Post
Topic
Board Economics
Re: The real estate bubble
by
Kazuyukie
on 05/08/2018, 10:55:15 UTC
However, unlike equity bubbles, the addition of new buyers to the ecosystem actually increases the value of the underlying token. The value (given fixed supply) is simply a product of scarcity, which is going to be directly related to how many people hold the currency. an additional buyer of tesla stock does not increase the long term cash flow of the underlying business, but each additional speculator who decides that bitcoin is valuable increases the underlying value of the bitcoin network.