Rational Exuberance

The basis of social relationships, and the most powerful force affecting human relations, is mimesis, or mimetic attraction, whereby objects of desire are produced through imitation. Bitcoin, acting as a locus point for this process of mimesis, is undergoing a massive bull run since the nearly catastrophic dip that happened March 17, 2020. While the process of mimesis describes the runout and bull run mechanics singularly well, it does not address the underlying fundamental value of the object of desire. It is a paramount quality of desire that it can act on objects with no fundamental value, as we see with strange products like branded bricks and rocks going for insane 5000% markups over their unbranded cousins. Because the objects have no fundamental value, the value grows exponentially and then implodes even faster when the bubble pops. Bitcoin, and the crypto ecosystem, have extreme fundamental value, and thus we see the process of a creative bubble. People buying Bitcoin are not irrational, but the process of mimesis can induce meta-rational herding behaviors that produce intense scarcity and price volatility.