Bitcoin’s Price Was Artificially Inflated Last Year, Researchers Say
Today Matt Levine talks about this paper in his daily column:<p><a href="https://www.bloomberg.com/view/articles/2018-06-13/judge-rules-at-amp-t-merger-will-be-fine" rel="nofollow">https://www.bloomberg.com/view/articles/2018-06-13/judge-rul...</a><p>"of these two explanations—<p>1) Bitcoin’s rapid and sustained rise is due to the fact that it satisfies a real economic need in an elegant way, and people have responded to that; or<p>2) Bitcoin’s rapid and sustained rise is due to a magical fountain of fake dollars that everyone just decided to treat as real dollars, and that can be used to manipulate its price any time it’s in danger of falling—<p>the second is possibly more impressive. Like, creating billions of dollars’ worth of value by building a useful thing is relatively straightforward. Creating billions of dollars’ worth of value with a ridiculous perpetual-motion fake-dollar-printing machine is a real innovation."