/biz/ - Business & Finance

>>9577850

Wrong, all speculative bubbles in history that have collapsed have done so due to changes in the fundamentals of the underlying asset.

>South sea bubble
Collapsed due to government 'cooking the booking' as many MPs were invested in SS.

>Enron
Collapsed due to fraudulent accounting

>Dot com bubble
Collapsed due to an inability for corporations to pay their employees based on assumed revenue that never materialised

The reality is very few 'asset' based 'bubbles' have truly ever collapsed, this is also why assets have many 'minibubbles' in them, but ultimately any asset that derives its value from scarcity will retain its value over a long enough time period. Beanie babies weren't actually scarce, hence their collapse. Consider diamonds, art, precious metals.

>b-b-but my industrial applications!
Does not account for even 10% of the wealth maintained from precious metals. As older members of the population die off the mentality of what is valuable is fundamentally changing. It may seem insane to you that something like bitcoin, a bunch of 1s and 0s, will rival precious metals in value, but it would also seem insane a few decades ago that 14 year olds would spend 100 USD on fortnite skins. Society, culture, evolves and changes, the younger generations exposed to computers their entire lives, will be far more able to conceptualise something purely digital as having value. Even diamonds have their price propped up by artificial scarcity, they are just shiny rocks. Or art, a lot of art currently worth tens of millions is just a white canvas, or a bunch of different coloured squares.

Even if you argue that the modern art world is propped up by money laundering, crypto launders money far better than art. The government will crack down on small scale money laundering, but if you think billionaires can't and won't get away with using crypto to launder money and avoid sanctions you're deluded.

Pic related: price of platinum.