John Quiggin had a good piece in the New York Times, pointing out how the sky high valuations of Bitcoin undermine the efficient market hypothesis that plays a central role in much economic theory. In the strong form we can count on markets to direct capital to its best possible uses.The market is a huge empty auditorium. If I look inside the auditorium there is a lot of bitcoin (because we will need FX transfer), then there are a bunch of Fintech vendors, setting up shop. Wait until the vendors get a chance to establish congestion control and we will see how much market bitcoin retains.
Remember, bitcoin is measured in fiat, and the fiats are losing market share quite rapidly to the sandbox, due to the conceit that they have a sole monopoly. So fiats themselves are quite unstable,as we can see from the herd of hysterical magicians.
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