2) Is Bitcoin bolstering its bubble by encouraging negative press? There's no shortage of (probably reasonable) scare stories comparing Bitcoin to various extraordinary popular delusions. The question at this point is: after this deluge of negative predictions from some very heavy hitters, what would it take to convince Bitcoin investors that there will eventually be a collapse? It seems that the Bitcoin bubble has already endured worse pricks than the 1920s stock market or the aughts housing market, and still the craze continues. (I retrodict that there are far more negative bitcoin articles for July 2011 than for the U.S. housing market in July 2006, and the Bitcoin market is much smaller.) Is it possible that right from the start, Bitcoin's most interested parties were good students of history in the sense that they actively pumped the internet with negative publicity? That way the bubble will build for much longer, because buyers-in will have been hearing panicked shouts to sell the whole time.
Tooth & Law
3 hours ago