is it a bubble? - page 2. | Bitcointalksearch.org

juragane

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Quote from: stevano on January 20, 2018, 07:00:29 PM

many people say that bitcoin bubble, honestly I still do not understand what is meant by the term bubble earlier?

until now I am still curious

can be said this like buble because the price at high time can suddenly break and fall to the base price when bitcoin already has no longer selling price or no enthusiasts at all.

princesspoppy

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I myself really don't know the meaning of bubble being described/named to bitcoin, but base on my understanding and interpretation, bitcoin is considered as a bubble for the reason that it may pop/disappear anytime for its intangibility (some says) and instability which can lead to people's loss. Also, it can be considered as a bubble because of its fast rising price which is we all know started from lesser price than it is right now. I don't know which one of this two is the meaning of bubble their talking about (the negative one or the positive one) but that answer is either one of them. I think? Cheesy

Hell-raiser

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Quote from: Betwrong on February 09, 2018, 10:23:21 AM

Quote from: Hell-raiser on February 08, 2018, 03:48:07 PM

Quote from: Betwrong on February 08, 2018, 11:01:02 AM

Quote from: Hell-raiser on February 06, 2018, 04:17:35 PM

We can expect or speculate that if fiat crashes and massively inflates, people will lose purchasing power of their money and their savings are going to depreciate. Therefore, they will become poorer all in all, and they will have less spare money to invest in speculative assets like crypto. In that case, the wealthy, while they will definitely have some cash, would rather invest it in gold and other hard assets. So it is difficult to say whether cryptocurrencies will get a serious boost if fiat money like the dollar should fail.

In my opinion gold is heavily overvalued already and wise people wouldn't invest in it nowadays. A reasonable price for gold would be $800/oz, not $1,300/oz like it is right now. Don't forget that many people have already lost a big part of their investments with gold. The price was $1,840/oz in July 2011 and it has never recovered from falling to $1,300 in June 2013. I would prefer to invest in silver which at least not so much overvalued right now and will almost certainly not fall in the future.

Actually, I don't think we can take 2011 gold prices as basis for comparison. If gold was overvalued, it was when its price hit $1,840 per ounce. Back in the day, the Fed had been running their sets of quantitative easing, an aptly euphemism for printing money, and the money got poured into various markets including derivatives markets, which made gold prices soar. In other words, it was artificial rise brought about by sectoral devaluation of the dollar, if you understand what I mean. Today's prices are pretty solid, so there is no reason to think that gold is overvalued now.

Let's think about the situation you described. Were those "printed money" destroyed or have they just disappeared afterwards? No. And yet, with all those money in the market the gold price had fallen from $1,840/oz to $1,300/oz. Taking into account that the price was only $300/oz in 2002 and was even lower before that, we can come to conclusion that the 2004-2011 rising was over-proportionate to the amount of "printed money". That's why I'm saying that maybe $800/oz is okay for today's gold price, but not $1,300/oz. Among all the financial bubbles gold is the ultimate one according to George Soros, and I agree with him.

The printed money was not destroyed because it was used for two purposes. First, it was used to wipe off debts which came about as a result of subprime mortgage crisis of 2008, and then to boost the economy. In other words, there was no necessity for this money to be destroyed afterwards. At least, this is what I think. Regardless, whatever George Soros can say, he is likely the last person whose words we should take at their face value. Right after Warren Buffett.

pilitusanelidus

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It's a bubble from point of view that it growth thanks to it's popularity and being hot topic for mass media and every powerful man in this field can make it bigger or smaller just saying smth. But it's a still great creation of mankind and I believe blockchain technology soon will be used in thousands of fields

CarnagexD

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Quote from: stevano on January 20, 2018, 07:00:29 PM

many people say that bitcoin bubble, honestly I still do not understand what is meant by the term bubble earlier?

until now I am still curious

Bitcoin can be a form of a bubble in terms of fast changes or transaction on its value and price. It is hard to invest out of something without a future to grow if we will classify bitcoin as a form of bubble that might pop in the future or disappear. Bitcoin is much more than that , because it is decentralized meaning that it could develop and can experience progress out of the support of people on dealing with bitcoin in the form of investments and tradings.

engrlodi

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In my opinion, bubble in the cryptocurrency is when the value is going higher higher then it reaches the highest price then it will going popped the bubble. Popped the bubble is that bitcoin will go down or it is the end. Bitcoin is not a bubble because bitcoin is the most trusted cryptocurrency out there and it will be a great cryptocurrency now and in the future. Let us be optimistic that bitcoin is not a bubble and I think bitcoin is not a bubble because many invesyors wants to invest more in bitcoin and bitcoin will be successful in the future. Let us hope for the future of our bitcoin.

Betwrong

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Quote from: Hell-raiser on February 08, 2018, 03:48:07 PM

Quote from: Betwrong on February 08, 2018, 11:01:02 AM

Quote from: Hell-raiser on February 06, 2018, 04:17:35 PM

Quote from: JuniAiko on February 06, 2018, 03:13:19 PM

Quote from: niteroy on February 06, 2018, 03:07:12 PM

The bubble is the banking system of the whole world, and we do bitcoin ourselves, as we ourselves impart its value using it in everyday life for calculations and transactions. The larger the bitcoin community the more and the bitcoin value. He can not burst at one point, because too many people believe in him!

The US debt have already just passed 1 trillion dollars, and is projected to continue to increase at an alarming rate this year due to the tax cuts (that mainly benefited the corporations and super wealthy). And Trump have suggested that he could just print money to settle it. -_-

If fiat "crashes" (inflates), I guess cryptos would thus become more valuable in relative to those currencies, maybe. Especially if some people loses faith in fiat and puts in more into cryptos and go for the long-term; especially now at this great price.

We can expect or speculate that if fiat crashes and massively inflates, people will lose purchasing power of their money and their savings are going to depreciate. Therefore, they will become poorer all in all, and they will have less spare money to invest in speculative assets like crypto. In that case, the wealthy, while they will definitely have some cash, would rather invest it in gold and other hard assets. So it is difficult to say whether cryptocurrencies will get a serious boost if fiat money like the dollar should fail.

In my opinion gold is heavily overvalued already and wise people wouldn't invest in it nowadays. A reasonable price for gold would be $800/oz, not $1,300/oz like it is right now. Don't forget that many people have already lost a big part of their investments with gold. The price was $1,840/oz in July 2011 and it has never recovered from falling to $1,300 in June 2013. I would prefer to invest in silver which at least not so much overvalued right now and will almost certainly not fall in the future.

Actually, I don't think we can take 2011 gold prices as basis for comparison. If gold was overvalued, it was when its price hit $1,840 per ounce. Back in the day, the Fed had been running their sets of quantitative easing, an aptly euphemism for printing money, and the money got poured into various markets including derivatives markets, which made gold prices soar. In other words, it was artificial rise brought about by sectoral devaluation of the dollar, if you understand what I mean. Today's prices are pretty solid, so there is no reason to think that gold is overvalued now.

Let's think about the situation you described. Were those "printed money" destroyed or have they just disappeared afterwards? No. And yet, with all those money in the market the gold price had fallen from $1,840/oz to $1,300/oz. Taking into account that the price was only $300/oz in 2002 and was even lower before that, we can come to conclusion that the 2004-2011 rising was over-proportionate to the amount of "printed money". That's why I'm saying that maybe $800/oz is okay for today's gold price, but not $1,300/oz. Among all the financial bubbles gold is the ultimate one according to George Soros, and I agree with him.

Zentor

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Yes, it is. But don`t worry. Almost every major project had bubbles, like NASDAQ, Amason, Google. Price would not crash soon and would be much higher after some time

Hell-raiser

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Quote from: Betwrong on February 08, 2018, 11:01:02 AM

Quote from: Hell-raiser on February 06, 2018, 04:17:35 PM

Quote from: JuniAiko on February 06, 2018, 03:13:19 PM

Quote from: niteroy on February 06, 2018, 03:07:12 PM

The bubble is the banking system of the whole world, and we do bitcoin ourselves, as we ourselves impart its value using it in everyday life for calculations and transactions. The larger the bitcoin community the more and the bitcoin value. He can not burst at one point, because too many people believe in him!

The US debt have already just passed 1 trillion dollars, and is projected to continue to increase at an alarming rate this year due to the tax cuts (that mainly benefited the corporations and super wealthy). And Trump have suggested that he could just print money to settle it. -_-

If fiat "crashes" (inflates), I guess cryptos would thus become more valuable in relative to those currencies, maybe. Especially if some people loses faith in fiat and puts in more into cryptos and go for the long-term; especially now at this great price.

We can expect or speculate that if fiat crashes and massively inflates, people will lose purchasing power of their money and their savings are going to depreciate. Therefore, they will become poorer all in all, and they will have less spare money to invest in speculative assets like crypto. In that case, the wealthy, while they will definitely have some cash, would rather invest it in gold and other hard assets. So it is difficult to say whether cryptocurrencies will get a serious boost if fiat money like the dollar should fail.

In my opinion gold is heavily overvalued already and wise people wouldn't invest in it nowadays. A reasonable price for gold would be $800/oz, not $1,300/oz like it is right now. Don't forget that many people have already lost a big part of their investments with gold. The price was $1,840/oz in July 2011 and it has never recovered from falling to $1,300 in June 2013. I would prefer to invest in silver which at least not so much overvalued right now and will almost certainly not fall in the future.

Actually, I don't think we can take 2011 gold prices as basis for comparison. If gold was overvalued, it was when its price hit $1,840 per ounce. Back in the day, the Fed had been running their sets of quantitative easing, an aptly euphemism for printing money, and the money got poured into various markets including derivatives markets, which made gold prices soar. In other words, it was artificial rise brought about by sectoral devaluation of the dollar, if you understand what I mean. Today's prices are pretty solid, so there is no reason to think that gold is overvalued now.

Betwrong

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I stand with Ukraine.

Quote from: Hell-raiser on February 06, 2018, 04:17:35 PM

Quote from: JuniAiko on February 06, 2018, 03:13:19 PM

Quote from: niteroy on February 06, 2018, 03:07:12 PM

The bubble is the banking system of the whole world, and we do bitcoin ourselves, as we ourselves impart its value using it in everyday life for calculations and transactions. The larger the bitcoin community the more and the bitcoin value. He can not burst at one point, because too many people believe in him!

The US debt have already just passed 1 trillion dollars, and is projected to continue to increase at an alarming rate this year due to the tax cuts (that mainly benefited the corporations and super wealthy). And Trump have suggested that he could just print money to settle it. -_-

If fiat "crashes" (inflates), I guess cryptos would thus become more valuable in relative to those currencies, maybe. Especially if some people loses faith in fiat and puts in more into cryptos and go for the long-term; especially now at this great price.

We can expect or speculate that if fiat crashes and massively inflates, people will lose purchasing power of their money and their savings are going to depreciate. Therefore, they will become poorer all in all, and they will have less spare money to invest in speculative assets like crypto. In that case, the wealthy, while they will definitely have some cash, would rather invest it in gold and other hard assets. So it is difficult to say whether cryptocurrencies will get a serious boost if fiat money like the dollar should fail.

In my opinion gold is heavily overvalued already and wise people wouldn't invest in it nowadays. A reasonable price for gold would be $800/oz, not $1,300/oz like it is right now. Don't forget that many people have already lost a big part of their investments with gold. The price was $1,840/oz in July 2011 and it has never recovered from falling to $1,300 in June 2013. I would prefer to invest in silver which at least not so much overvalued right now and will almost certainly not fall in the future.

All of the above refers to the present buying capacity of USD. If it falls significantly for some reasons, then of course even gold will rise in price. But our goal here is to predict what will rise more than other assets in the years to come, and I think Bitcoin and some other decent cryptos will definitely rise more than precious metals in any case.

Hell-raiser

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Activity: 462

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Quote from: JuniAiko on February 06, 2018, 03:13:19 PM

Quote from: niteroy on February 06, 2018, 03:07:12 PM

The bubble is the banking system of the whole world, and we do bitcoin ourselves, as we ourselves impart its value using it in everyday life for calculations and transactions. The larger the bitcoin community the more and the bitcoin value. He can not burst at one point, because too many people believe in him!

The US debt have already just passed 1 trillion dollars, and is projected to continue to increase at an alarming rate this year due to the tax cuts (that mainly benefited the corporations and super wealthy). And Trump have suggested that he could just print money to settle it. -_-

If fiat "crashes" (inflates), I guess cryptos would thus become more valuable in relative to those currencies, maybe. Especially if some people loses faith in fiat and puts in more into cryptos and go for the long-term; especially now at this great price.

We can expect or speculate that if fiat crashes and massively inflates, people will lose purchasing power of their money and their savings are going to depreciate. Therefore, they will become poorer all in all, and they will have less spare money to invest in speculative assets like crypto. In that case, the wealthy, while they will definitely have some cash, would rather invest it in gold and other hard assets. So it is difficult to say whether cryptocurrencies will get a serious boost if fiat money like the dollar should fail.

JuniAiko

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Quote from: niteroy on February 06, 2018, 03:07:12 PM

The bubble is the banking system of the whole world, and we do bitcoin ourselves, as we ourselves impart its value using it in everyday life for calculations and transactions. The larger the bitcoin community the more and the bitcoin value. He can not burst at one point, because too many people believe in him!

The US debt have already just passed 1 trillion dollars, and is projected to continue to increase at an alarming rate this year due to the tax cuts (that mainly benefited the corporations and super wealthy). And Trump have suggested that he could just print money to settle it. -_-

If fiat "crashes" (inflates), I guess cryptos would thus become more valuable in relative to those currencies, maybe. Especially if some people loses faith in fiat and puts in more into cryptos and go for the long-term; especially now at this great price.

niteroy

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The bubble is the banking system of the whole world, and we do bitcoin ourselves, as we ourselves impart its value using it in everyday life for calculations and transactions. The larger the bitcoin community the more and the bitcoin value. He can not burst at one point, because too many people believe in him!

Xester

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Quote from: stevano on January 20, 2018, 07:00:29 PM

many people say that bitcoin bubble, honestly I still do not understand what is meant by the term bubble earlier?

until now I am still curious

It is like a bubble where it can expand and then suddenly can popped. But I am sure that it is not like a bubble because bitcoin has been here for almost a decade. And it can be considered as a strong investment so it is not what like other people are thinking. As a newbie and new to cryptocurrency, you might think that way. Panicked about its current price. But I still believe with bitcoin, its price will still goes up.

layoutph

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When someone says "Bitcoin Bubble" it refers to a certain point where Bitcoin will drop almost 60% to 70% of its total value to accelerate to a new higher price. If 20k is the recent top of BTC, then BTC is now on its dip.

Quote from: stevano on January 20, 2018, 07:00:29 PM

many people say that bitcoin bubble, honestly I still do not understand what is meant by the term bubble earlier?

until now I am still curious

Betwrong

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I stand with Ukraine.

Quote from: BitHodler on February 05, 2018, 07:15:12 AM

Quote from: Betwrong on February 05, 2018, 07:03:15 AM

I think that $20k for 1 BTC is still far from the highest limit Bitcoin can reach and even far from the reasonable price which it can get in the nearest future (which imo will be close to $100k).

The future potential of Bitcoin has always been there. Even at sub $1000 levels people were speculating about $100,000 and that's still the same. Short term things are a bit different, and we can't ignore the overbought market.

At that point it was all due to the future market as people were expecting it to be the next big thing in regards to being a price booster. And honestly speaking, potential entry of institutional investors is bullish.

Turns out, just the initial speculation was a major price booster, and everything happened afterwards was nothing more than the market readjusting itself to more appropriate levels. Either buy or keep hodling, and have patience.

I agree with you mostly, but why do you think that there's no chance for the institutional investors to enter into the business? After reading some business articles lately I came to conclusion that many of them considering investing in Bitcoin, especially now when the price is so low that the potential profit from the investment is obvious. I think we can see Bitcoin recovering much earlier than we expected exactly because of their involvement.

amwer

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People who say Bitcoin is a bubble have no idea what a bubble is.
Bubble is when an asset is overpriced.
Bitcoin is growing because people only now are becoming aware of what it is and realizing it's an underpriced asset. That's why there's a rally in price.
If Bitcoin is a bubble, then what about Gold? That you can't divide it easily, send it through the internet or easily store it and transport it.

nightfury

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A bubble is something to do with bitcoin's price at a very high value and one thinks that it will pop (drop its value at a very low price) just like a real bubble that pops when its water contents evaporates, dryness, or air turbulence.

ricardobs

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Quote from: Siopao on February 05, 2018, 09:09:02 AM

Some people compare bitcoin with bubble, due to buble's characteristic of being blown up to its biggest form and there will come a time that it will just burst out. In relation with bitcoin that hit its highest value and noe experiencing its lowest price. But I don't think it will be gone just like a bubble.

Bitcoin is not a bubble, in fact it is at least 70% not a bubble, cause it is mainly determined by the rate of demand which usually drives up the price and crashes the price when people withdraw. Things can be called a bubble, only when they are sold at a price rate that they are not worth. But as for Bitcoin, I believe that Bitcoin is always being sold at a price rate that it is worth.

JCLee

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Quote from: stevano on January 20, 2018, 07:00:29 PM

many people say that bitcoin bubble, honestly I still do not understand what is meant by the term bubble earlier?

until now I am still curious

People say Bitcoin is a bubble because its exchange rate has fallen sharply, causing panic among investors. Alternatively, maybe it is just cynical news about Bitcoin to make the cryptos rate decrease. With the knowledge of cryptocurrencies as well as the needs of users, the next 15 years, when 100% of the transaction will be made on the Internet, indeed the market cryptocurrencies will grow and ultimately replace the fiat currencies.

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