Re:Big Ideas 2021 [pdf]
by Robotbeat on Tuesday January 26, 2021 @08:45PM
(#25923286)
The best argument for Bitcoin growing in value is it's a social phenomenon that will continue for some indeterminate time. Over half a trillion dollars buys a LOT of people becoming intellectually invested in Bitcoin. Almost like a religion, but it's like money so even better.
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So, it's an irrational bubble. Got it.
The market cap is very misleading, as it values the entire pie based on what someone paid for the last slice. Much less than half a trillion has gone into BTC.
Absolutely. But people THINK they have half a trillion in Bitcoin “assets,” so that impacts their behavior. They will engage in all sorts of motivated reasoning to justify why it makes sense, to protect that and grow its a perceived value. And don’t underestimate the power of that, collectively.