Increased amounts of speculation actually in theory should decrease volatility and bring the price to the fair value more quickly. What I think you are not con

Increased amounts of speculation actually in theory should decrease volatility and bring the price to the fair value more quickly. What I think you are not considering here is that you can speculate both on the upside or the downside. Speculators are only trying to predict the future price, speculation is not the same as a "pump and dump scheme". > When the speculators all sell and the only demand comes from people looking to actually use them, the price will drop by a lot. ... bitcoin’s value will drop even further as people perceive it as “dead” or worthless (as maybe it should have always been perceived) Like you said yourself, if it is true that Bitcoin is overvalued then it would be a good thing for every Bitcoin user if its price dropped to the fair value. Why are you describing that situation like a bad thing here? I expect users would be happy that they can now afford more of the coin for practical use cases, and adoption in those use cases would probably go up more than anything.