I like your comment, however you described Bitcoins as “A pyramid scheme (artificial value from short term demand)."
I think the term “speculative bubble” better describes value being primarily driven by short-term demand. A pyramid scheme is described as: A non-sustainable business model that involves promising participants payment or services, primarily for enrolling other people into the scheme, rather than supplying any real investment or sale of products or services to the public.
Now, if you needed to pay $100 to become a Bitcoin miner and you received $50 from every other person you recruit to mine Bitcoins, this would be a pyramid scheme.
Indeed. I, for one, profited quite well for a few months as one of the many driving speculative conversion rates. I also predicted the short-term effect of the speculation and exited early. I do not see Bitcoin recovering any time soon.
I think the term “speculative bubble” better describes value being primarily driven by short-term demand. A pyramid scheme is described as: A non-sustainable business model that involves promising participants payment or services, primarily for enrolling other people into the scheme, rather than supplying any real investment or sale of products or services to the public.
Now, if you needed to pay $100 to become a Bitcoin miner and you received $50 from every other person you recruit to mine Bitcoins, this would be a pyramid scheme.