Topic: BTC is like a subprime bubble (Read 1850 times)

As long as there is a supply and there is a demand for bitcoin there will always be a price and a trading volume. Bitcoin will grow in the future and the demand will rise and so will the price rise. But it's still too soon for bitcoin to not be used by anyone. After all it's a free market  and not a regulated one  

Hashcash, Digicash, Flooz, Beenz
no that's just theoretical
e: forex bucket shops & HYIP schemes.

Premise number 1: Has something like Bitcoin ever seen before?
Nope.

Therefore all the stupid "BTC is like X bubble" (insert in X whatever irrelevant shit you like like, Tulip mania, beanie babies, subprimes, whatever) are objectively nonsense. Get with the facts.

I wouldnt say its exactly like a subprime bubble, but the bubble point is probably what most people sense.

Subprime though is when people were getting screwed over through credit agency giving AAA, on bad loans that couldnt be paid back so the elements are different here. In bitcoin you also have a 2nd community which most VC`s have pumped like $1.3 mill to bring better ways.

Yet again this forum is filled with FUD. 

I wonder how long it will last?

the bubble is bursting~~

Hows that rock holding up?

Case in point. Only when you've done enough drugs, will you be able to understand what this guy is arguing against. I never said anything about bubble or gold in my post, but he sees them just like how druggies see dragons and unicorns.

Don't worry bro eventually that "6000 year gold bubble" will burst and you will be right..

Eventually.. it's been 6000 years but it's a bubble.

I see more delusional conspiracy theorists. That's the downside of bitcoin; people buy drugs and their minds get screwed over

Wow an unlimited amount of rothschilds agents on this board.

I don't think so, because even the army accept it. It is the concept of money make them believe the value of fiat currency, but the concept of money itself is already changed since the removal of honest money (gold standard) in 1971, just no one realized it

The old kings used to borrow gold from international bankers to finance their war, they don't issue their own fiat to do that, that will cause hyperinflation

Because statism, deal with it.

The problem only exists for people who use USD to measure value. When you use house or bitcoin to measure value, it is USD swing wildly against house and bitcoin, shows that USD is still highly demanded when facing financial uncertainty

The root of the question: Why people believe in some numbers created out of thin air instead of something created with true resources like electricity and labor? The belief in USD's value has become a religion that aliens could never understand  

It's more about what ASICs are supposed to be worth. If many miners exit at the same time their machines can become essentially worthless, making it impossible for them to re-coup any value except for their mined and not yet sold Bitcoins. At some point difficulty adjustment will catch up making it slightly profitable to use the machines again, but only if Bitcoin prices don't plunge along with it.

Then how do you justify all the infrastructure build around it including the payment system that businesses have adopted thus far. Never mind about miners, if a few drop out, I'm very sure there will be others willing to fill up the gap. So in this scenario how does a chain reaction or total collapse possible? Subprime mortgage crisis actually escalated to a level driven mainly by recession happening almost at the same time. One foreclosure leads to another and bad debts basically cause one bank to fail followed by another. In this scenario, I can't find any similarity if you decide to compare that to a few miners exiting?

If miners can't pay they will just sell their ASICs....

wait a minute. 




You are right, It's a very similar mechanism at work here... just that homes have some intrinsic base value because of universal demand (everybody needs to live at some place).

you can't speak of a bubble with current price. you can't expect something to only go up. as with everything bitcoin will have a good period and a lesser period. the real bubble might come if wallstreet decide to jump in.

current price isn't a bubble at all, it's a correction price and a steady grow from the last year, people should keep in mind that the 1200 peak is no where near reflecting the real btc value at that time, it was only caused by willy bot, mtgox and other crap like that

If Bitcoin fails it's because there is lack of demand, or reasonable use cases. It's not going to be because the actual math collapses, which is essentially what happened with complex mortgage derivatives. It is often said the math was so complex on purpose so that only a few could understand the actual valuation. Obviously some people became filthy rich off trading against and or flipping this PoS's.

APPLES = ORANGES

AIRPLANES = FUDGE BARS


I still can't understand why, despite there being 10000000 legitimate, logical, coherent reasons and arguments why bitcoin might fail, these guys choose to make ridiculously flawed comparisons, without any logic whatsoever. It's as if they want to tell the world "I'm an idiot".

USD = PRIME

BTC = SUBPRIME

so far, bitcoin is useless for me, but I think it eventually would be useful

You may be right, but it surely wasn't subprime

Bitcoin is not like the subprime bubble. It is more akin to a third world currency that has high volatility.

The problem with the subprime mortgage crisis is that the structure of repackaging large lots of mortgages into complex derivatives had little underlying value because the increase in issuing risky mortgages inherently meant they had less value than suggested. Simple math would have shown that many of the loans would be defaulted on, and the value would evaporate. It was a disaster all the way up.

Bitcoin however, derives value directly from the market being backed by a monetary value, and supply and demand. Yes we have seen steady decline from our $1200 peak, but the type of implosion of subprime was in a matter of weeks or months and completely destroyed companies as the value evaporated.

The question is not whether Bitcoin is a bubble or not, it is how do we derive Bitcoin's value and is that justifiable. Currently it is more a speculative insturment like small currencies, or commodities, so it's completely in the hands of traders. In order for Bitcoin to avoid volatility it will need to increase market cap so that 1 million dollar orders can't dump the market. Until then it's easily manipulated.

However, look at the Euro it's seem a major decrease in value because of QE and it's a major world currency, does this mean the Euro is a bubble or the inflationary economic models of existing systems are riddled with problems. The one thing Bitcoin does have as an advantage over other currencies, is it's like gold it can only be found so fast, and there is only so much of it.

I agree "The bubble will burst sooner or later"

but doubt whether is bitcoin bubble?

Jesus christ. Yeah let's ignore everything that makes Bitcoin unprecedented and let's compare it to some shitty financial product.
You guys need to get better with your shit tier FUD.

oh yeah USA government pumped money to save those companies.
BTC? who is going to save us? Satoshi?  probably not lol

Last I checked, there are no bogus credit ratings or loss-socializing regulations that hide Bitcoin's risk. It floats freely on the market.

Someone's bitter about buying high.

People can't even tell the truth to warn newbies DO NOT BUY BTC now? only perma-bull please begging buy my ponzi moon bags shits talk allowed?

Bitcoin is sinking down to $0, stay away from it or get financial ruin! if you have to invest then invest something else.

Any one suggest you to buy now is selling ponzi to you.

You won't want any btc then.

Which begs the question, 'why are you posting on a bitcoin enthusiast forum?'

The bubble will burst sooner or later, at some point nobody will want BTC.

subprime mortgage loans seemed to be safe at that time,
if they can't pay back, banks will just sell their home
that's why banks gave loans to virtually everyone. But you know what happened in 2008.

BTC is backed by very weak concept mining,
mining itself isn't strong enough to justify current BTC price.
 

BTC, only early adoptors were rewarded, and they are the ones creating bubbles,
they don't care what happens to you, they already cashed enough money,
so what they can do is sustain their position by creating bigger bubble.