If we want to understand finance or economics, then we need to understand human behaviour. The BBC's Horizon has a really interesting programme (hat tip: Graham Brownlow) on human behaviour, which explains how it affects our decisions about money and finance. It is available here on BBC iPlayer until 6th March.
According to Robert Shiller , speaking at Davos, Bitcoin is a perfect example of a bubble - story here . Shiller sees Bitcoin as a backwards step in the evolution of money. George Selgin , a free banker, takes an opposing view - click here . Although he doesn't believe that Bitcoin is money, he sees its development as a fascinating turn in the evolution of money. In particular, he lauds the fact that Bitcoin production is constrained and cannot be infinite. There is a short video below where Bitcoin explain how it works.