Topic: [2017-11-10] It is Highly Inaccurate to Describe Bitcoin as a Bubble, Here’s Why (Read 2776 times)

What is clear to me now is that each person in this debate has its own definition of a bubble and each is predicting when the bubble can go pop. Well, these people can also get wrong and we will see that as Bitcoin would be progressing and evolving. My idea of a bubble is that it would be something that will pop or be destroyed and would soon be rendered useless. My perception is that a bubble can be a crash or when the value of something would drastically go down and would never get recovered.

When something will crash but later on can get recovered I don't think it should be considered as a bubble but just an ordinary correction of its value. Bitcoin has been doing this from time to time...it can correct itself before going back to the same level it reached before and then make a surge again and again. In my final opinion, let's just leave things to history if there would really be a big bubble that can make Bitcoin go down in history as just another worthless experimental digital currency.

articles like this makes me laugh , the fact that the price rised more than 4500% in the last 2 years is a strong indicator of a bubble , whether you want to admit it or not ...

It seems to me that to compare the share price of Tesla with the value of bitcoin is impossible. The growing popularity of electric cars Tesla production will increase and it will give significant real income. Now there is no one in the world who would not dream to have to use Tesla. Bitcoin is Packed with speculative capital and therefore its price is not stable.

Wozniak said right about bitcoin. I don't want to repeat his words, but just say that many economical brains call it as a babble, but I am more use to words of someone who said: "bitcoin is a babble which will never pop". It really has intensive growth as babble, but bitcoin's limited number are protecting this babble from exploding.

Many public figures in the traditional financial sector including JPMorgan CEO Jamie Morgan have criticized Bitcoin, describing it as a bubble. However, because of its decentralized, mathematical and transparent nature, it is highly inaccurate to call Bitcoin a bubble of any sort.

Tesla, Amazon, Bitcoin “Bubbles”

Bitcoin is not a bubble, contrary to the dishonest and non-factual claims of bank executives. There was a bubble in Bitcoin in 2013 when the demand for Bitcoin rose to a point where the market could no longer support it and the Bitcoin price crashed from $1,300 to $200. But, it is not accurate to call Bitcoin itself a bubble, the same way it is not accurate to describe Amazon or Tesla a bubble.

Even up until April of this year, analysts described Tesla’s exponential increase in value a “bubble,” as analysts did with Amazon throughout the company’s 20 years of existence. Six months ago, Matthew DeBord, the transportation editor at Business Insider, wrote:

“At this point, a Tesla bubble looks obvious and it looks as obvious as it has since early this year. The difference now is that it's grown so large that it's become terrifying.”

Another “expert” Greenlight Capital's David Einhorn, stated that Tesla is a bubble that will not pop anytime soon, but it is a bubble. "In due time, we expect these bubbles to pop,” said Einhorn.

It is important to acknowledge this trend in any emerging company, technology and startup. Analysts and experts are quick to claim that anything is a bubble, given its rapid increase in value and exponential growth rate.

From 2013 to 2017, the share price of Tesla has increased from around $20 to $302, with many minor and major corrections. In December, the price of Tesla shares dropped by over $100, from $250 to $150, due to the company’s struggling finances. Still, over time Tesla recovered and it developed a sustainable business, a market, and most importantly, a consumer base identical to how Bitcoin has evolved into a sustainable financial network, a robust market and secured an active consumer base of tens of millions of users.

Furthermore, it is far-fetched to claim that the Bitcoin market, which has a similar liquidity and trading volume of Apple, the world’s most liquid stock at $3.3 bln daily trading volume, because it has significantly matured since its introduction in 2009.

Bitcoin is more legitimate than most systems

As Apple co-founder Steve Wozniak observed, Bitcoin is more legitimate and transparent than most systems in existence today. Wozniak noted at the Money2020 conference:

”There is a certain finite amount of Bitcoin that can ever exist. Gold gets mined and mined and mined. Maybe there’s a finite amount of gold in the world, but Bitcoin is even more mathematical and regulated and nobody can change mathematics.”

https://cointelegraph.com/news/it-is-highly-inaccurate-to-describe-bitcoin-as-a-bubble-heres-why