Bitcoin bubble?

The current Bitcoin phenomenon proves there is always a greater fool in speculative bubbles – until the bubble bursts.  The run up in price can only be due to speculation.  Bitcoins have no intrinsic value – whatever market value there might be is based only on what others are willing to give in return for the Bitcoins.  (Just like the U.S. Dollar – Bitcoins are not backed by gold or any other commodity.  Unlike the U.S. Dollar – government does not force others to accept your Bitcoins.)   If you want to gamble, start accumulating Bitcoins.  If you want to make money using Bitcoins, try arbitrage – quickly buy low in one market and sell high in another market.  Just don’t get caught holding Bitcoins when the bubble bursts.

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