Quote from: Akka on July 05, 2013, 06:30:00 PM

You kake pretty good arguments and try to explain it rationally.

Problem is, markets simply are not rational.

It's pure psychology, mud could become worth millions and gold could become worthless given the right psychology. (exaggerating a little).

Once the psychology effect is gone it will return to it's true value and your points will be taken into account. But for now they simply don't matter.

Yeah, I agree that many bitcoin "speculators" are driven more by physcology than any sort of fundamental analysis. Since it is really impossible to do any sort of standard fundamental analysis with bitcoin, the temptation to trade off of emotion is even stronger than with other asset classes.

However, I think this dip will eventually be a the opportunity for big investment firms to get in on bitcoin. These firms should be aware of bitcoin now, and they should be less likely to trade on emotion and more likely to actually perform an investment potential analysis.