Markets allocate resources and determine prices
Jan 3, 2021
. . . constituting the basic rationality of our system.
A good example is how the crypto market has priced Bitcoin over the last five years. A single Bitcoin was $226 in May, 2015. Nineteen months later (Dec. 2017) it was $19,000. Eleven months later (Nov. 2018) it was $3,000. Nine months later (July 2019) it was $12,000. Eight months later (March 2020) it was $5,000. Ten months later (now) it’s $35,000.
Of course, price is one thing and value is another. The median wage level in the state of Mississippi is $35,000 a year. A wage earner might be a little reticent to spend his annual wage on something that actually has no value at all.
