The market is finally showing some weakness after a wild post-election stock market run-up, and it's taking Bitcoin with it. At least so far.
Three years ago, Bitcoin was under $400, a price I thought was too high even then. As far as I'm concerned, Bitcoin has no intrinsic value and should be worth nothing. So why does anyone think it's worth thousands (and in some cases, millions) of dollars?
It's the theory of false scarcity. There are a limited number of bitcoins in the world and the usage of blockchain technology has assigned the ownership of each coin to specific wallets owned by individuals. So to take "ownership," I have to use the universal blockchain mechanism, accepted by all as valid, to transfer a coin.
I think bitcoin has already proven itself through the years. Talking about bitcoin becoming a bubble after sometime has already been a topic for a very long time but up until now it has not even happened. No one actually knows if this will really happen or not. I think, for me, it is impossible for bitcoin to become a bubble that will pop out after a certain point in time. What I think is most probable to happen is when it lose its value til it reaches zero because another coin better than it is created. The people who uses bitcoin are the ones who gives value to bitcoin, not the bitcoin itself.