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The reason the value of bitcoins is going up is because people who buy bitcoins expect that others will pay a higher price for it in the future. That has a muc
by danielweber 14y ago
The reason the value of bitcoins is going up is because people who buy bitcoins expect that others will pay a higher price for it in the future.
That has a much shorter name: http://en.wikipedia.org/wiki/Greater_fool_theory http://en.wikipedia.org/wiki/Greater_fool_theory
The price of the Mona Lisa won't go down because the art community won't let it. It can do that because there is only 1 Mona Lisa. Such a force doesn't exist with Bitcoins.
- vrotaru 14y agoThere will be only 21 million bitcoins. Ever.
- danielweber 14y agoThere are only 3 million copies of SUPERMAN #75.
- vrotaru 14y agoyes, but for one thing a) no one cares b) it is not a hard limit, actually and, maybe, a) has something to do with b)
- skylan_q 14y agoActually, one of my favorite blogs is http://www.greaterfool.ca http://www.greaterfool.ca ;) I'm familiar with the greater fool theory. But people buy commodities, currencies and financial instruments on this expectation of increased future valuation. There could be a case made that the greater fool theory is in effect for bitcoins, but it can't be said that it is the case simply because people expect higher valuation in the future.
- donald_draper 14y ago"This whole country was made by greater fools!" – Oh sorry, wrong movie.