At any rate, the durability and magnitude of the Bitcoin phenomenon, running for nearly 10 years and with a putative value of nearly $US 100 billion, provides us with a very sharp test of the Efficient (financial) Markets Hypothesis. If Bitcoin eventually becomes a currency, the EMH and its supporters will be vindicated, and I (along with quite a few other economists) will have a lot of egg on my face. If the bubble bursts, the roles will be reversed.
Well, no, not really. Not at all in fact.
We face uncertainty. It might succeed and it probably won’t. There’s an option value to the thought that it might succeed. That it doesn’t will not change the point that while we face uncertainty there’s an option value.