This note is a part of my Zettelkasten. What is below might not be complete or accurate. It
is also likely to change often.
Humans tend follow to the majority or believe authority naturally - its somewhat a part of our nature. This tends to become a problem when said belief goes against commonsense judgements.
Speculative Bubbles are situations where the price of an asset seem to be based on an expectation of an implausible view of the future or where the price of an asset vastly exceeds its intrinsic value. It occurs when people believe something, for the only reason that that others have the same belief.
In case of markets, this can be because of Information Asymmetry. Speculative Bubbles are closely related to the Fear of Missing Out. Mostly these bubbles can only be observed in retrospect.
Bitcoin is called by many as a speculative bubble. Our investment as a species on technological progress itself can be a speculative bubble.