Do you think that bitcoin is a bubble?
something has to give, and when the market corrects in full force, it will be painful.
No, I am not saying this is an episode of Tulip mania. Bitcoin is definitely the future, but we have to differentiate long term potential and short term growth. We live in a world where exponential growth is simply not sustainable: value cannot be created, at an exponential speed, out of thin air, over a long period of time.
people are buying bitcoin and holding because they think it will go up, not because they have any real understanding of the fair value of bitcoin.
it has now turned into a self-fulfilling prophecy: financially illiterate people go in -> creates liquidity resistance due to classic "anchoring" (they have no sell threshold) that helps bitcoin survive shocks such as China ban and bitcoin cash fiasco -> more financially illiterate people go in as they see the short-term "survival and bounce back" as a sign of future growth.
and in the cycle of all of this, media plays an important role too in the sense that bad news are good news, i.e., even bad news will cause more people to find out about bitcoin and buy bitcoin, especially the financially illiterates, and good news are amazing news.
I, as a long time RFD poster, am putting my reputation on the line, and predicting that bitcoin will drop to less than $500 USD.