Irrational Exuberance in the Bitcoin Market: Failure to Learn from History. Eyub Yegen. The Role of Information in Economics and Finance. Guidance to make effective and efficient decisions. Achieve the optimal level of benefit. Rational Behavior ( Marschak , 1950).
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No government regulation that interrupts the normal business cycle (Friedman, 1990).
Market efficiency hypothesis (Fama, 1998).
Investors always behave rationally.
Chicago school of economics.
Influence on Wall Street.
Digital Currency (innovation).
Peer-to-per payment system.
No transaction costs (short-term benefit).
Limited supply (no inflation).
Not backed by a central bank.
No regulation in the U.S.
Complex Bitcoin Mining Algorithm.
Sir Winston Chruchill: “Those who fail to learn from history are doomed to repeat it.”
Investors in general behave irrationally from time to time.
Ignoring information provided by the market.
Bitcoin investors have failed to take a lesson.
Have to face the consequences of their erroneous and ignorant actions.