It’s true that prices reflect the difference between supply and demand. There is a limited number of bitcoins, and there is a great demand for them, so the price is shooting up. However, what these proponents of bitcoin seem to be missing is the reason for the demand.
It’s clear that the most significant reason, by far, for the massively increasing demand for bitcoin is that people want to own it because they think that it will go up in price. They think it will go up in price because increasing numbers of people are going to want to buy it. The reason that they think that more people will want to buy it is that those people are going to believe that it will go up in price. This is a self-fulfilling prophesy.
This is also a demonstration of the standard operation of a bubble. It looks like a Ponzi scheme or a pyramid scheme. If I buy bitcoin today, it will be more valuable tomorrow because others have bought it at a higher price. As an existing “investor,” I am benefitting from others getting in. Meanwhile, what I’m actually owning is a bitcoin. Don’t get me wrong, bitcoin is valuable, but it’s not worth $10,000 per coin, or even $1,000 per coin. It’s a currency. It’s not Amazon or Apple stock.
I have friends messaging me asking, “What do you think about bitcoin? It’s so expensive right now, but I feel like if I don’t get in now then I will regret it later.” Notice this emotional state, this panic. Everyone is behaving like this is an emergency. Everyone and his dog is buying bitcoin. This is a form of mania. And the price is reflecting that
I think it’s important to realize and remember that this is a bubble. Your coins are going up because the sucker after you is buying coins. And they’re only buying them because they think that the price will go up.
Another sign that this is a bubble is the way that those who own bitcoins are trying to persuade everyone who doesn’t own them to buy them. These people might persuade themselves that they are motivated to help others, but I believe that the true reason is that they know that the more people are buying bitcoin, the more the price will go up. So they’re trying to keep the bubble growing. When you buy bitcoin, you’re potentially going to make some gains if you can get out again before it crashes. However, once you’re a convert, and you get into the swing of this, you’re going to stay in and work on persuading others to buy. It looks just like a pyramid scheme from this standpoint.
Before you post a response trying to persuade me that there is not a bitcoin bubble, remember that by doing so you will actually be reinforcing my hypothesis.
anyway i'm doing for money,i dont care about technology bla bla bla
ponzi model need new money,when less new money it will start collapse.like now
ලංකාවේ උන්ට වැරදිලා තියෙන්නේ බොරුව කියලා තව එකෙක්ව අමාරුවේ දාන නිසා..එත් වෙන දේ පෙන්නලා දුන්නා නම් මිනිස්සු තේරුම් අරන් bitocin ගනීවි. එළකිරි එකේම කි දෙනෙක් 15000-20000 පවා Bitcoin ගන්න කියලා මිනිසු පෙලෙබ්බ්වද?කෝ අද ඒ අය?දැන් බෙහෙතකට වත් වත් crypto thread එකක් වැටෙනවද?bump වෙනවද? කි දෙනෙක්ම එළකිරි එකේ හොද ගානක් ලොස්ට් කර ගත්තද 
