Not quite, he is saying that it depends on # of buyers vs. # of sellers at any given moment. Speculation creates value, and this in turn creates more demand, mainstream media attention, etc. A fast run-up in price doesn't make a bubble. Bitcoin has and will continue to attract media attention and more of the general population. It's healthy to have these waves of price increases, it means that the media is influencing a larger number of people and turning them into buyers aka demand-creators
So meaning all that value comes from speculation, like the dotcom bubble. Thats a very dangerous spot to be in because it could all start going south. What we would rather much be seeing is the growth of unique users and the growth of transactions or usage instead of the growth in price
That's why Bitcoin can hardly be called an investment
I guess many would disagree with that statement but is there anyone who would call pouring your money into a Ponzy scheme or HYIP shebang an investment? Unless Bitcoin becomes a currency in its own right, it will remain in the state of a "financial pyramid" mainly. As long as it expands, its price could rise as well, but it can't expand indefinitely if it is set to remain only that, i.e. a highly speculative asset. That's likely another reason why we see so much confrontation in the Bitcoin camp right now
