Some markets are more false than others. With cryptocurrencies 1) you can’t measure intrinsic demand, so you don’t know if a price increase is being driven by s

Some markets are more false than others. With cryptocurrencies 1) you can’t measure intrinsic demand, so you don’t know if a price increase is being driven by sheep-like speculators or real buyers who want to hold the asset for its own sake. 2) you can’t validate counterparty identity so people can buy and sell with themselves, thereby creating a false sense of market demand. 3) because of a lack of market transparency you have no idea at all what you can sell bitcoin for in a certain size, similar to diamonds where people pay $1000 for a commodity that they wouldn’t be able to sell themselves for $100, so ‘investments’ in it are an instant money loss. It’s one of these markets where if you aren’t scamming someone yourself then you are the one being scammed. All that said, this bubble is still mid froth, and I expect my comment to get downvoted, by scammers and suckers. EDIT (from https://www.nytimes.com/2017/11/21/technology/bitcoin-bitfinex-tether.html https://www.nytimes.com/2017/11/21/technology/bitcoin-bitfin...): > Tether and Bitfinex have insisted that the two operations are separate. But leaked documents known as the Paradise Papers, which were made public this month, show that Appleby, an offshore law firm, helped Mr. Potter and Mr. Devasini, the Bitfinex operators, set up Tether in the British Virgin Islands in late 2014. > One persistent online critic, going by the screen name Bitfinex’ed, has written several very detailed essays on Medium arguing that Bitfinex appears to be creating Tether coins out of thin air and then using them to buy Bitcoin and push the price up. I rest my case.