A lot of it I believe is the fear of missing out (FOMO). People see the headlines that bitcoin has hit to a new high, so they jump in and buy when it is expensive, then lose a bunch on the way down.

I prefer productive assets like real estate or shares of companies with solid cash flow, bought at conservative prices.

Buying bitcoin is like buying a lottery ticket — you hope your number is called, but the odds are against you. It is speculation rather than investing. Some folks will get rich, but more by accident than analysis.