BTC is rational like tulip-bulbs are rational, it isn't rational like USD is rational (you can argue USD is irrational too, of course).
When I said irrational I just meant in the context of things we can relate BTC to (from tulip bulbs to fairly stable fiat to securities).
Like you can call penny stocks "rational" and a ponzi scheme "rational" (I don't think BTC goes this far btw so this is for illustrative purposes don't yell at me) you can call BTC "rational" but compared to the SPY or Vanguard target-date funds etc.. these things look pretty "crazy"
tulip-bulbs do not have actual utility. they can't feed my family.
i can guess what you'll say next... the volatility of bitcoin won't either!
my response to that is that bitcoin isn't a currency. it is a store of value in that i can borrow against its value. with that borrowing, i can use it to generate value for my family. i can borrow against it (without having to go to a bank or get permission or even a credit check!) and open up a grocery market, sell bananas, generate revenue and pay down the loan. there is value in that and it has nothing to do with volatility as long as my loan-to-value ratio is maintained.
few understand or even consider those aspects of bitcoin and crypto in general.
When I said irrational I just meant in the context of things we can relate BTC to (from tulip bulbs to fairly stable fiat to securities).
Like you can call penny stocks "rational" and a ponzi scheme "rational" (I don't think BTC goes this far btw so this is for illustrative purposes don't yell at me) you can call BTC "rational" but compared to the SPY or Vanguard target-date funds etc.. these things look pretty "crazy"