>If you've been following what's actually gone on in the Bitcoin world for any length of time, you'd know that "BTC investors" aren't "more sophisticated" - they tend to be less so.
Part of this is Bitcoin self-selects against those with a rigorous understanding of monetary economics, capital markets, and foreign exchange.
Pretty much. It self-selects for libertarian ideologues, money-launderers, and people trying to take advantage of the ideologues and/or ride the bubble. The cool thing about BTC is that the tech bubble has given a particular set of fools a whole lot of money from which to be parted.
No. It is, however, a very profitable asset to make markets in,. That implies huge market inefficiencies and a large population of low-infomration market participants. The problem is the low size and liquidity make other markets more profitable to think about, since 10% of ten or twenty billion is less than a few basis points [1] of trillions.
Part of this is Bitcoin self-selects against those with a rigorous understanding of monetary economics, capital markets, and foreign exchange.