Too many bitcoins were given out too easily at the beginning. Whenever bitcoin starts attracting interest there's a huge sell off that drives investment away. I guess the bitcoin economy will keep crashing down until people who got in early can cash out their million dollars.
I don't blame people who got in early, who doesn't want 500k for doing pretty much nothing? It was a design flaw. Not much can be done to fix it now.
it was intended for early miners/investors to profit.
we are seeing things in the short term because things are moving so quickly.
in a few years most of the early investors will sell off, and that wealth will be spread as the markets decides after that.