Unless you have been living in a cave, you would have heard of the rise of bitcoin. Here is how the chart looks like.
Many people compare this to the tuilip mania, where prices of tulip went out of control and dropped drastically eventually. Now why would seemingly rational people buy tulips or bitcoins and cause the prices of such an item or non existing object to move up so high?
The answer is in demand and supply analysis!
In our economics tuition, we discuss this.