Bitcoin and the Speculative Economy: Why Perception Matters
Bitcoin’s value is largely driven by speculation and cultural perception rather than inherent utility or tangible properties. Like gold or art, its worth comes from the belief that it will appreciate over time. Despite lacking physical appeal or widespread use, Bitcoin continues to rise in value, resembling a speculative bubble. However, unlike traditional bubbles, it doesn't rely on continuous new participants to sustain its worth, which gives it a degree of longevity. Ultimately, Bitcoin’s value is shaped by the collective expectation of future profit, making it a unique example of how culture and speculation influence asset prices.
