The current peak in bitcoin also looks exactly like an exponential blow off peak as people invest entirely on the expectation of future price rises. The way people are talking about it and the behavior of the price on the chart looks exactly like NASDAQ pre-2000. I'd almost suggest shorting it, but "markets can remain irrational longer than you can remain solvent". Since there's nothing tangable at all about BTC (it's not like its a corporate stock with an actual cashflow and capital behind it) I don't see where the floor is. And since BTC mining is starting to use s noticeable fraction of the world's power consumption at some point the music is going to stop and all the miners will head for the exits because the marginal profit isn't there.

I'm not sure I agree with Stiglitz that it should be outlawed since I'm uncomfortable with protecting people from their own stupidity, but I understand the analysis he's doing to conclude that.

Well there is a cap on how much will exist so with even a small amount of additional demand for it each year it should continue to go up in value. Thats not to say the value can't go up so much that it would take approximately forever to get back there once it crashed.

I am not sure why you think the demand should increase year over year. Also, at some point people are not going to run full nodes and it just dies.