The Bitcoin Bubble and a Bad Hypothesis Under the efficient-markets hypothesis, a worthless digital currency should have never gotten off the ground. The sudden drop in the value of Bitcoins, the hot bitcoin interest Internet currency, has added urgency to the question of whether Bitcoin is the way of the future, or just another bubble. Not to keep readers in suspense, the answer is a bubble, but a particularly interesting example of one.
In particular, Bitcoin represents what ought to be the final refutation of the efficient-markets hypothesis, which still guides most regulation of financial markets. Before going any further, what is Bitcoin? As with any question nowadays, Wikipedia provides a good initial explanation and plenty of references. By analogy with gold, the producers are called miners.