According to a January 9th article from Business Insider, the kudos associated with crypto makes it an attractive asset. A study carried out by analysts at Bernstein Research said that while Bitcoin's scarcity contributes to the price spikes, many investors are buying in just so they can hang with the cool cats. As there are no financial returns or cash flow associated with bitcoins, and there is a maximum fixed supply, the price fluctuation is caused by speculation on its potential demand. This is why the futures markets and hedge funds are joining in.

The research investigated Bitcoin's qualification as a 'Veblen good.' This is defined as "a product which gains its appeal from the social status attained by owning it," aka snob value. Well- known Veblen goods include fancy cars, elite couture, and trends in fashion. This is where Bitcoin comes in, acting exactly in the nature of a Veblen good. Its snob value lies in its new tech, which many people perceive as hard to understand, except for geeks and smart entrepreneurs who have greater insight or intelligence.

We've seen it all before, with tulips and dot-coms, and now in the 21st there is again a social standing attached to the crypto community. Anyone who knows the difference between BTC and BCH, not to mention PPT, ETH, ZDR and XRP is already moving in a higher echelon.