The bitcoin situation is a bit different.
Bitcoin has another problem - people with no idea at all are in that market. Someone who buys a house, renovates it has a goal for which work has done and therefore produces jobs and the money goes back to economy (+wealth) - the housing market crash had several multiple problems which led to the crash you are talking about. Actually it was just a saturation of the market starting a chain reaction (because over dept). And so on, there is just a shitload of factors involved with that.
And in Bitcoin - there is nothing. Someone puts money in it, hoping for a dream with few or no arguments at all. Also it is christmas time - the current drop was absolutely expected .. and for those who knows exchanges/trading etc it was also expected, that a lot of ppl starting to shit bricks because of this and panic seeling.
In the end, the bitcoin market is pretty good predictible, because there are very few factors someone has to consider, which makes it pretty perfect for daytrading - but pretty useless for actual USE of the currency.
BTC will fail in the long run - other cryptos may suceed, but in the end it is the market and the stability which is responsible for that - not the buyers
Topic: All this panic over the Bitcoin 'bubble' almost reminds me of the housing market (Read 1905 times)
December 16, 2013, 04:04:17 PM
December 16, 2013, 03:29:19 PM
Does anybody remember the housing crisis? Sure you must if you're at all interested in economics like I am, everybody was screaming about a bubble and here in the UK we have a problem of a stupidly overinflated housing markets because people buy them up, renovate them and refuse to sell them until they make enough profit out of it and eventually it becomes such a problem that ordinary people can't really afford to buy them because the markup is so much higher than what the speculators actually bought the houses for.
It's almost as if the exact same thing is happening with Bitcoin, if the buying frenzy has finally worn off maybe now the prices will settle down and a steady rise will begin or it will get some stability? There was an interesting thing with the BBC in the UK where everybody ran around in a panic screaming about how it was the end of the world ( Mostly the speculators who made money off the stupid house prices ) but in the end when you looked at it, the majority benefited from the prices returning to a steady average rather than a volatile high.
It's almost as if the exact same thing is happening with Bitcoin, if the buying frenzy has finally worn off maybe now the prices will settle down and a steady rise will begin or it will get some stability? There was an interesting thing with the BBC in the UK where everybody ran around in a panic screaming about how it was the end of the world ( Mostly the speculators who made money off the stupid house prices ) but in the end when you looked at it, the majority benefited from the prices returning to a steady average rather than a volatile high.
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