The way I see it most investors are not rational in the crypto markets. A big portion of the trading is done on hunches alone, and people don't really try to find any underlying value. If the asset you're investing in doesn't have any long term plan for actually being useful, then it certainly won't be worth much in the future. Bitcoin doesn't really offer very much utility right now, with such high transaction costs. Anyone that can transfer money legally will do it in another way. This just leaves people that can't transfer legally, and a black market like that is bound to be hit hard by governments.