it looks like you are confusing many things. there is no laws in bitcoin but decisions of majority.
If you are in the US are are caught doing this, you probably can be prosecuted.
there is no such a thing like overvalued bitcoin because it has to have big value to be useful because of its limited quantity.
Sure there is.
and the last thing people buying stuff or transferring money with bitcoin might not need to even know its value because it is irrelevant when you buy bitcoin to buy something right away using them.
If the cost of the item changes with the market that might be the case, but most of us are paid in fiat so if we buy at $150 and then the price drops to $75 resulting in bitcoin cost of that widget we want doubling, we are paying more of our paycheck than if we waited to buy at $75.
Thus if it looks like bitcoin is in a bubble, I'm using cash because it would suck to buy the coins and then have the price plummet before it is spent.
there is no such thing like short term better. the higher price of bitcoin and the more merchants the better.
Of course there is such a thing as short term better.