The bitcoin phenomenon very closely resembles the dot com bubble of the early 2000s, in that it's unearthing a herd like urge in the general population. First everyone follows the trend to buy high, like sheep, then everyone follows the trend to sell low. When anything starts to attract large amounts of unsophisticated investors -- trouble is very near.
It will only take a slight amount of fear to unleash a complete domino effect that will cause Bitcoin prices to drop dramatically, because average people's emotions are fragile when it comes to their money. We could see a panic starting very soon, seemingly out of no good reason, because of the emotional instability of naive investors that very recently started to buy the coin.
Once the smartest investors realize that the stock cannot go any higher, they will start selling, followed the next tier and so on, until the general population panics and a massive fire sale occurs, causing the stock to disintegrate.
Bitcoin after all is unsustainable, as the energy requirements to mine will just keep growing; the people's faith in the coin will not.
It will only take a slight amount of fear to unleash a complete domino effect that will cause Bitcoin prices to drop dramatically, because average people's emotions are fragile when it comes to their money. We could see a panic starting very soon, seemingly out of no good reason, because of the emotional instability of naive investors that very recently started to buy the coin.
Once the smartest investors realize that the stock cannot go any higher, they will start selling, followed the next tier and so on, until the general population panics and a massive fire sale occurs, causing the stock to disintegrate.
Bitcoin after all is unsustainable, as the energy requirements to mine will just keep growing; the people's faith in the coin will not.