, we'll get a correction on its price.
Thanks.
Bitcoin is nothing more and nothing less than unlicensed gambling.
Details are in my book: Bitcoin: The Mother of all Scams. https://www.amazon.com/gp/product/B095NMLM2F
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