Post
Topic
Board Economics
Re: George Soros' Theory of Reflexivity and Bitcoin
by
gkv9
on 18/12/2015, 14:15:49 UTC
Does reflexivity apply to bitcoin?

Yes. In a simple form. A rising XBT:USD price attracts more users. New users bid up the price, attracting even more new users. This has happened several times since 2010, resulting in large new waves of users each time.

A rising price attracts more speculators. The result is a bubble that eventually pops, and then the speculators leave.

Not just limited to that, but those speculators who play with markets, when dump and leave the market, they let other newbies and joining members leave BTC too showing them such huge volatility and hard liquid markets...