Quote:
Originally Posted by poncho-mike
Greed makes people do dumb things.
When I was in college, I remember the professor talking about financial bubbles. The Tulip Bulb Mania in one of the European countries was a model he used to show how investor psychology could drive prices to extremes.. People were investing all of their life's savings into tulip bulbs of all things. At the peak, the price of one of the rarest bulbs was equal to the price of a mansion. Prices soared, then the market crashed. I'm not saying this could happen with Bitcoin, but it is an example of how investor psychology can drive prices to extremes that are not sustainable.
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This is exactly what comes to mind when I think about bitcoin.