The decision whether bitcoin value brought by its social status

The decision whether bitcoin value brought by its social status

Obviously, for you, want to have a value of 13 times the growth in the last year, the property is a completely logical thing, but the value of bitcoin is brought about by its social status?

A study from the leading research institutions in Bernstein research recently revealed the related content. Analysts agree with the limited supply of bitcoin is an important factor leading to the rising price of this view, but bitcoin has the social status is also one of the reasons investors join the frenzy.

“Bitcoin does not provide investors with cash flow or other benefits, but the largest supply of bitcoin is fixed, so the price is for the people for the bitcoin potential demand for the prediction of the decision.”

Veblen effect

Like wine, high-end sports car and market brand, bitcoin can produce Veblen effect. When the higher commodity prices, and the bound social status will be affected by the price increases more and more high, Bernstein called “vanity value.” The analyst added:

“In mid 2017, we conducted a survey of consumers in China, through the investigation of 1070 luxury consumers, we found that Veblen effect is an important factor in consumer choice third trademark.”

Bitcoin is hard to understand for those who are not going to know who is. However, with the bitcoin allows them to obtain a “vanity value,” it looks as if they have a high IQ and insight as.

Like a drug

Bernstein made a strange but very practical contrast, they put bitcoin likened gelatin – a traditional Chinese medicine, is from the extracted from the donkey skin. In 2016, Chinese produced about 5000 tons of gelatin, it takes about 2 million 500 thousand donkeys on the donkey skin, which led directly to the market at the time of donkey skin scarce, and at the same time there has been a lot of cheap copy.

In this manufacturing industry leading products – Dong’e – Ejiao last year because the Veblen effect and scarcity of its products, its price of a total of 18 times to adjust.

The domain name.Com Frenzy?

Although it is not a commodity, but in early 90s, with the outbreak of the domain name.Com, if you can start or join a technology company that will bring you some social recognition and social status. People hope to seize this opportunity is actually a frenzy, because they want to be able to become a member of the elite early this time in the tide of science and technology.

Now the tide appears, we can already see some only in the company name followed by the block chain, the company will be able to obtain huge profits of the example, and it can enable the company to become a part of the encryption currency in the field directly, and its social status is closely linked.

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