DrJLT Economics: Bitcoin Is the Perfect Bubble E004

Bitcoin has three features that make it the "perfect bubble":

1. Bitcoin has no intrinsic value. Unlike conventional bubbles that all must deal with the danger of revaluation, Bitcoin cannot be re-"valued".
2. Bitcoin has no history. Unlike conventional "assets", new stories can be continually made up to sell it.
3. Bitcoin has little regulation. Unlike most financial assets, it can be pumped and dumped in broad daylight in 19th-century fashion.

Still, Bitcoin is not the revolutionary asset that its proponents sell it as. It is a prototype of an interesting technology that has since became archaic for its original use case. Wall Street is no afraid of it, because Bitcoin challenges nothing; instead, it is easier for the big boys to make money off it, and they enjoy the process immensely.

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