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Old 2nd January 2018, 09:53 AM   #1369
psionl0
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Originally Posted by Craig B View Post
I suppose there could be a speculative bubble in the price of old or rare stamps. If Bitcoin is as you say, then you are admitting that it is a bubble.

Because current stamps used to cover postage charges don't behave like bitcoin. Things providing a service don't shoot up in price to that degree; because the extent of the service gives them an intrinsic measurable value, which Bitcoin doesn't have.

Pure speculation. "Buying at one price and selling at another" can create a bubble, if it gets out of hand and becomes a mania unrelated to the object's value, assuming that it has a value in the first place.
So what? I have always said that bitcoin is in a bubble and that it has gone through many bubbles in its lifetime. Some were minor and some were spectacular. It is your assertion that bitcoin will go through a final bubble then have no lasting value that is without merit.

Collecting cancelled stamps that have no "intrinsic value" (whatever that means) and have practical use whatsoever is an exact analogy. Many stamp buyers are only in it for the money (ie speculators). There seems to be no end in sight to the number of "greater fools" who are willing to buy rare and expensive stamps.
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"The process by which banks create money is so simple that the mind is repelled. Where something so important is involved, a deeper mystery seems only decent." - Galbraith, 1975
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