Topic: is it a bubble? - page 4. (Read 898 times)
Many people think it's a bouble cuz there were many situations with such things like bitcoin is and now the credit of people believe is not big.
Maybe someone thinks of it as a bubble because the price of each altcoin has a fluctuated movement So that the market when it is able to become red and green from where one assumes that altcoin is not always increased continuously.
It's a metaphor for an asset that balloons so fast, increasing in size (price) and then suddenly bursts with nothing left (a crash). They can call it what they want but for me, it's not a bubble since the price increase is based on a global market with its own ecosystem. It's value is determined by the people and there is use for it.
The same as it is impossible to every body like you, it is impossible to prove everybody that bitcoin is not a bubble. Both sides in this argue have their own proves with which it is hard to fight sometimes. But if you asking me about the current drop, no it's not a bubble. If it would be a bubble as we know it in economical sense, everything will happen in a moment.
Citing a well-worn comparison to the so-called “tulip bubble,” Shiller said that bitcoin has no value outside of the “common consensus that it has value,” which makes it different from gold and other commodities.
This is a funny comparison, as gold is one of the rare assets that also only have value because of the common consensus that it has value. Gold is economically essentially almost useless. It is only valued, because of the common consensus that it has value.
As to the OP: yes, of course it is a bubble, and yes of course it burst. Like in 2011, and in 2013. And like the stock market in 1929. And like the housing prices in 2007. And like the dot-com bubble in the 90-ies. Of course. It is made to bubble. That's what speculative finance is all about.
Gold has inherent value in that it is used in industrial, medical, and other fields. Absent people's consensus that it is a store of value, it still has practical use which gives it a baseline value, which is not the case for Bitcoin. Bitcoin is purely speculative and has zero inherent value. Gold also has thousands of years of history as a valuable asset, so it is no longer the case that everyone just decides it has value. For centuries before you've been alive, gold has had value. Gold isn't speculative like bitcoin is in that you can be reasonably sure that gold will continue to have value in the future. The same is not true for an asset like bitcoin that has been around for only 10ish years.
I support this stance since this is what I mostly say myself
Though I have to add a small but important commentary here. Gold's inherent value mostly consists in its direct use as jewelry. I certainly understand that defending your position (and mine, for the record, since I share it with you here) by emphasizing the use of gold in industrial and medical fields is a lot easier but it is not required since you can't argue with the numbers. And the numbers are that the jewelry industry is responsible for over 50% of the global demand for gold, over 35% of gold is used for investment purposes (central bank gold reserves as well as the IMF stash and private investments), and only around 8% is used in electronics, with other fields sharing the leftover. On the other hand, Bitcoin has inherent value too, which is called transactional utility, but today, with its extortionate fees and infinitely long confirmations, it is minuscule and utterly irrelevant
Sure, jewelry is a large application of gold, but its use in jewelry is because of the value. It's a chicken/egg argument. Did gold have value because it is used in jewelry or was it used in jewelry because it had value? Like many precious/rare elements, it's use in jewelry came about as a function of its value as a means to display wealth. You see the same thing with diamonds, which are used in jewelry because the supply has been monopolized and artificially restricted to create a perception of value. Absent a consensus of value, they wouldn't be used in jewelry. Because jewelry's purpose is to display wealth, value is a prerequisite.
Personally, I don't think it is a chicken and egg argument or problem
And specifically with respect to gold. It is debatable with diamonds since diamonds are just pieces of glass to most people. But it is not so with gold. And I think that it can be said with certainty that gold is used in jewelry because of its value which stems directly from its qualities that are so immediately and unreservedly appealing to the vast majority of people, I mean its shine and luster, its nobility and indestructibility, whatever. There are many materials and precious metals which are way more expensive than gold but they are not used in jewelry since they lack the appeal of gold, which is both unique and universal
Citing a well-worn comparison to the so-called “tulip bubble,” Shiller said that bitcoin has no value outside of the “common consensus that it has value,” which makes it different from gold and other commodities.
This is a funny comparison, as gold is one of the rare assets that also only have value because of the common consensus that it has value. Gold is economically essentially almost useless. It is only valued, because of the common consensus that it has value.
As to the OP: yes, of course it is a bubble, and yes of course it burst. Like in 2011, and in 2013. And like the stock market in 1929. And like the housing prices in 2007. And like the dot-com bubble in the 90-ies. Of course. It is made to bubble. That's what speculative finance is all about.
Gold has inherent value in that it is used in industrial, medical, and other fields. Absent people's consensus that it is a store of value, it still has practical use which gives it a baseline value, which is not the case for Bitcoin. Bitcoin is purely speculative and has zero inherent value. Gold also has thousands of years of history as a valuable asset, so it is no longer the case that everyone just decides it has value. For centuries before you've been alive, gold has had value. Gold isn't speculative like bitcoin is in that you can be reasonably sure that gold will continue to have value in the future. The same is not true for an asset like bitcoin that has been around for only 10ish years.
I support this stance since this is what I mostly say myself
Though I have to add a small but important commentary here. Gold's inherent value mostly consists in its direct use as jewelry. I certainly understand that defending your position (and mine, for the record, since I share it with you here) by emphasizing the use of gold in industrial and medical fields is a lot easier but it is not required since you can't argue with the numbers. And the numbers are that the jewelry industry is responsible for over 50% of the global demand for gold, over 35% of gold is used for investment purposes (central bank gold reserves as well as the IMF stash and private investments), and only around 8% is used in electronics, with other fields sharing the leftover. On the other hand, Bitcoin has inherent value too, which is called transactional utility, but today, with its extortionate fees and infinitely long confirmations, it is minuscule and utterly irrelevant
Sure, jewelry is a large application of gold, but its use in jewelry is because of the value. It's a chicken/egg argument. Did gold have value because it is used in jewelry or was it used in jewelry because it had value? Like many precious/rare elements, it's use in jewelry came about as a function of its value as a means to display wealth. You see the same thing with diamonds, which are used in jewelry because the supply has been monopolized and artificially restricted to create a perception of value. Absent a consensus of value, they wouldn't be used in jewelry. Because jewelry's purpose is to display wealth, value is a prerequisite.
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
until now I am still curious
When you say an asset is a "bubble", it means that it would not prosper or last for a long time. It may gain its peak quickly, but after a while it would be doomed and plummet in value similar to how a bubble may abruptly float and then pop. I think that description is not applicable to bitcoin because it has been present for a while now, for about a decade to be exact. And although its value is going up and down at a very quickly, I think its just one of its features because its not backed by any reserves like the traditional currencies, which pumps value on it readily to avoid the effect of inflation.
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
until now I am still curious
When you say an asset is a "bubble", it means that it would not prosper or last for a long time. It may gain its peak quickly, but after a while it would be doomed and plummet in value similar to how a bubble may abruptly float and then pop. I think that description is not applicable to bitcoin because it has been present for a while now, for about a decade to be exact. And although its value is going up and down at a very quickly, I think its just one of its features because its not backed by any reserves like the traditional currencies, which pumps value on it readily to avoid the effect of inflation.
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
until now I am still curious
This means that while there are new people ready to invest in bitcoin, he will live. But as soon as these people do not become it will collapse.
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
until now I am still curious
A bubble is an asset whose price rises faster than the value proposition should dictate. Since bitcoin is an asset with no inherent value, the value ostensibly comes from one of two places: 1) utility to perform a useful function (value transfer or store of value) or 2) speculation that someone in the future will be willing to buy the asset off of you for more than what you paid for (the later idiot fallacy). Bitcoin was supposedly created to fulfill number 1, value transfer/store of value, but it is much MUCH more widely used for number 2, which makes it prone to inflated price due to hype, FOMO and the collective delusion that the price cannot go down for [insert any number of unsound reasons].
Because there is no reliable mechanism for shorting bitcoin (an equilibrium force in the market), price is pressure primarily builds in one direction without a reliable counter force (someone betting against the price by shorting), and this further tends to skew assets like this into bubble territory. The bubble pops much more violently in these cases than assets that can be shorted easily because the buying pressure suddenly disappears and then there is a rush to get out of the asset by dumping coins on a smaller pool of buyers.
Quite decent explanation. I also believe that bitcoin has an additional value for it´s original intended use, that is, a peer to peer payment method via a decentralised coin.
I like to think of it as a self aware bubble. Most of us know that this growth is probably unsustainable, but we still want it to grow to trillions of dollars in total market cap.
Doubtless we are really hopping that bitcoin will rise in price again we trust bitcoin but sometimes the fallen price use to scare people to use bitcoin so I think it is not good to lose patience at this time, some bitcoin haters are calling bitcoin as a bubble but it is not a bubble it is reality, many of people are waiting to have bright future with bitcoin so how can we say that bitcoin is a bubble. It is not a bubble but it is treasure that will give you a lot of money. 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
until now I am still curious
They are saying that this is a bubble mainly because, last year the price of Bitcoin have gone up way up ($19k ~ $20k at most) reaching almost three times the price of Bitcoin on the year 2016. But suddenly after some months or weeks, the price of Bitcoin have drop down to $11k ~ $10k. Yeah we know it is a big drop to not to be noticed.
So I was saying, when you create a bubble it will float way up into to the air because its so light but at a certain height it will suddenly explode, and its excess will drop into the ground. That's why they're saying that it is a bubble.
I like to think of it as a self aware bubble. Most of us know that this growth is probably unsustainable, but we still want it to grow to trillions of dollars in total market cap.
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
Bubble is a situation where the of value of a coins increase without a serious course or unusual increase the value or price of coins. And the term is mostly use by market speculators.until now I am still curious
At the same time we cannot ignore the importance of bubble in market because it is the only way people will realize the real potential of one commodity because people start realizing like even that much higher prices will be possible for one commodity only after a bubble happened.
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
Bubble is a situation where the of value of a coins increase without a serious course or unusual increase the value or price of coins. And the term is mostly use by market speculators. until now I am still curious
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
Bubble is the rapid increase and dicrease of bitcoin price, bubble is normally a specified action used on bitcoin business, it is only used by the bitcoin authorities for the balancing system of different transactions on bitcoIn.until now I am still curious
The fact that it is a name of a currency or investment doesn't prevent it from being a bubble. Indeed, it has changed lives of many thousand people, but any bubble does exactly that. With Bitcoin, the only way to get millions today is to buy low and sell high. But those who can't sell higher than they bought will be left holding the infamous bag. Are you one of them? I guess you are pretty much in denial and can't see or rather won't see what's going on.
The harder will be the fall.
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
Bubble is the rapid increase and dicrease of bitcoin price, bubble is normally a specified action used on bitcoin business, it is only used by the bitcoin authorities for the balancing system of different transactions on bitcoIn.until now I am still curious
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
until now I am still curious
The term bubble is just another word for the volatility of bitcoin. It surge up and it might blow away like a bubble the would disapear in an instant. But i believe that it is not the case for bitcoin, since it is the most reliable cryptocurrency as of today. Hopefully not a bubble because if so, many would break their emotions on it.
These people should focus on the publicity of their coins rather than spreading negativity about bitcoin. Bitcoin is one of the most astonishing inventions of this century.
People who find it difficult to understand the concept of digital currency and who failed to invest in bitcoin currecy when it was cheap are calling it a bubble. When any currency is manipulated by a group of people for their personal benefit the unnatural and sudden increase or decrease in such curremcies is called as bubble. Bitcoin is a decentralized currency so such manipulation is impossible. Bitcoin is increasing continuously since last two years. And even after crossing $19000 mark, it is rolling down slowly not suddenly. It shown bitcoin is not a bubble.
For the sake of historical accuracy, after crossing the $19000 mark Bitcoin crashed over 40% in a couple of days. I don't know how anyone would call that "rolling down slowly not suddenly". It was the crash of all recent crashes but with so many whales cashing out (Roger Ver and his team of minions), there was little that could have been done to prevent it. Besides, being a decentralized currency, which is debatable on its own, doesn't prevent coins from being accumulated in few hands. There are different dimensions of decentralization and in some of them Bitcoin looks pretty bleak.
People who find it difficult to understand the concept of digital currency and who failed to invest in bitcoin currecy when it was cheap are calling it a bubble. When any currency is manipulated by a group of people for their personal benefit the unnatural and sudden increase or decrease in such curremcies is called as bubble. Bitcoin is a decentralized currency so such manipulation is impossible. Bitcoin is increasing continuously since last two years. And even after crossing $19000 mark, it is rolling down slowly not suddenly. It shown bitcoin is not a bubble.
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