Fair points since no one truly know fair value of bitcoin and most people only say it depends on supply/demand. But i think he don't know about the huge potential behind bitcoin, what bitcoin really can do or how technology advancement will make decentralized cryptocurrency success.
Can you explain your statement about Bitcoin's potential? Huge potential on what? Saying that kind of statement about Bitcoin having a huge upside might be misleading as we still will go back to its only basis which is demand and buyer's confidence, it is really up to the traders on what price they want to settle again before doing another profit taking. By the way being frequently traded in the market does not show potential as they are just clearly taking profit from the volatility of Bitcoin. 
Topic: Chief Investment Strategist of BlackRock Explained why Bitcoin is a Bubble (Read 323 times)
October 26, 2017, 09:27:41 PM
October 27, 2017, 03:38:47 AM
It's pretty hard to argue with his points. I don't think they necessarily mean Bitcoin is a bubble though. When Bitcoin started trading at $100, I'm sure these same people would have said that it would be impossible for Bitcoin to reach the $6000 mark. But it did, and that would be because Bitcoin is a completely different breed of monster. It doesn't necessarily have to play by the rules because the rules don't apply to it, thanks to it being a revolutionary technology.
October 26, 2017, 01:18:05 PM
Less than 0.1% of the global USD is in bitcoin but it has nowhere to grow apparently.
October 26, 2017, 01:16:06 PM
Fair points since no one truly know fair value of bitcoin and most people only say it depends on supply/demand. But i think he don't know about the huge potential behind bitcoin, what bitcoin really can do or how technology advancement will make decentralized cryptocurrency success.
Can you explain your statement about Bitcoin's potential? Huge potential on what? Saying that kind of statement about Bitcoin having a huge upside might be misleading as we still will go back to its only basis which is demand and buyer's confidence, it is really up to the traders on what price they want to settle again before doing another profit taking. By the way being frequently traded in the market does not show potential as they are just clearly taking profit from the volatility of Bitcoin. legendary
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October 26, 2017, 12:39:22 PM
I agree with former comments. We shouldn’t downplay these views, especially coming from someone who knows about markets so well. These aren'y simply FUD comments like Jamie Dimon, CEO of JPMorgan’s ones.
Investors usually give an “objective” value to an asset and compare it to the current price, thus stablishing if that asset is over or underpriced. The problem with bitcoin is that it is something completely new and we cannot stablish those kinds of parameters. That doesn’t mean that it is a complete bubble and it is going to collapse to zero, though. It might be overpriced some times but we cannot stablish a “true” value to compare to.
Anyway, investors stablishing “true” values on assets don’t always agree.
Investors usually give an “objective” value to an asset and compare it to the current price, thus stablishing if that asset is over or underpriced. The problem with bitcoin is that it is something completely new and we cannot stablish those kinds of parameters. That doesn’t mean that it is a complete bubble and it is going to collapse to zero, though. It might be overpriced some times but we cannot stablish a “true” value to compare to.
Anyway, investors stablishing “true” values on assets don’t always agree.
October 26, 2017, 12:19:08 PM
It is true that giving Bitcoin a fair market value is really hard because we really don't have any basis for its pricing except for its demand. And that is why it is so volatile as we are only relying on one thing and that is charts for Bitcoin. That is why Bitcoin is more suited in trading as there is no fundamentals behind it even if we tried.
They do really have a point on saying those things which we cant really see those things on bitcoin itself which i do agree but it wont really be considered as bubble. Theres a strong community support which price crash might not able to see but yet depending on case to case basis but seeing on its progress its nearly impossible to happen as of this days and as an investor we do really accept the risk behind it and we are sure aware on that one. October 26, 2017, 12:09:50 PM
It is true that giving Bitcoin a fair market value is really hard because we really don't have any basis for its pricing except for its demand. And that is why it is so volatile as we are only relying on one thing and that is charts for Bitcoin. That is why Bitcoin is more suited in trading as there is no fundamentals behind it even if we tried.
October 26, 2017, 11:31:08 AM
Business Insider interviewed the Chief Investment Strategist of BlackRock, Richard Turnill on what are his views about Bitcoin, and yes he is one of the people who are claiming Bitcoin is a bubble and he explains why he is not an owner of it.
- Spectacular Price Increases, but there is no inherent right or wrong price fall
- What is the fair value for Bitcoin?
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