Topic: What is causing the Bitcoin bubble? (Read 2382 times)

Then do you deny that this rise is abnormally fast and that its driven primarily by FOMO? Try to see the real situation that is going on in Bitcoin. It cannot scale, it is in the middle of a "scalability war" between different camps, and we are threatened with a blockchain split because of the incoming UASF this August 1.

By the way to make things clear, when I say bubble I do not mean Bitcoin is a bubble. No far from it. What I mean is the whole cryptocurrency market in general. I should have said "we are in a bubble" instead of "it is a bubble". So meaning Bitcoin is overvalued.

Stocks, bonds and real estate are all at crazy high levels in the USA, Candada and much of Europe.

People are also losing faith in the USD in general, and Trump is a loose cannon.

Its an unstable world. BTC is the perfect speculative investment, even though the actual network isn't in great condition (transaction fees, slow times etc).

You can put any value on it... But the analysts aren't the regular people! To make the price 10k/BTC, each person on the world would have to own about $24 worth of Bitcoins... You see that happening anytime soon?

I don't.

All the bubbles are irrational, they are based on the last fool, nobody wants to stay behind on the rise and that's why the price bursts, how good bitcoin can be divided into fractions, so tant.

So what you are trying to tell here,is it a good thing to invest at the rate or not,i would suggest waiting for a correction before entering bitcoin,but if you have the bank roll and the confidence then you are good to go if you are planning to save for a long time,i could not see any particular bubble formation with bitcoin,they are getting more investors and that is it.

Every rise?  Not quite.  For example:  gold is nowhere near the same price it was 50 years ago. Ditto silver.  Ditto oil. Ditto real estate.  Ditto GE. Ditto Apple is not at its 1985 price. Ditto MSFT.  Etc.

Ditto bitcoin 2017 compared to 2010, 2011, 2012, etc.  Just because some people don't see the utility of, e.g. Bitcoin, doesn't mean it doesn't have value or is a bubble. It just means it is easier to be a critic than a creator.

the interest of the people is also a reason of increasing the price of bitcoin. but the news that we are hearing in favour of bitcoin are also causing the price of bitcoin to increase. i am sure that in near future we are going to hear more and more good news about the favour of bitcoin.

Are you talking about the bubble that started in 2010 at $0.10?  Dollar parity?  Or 2011?  Or 2012? 2013? 2014? 2015? 2016? or 2017?   Assuming each time is a bubble has been a strategy that makes it easy to miss gains in fiat terms.  Every time the price hits new highs (and I think Nov/Dec 2013 was an artificial MtGox created high so there have been plenty of new highs or at least 1 year highs in between) articles and people say "bitcoin bubble" this and "bitcoin bubble" that.   Anyone who thought it was a bubble at any of those times and bought (or mined) and held, has done well.  

Usage is increasing - whether it is for transactions, "digital gold" wealth preservation, hedging, trading, or whatever.  Likewise, new supply decreases at each halving, 1800 new BTC/day now, 900 new BTC/day in less than 3 years.  It is simple supply and demand which sets the price at the margin.  Sometimes people panic and the price drops from $27xx to $19xx like it did a few weeks ago and the people who panic sold at $19xx now missed out on another $900-$1000/coin.  You see posts from people who sold at any point between 2009 and now wishing they hadn't tried to time the bitcoin market.

It seems you misunderstand the context of hype in there.  It is not a hype of baseless stuff.



With all the adoption and good news about bitcoins, certainly the hype is being produced.   Hype is not a bad thing and it is needed to spread out awareness through out the globe.

Isn't that too hard to manipulate the price if there is a $46,863,276,862 market capitalization now? I think that it is because media attention and more people recognize it and also many of them buy it to sell it later for more.

Bitcoins is not bubble but it is increasing the value of bitcoins, because many people around the who choose bitcoins
for investing into it than other instrument of Investment, bitcoins price increased because it is limited amount of bitcoins. We know the law of demand and supply that is why bitcoins is increasing now.

I dont think you can compare investing in Crypto currencies to
investing in stocks and commodities. Crypto or to be general Bitcoin
is accessible to small money holders and large, anybody after jumping
through the usual security hoops can invest $50 or without any
security or identity verification for $15.

Lets see how anyone fairs out investing in bank shares with that amount!

Its because of its accessibility why bitcoin's value fluctuates and not everyone
is involved to get rich quick there are plenty of long term investors.

So far we have some analysts saying that bitcoin is totally undervalued and the true value of BTC should be at least $10000
They based this opinion of bitcoin's ability to be used as ultimate ledger, primary for notary services.
If we consider that bitcoin is not only a ledger for storing data, but new economic concept, monetary system and store of value at once?
I am not sure if we are longer in a bubble or it is just investors realized that bitcoin has potential.

Assuming this increase is a bubble, I believe the one that caused it is the good news that is coming from the development and adoption of Bitcoin in a different country.  Now that July is coming, many speculators think that bitcoin would probably double in price just like what happened when Japan accepted Bitcoin.

I think you are wrong this time, bitcoin is not in a bubble right now. New money have actually flown into crypto world. If you look at other alts you will find similar surge in them that suggest new investors are interested in cryptocurrency as a whole and not only in bitcoin, but to buy all of the other alts they have to buy bitcoin that could be the reason behind this massive pump we have.

Well to me there is good bubbles and bad bubbles....if it bubbles to 10k and drops to say 6k ...I can live with that

slow adoption and price would be best..but bitcoin does not seem to work that way it is all drama

so pump (bubble) to 10k and dump to 6k works....IF the fundamentals work ..and at 6K it resumes its climb steadily (non-bubble)

or balls to the wall (bubble) as a repeat....

crap can't go up forever.it can go up too fast and still recover and go up too fast again in this bubble like cycle

anyway just saying.....its a bubble in my view because of the speed it is going up ..but hell ..... when it busts are

the fundamentals good enough that however it dumps ..is it just to catch it breath and resume again

seems to be the pattern..I certainly don't see a bubble to 5k and then crash to 1k...but I am expecting if it did get to 5k
a crash to say 3.5k and btc being btc and loving sideways sit there for say 3-4 months between 3.5 and 4k while it
digests at this price..then start the merry go round again for the next great overshoot up and a repeat

btc seems to be how it works

(take all with caution I say...at one time I drank the BFL kool aid..thus am tainted by often being wrong)

Well for this newcomers are believing that this could be the break out japan and australia is a well established countries and with them joining this project many things will be expected. Just wanted to really make sure that this could go up and not just a hype always research and do your homework.

I think it's stupid to asume it's a bubble how do you know? Maybe it is maybe it isn't. Maybe some big bank has 2 trillion sitting ready to pump into BTC if that was true then this IS NOT A BUBBLE so your statement is wrong. But maybe it is. I guess it bothers me that everyone is just statiing it as a fact that we are in a bubble when you damn don't know. Time will tell us if it pops then it's a bubble.

What is causing the bitcoin bubble you say?

1) people holding BTC

2) people adopting BTC

3) places where having BTC makes real sense (Venezuela, South Korea, Japan, India, China, etc etc)

As to frigging WHY all this is going on at the level that it seems to happening (perhaps FOMO) I've not a clue.

But if people are holding ..mined or otherwise....and more and more folk are adopting with 80% of coins already made...

and hyper adopting in some places due to the nature of their countries issues/plans/desires

well hell it is zoom, zoom time

All the above means it is fulfilling a need for those doing the above actions

but at the very least..it is like way, way more folk are coming on board and or holding at a rate that is unexpected by me

so heck....it is just a likely to hyberbolic as not ..especially if adoption ..or what do they call it 'market growth' continues

at this rate...hell...it is obvious it is providing some kinda relief to the countries mentioned above to boot

for all I know this very fact of NON gov't controlled currency is not its biggest draw now...as a store of value

so I wonder...what if even more come on board from word of mouth from these countries with like-minded issues and desires?

assuming btc and crypto offer some real relief...hell we could be at 5,000 usd BTC by next month at this rate

as a holder this is great thou the pucker factor at these prices is getting pretty intense

I'm out of ideas, no idea why it is happening as I guess above...but hard to ignore it is happing as we speak

boom or bust, chump or champ, we will be the first to know I guess...bubble it may be..but hell at this rate it may bubble to 8k and
fall back to 4k ...where it breaks is at anyone's guess right now

wild stuff

Well I guess RSK have something to do with this increase, aside from that Bitcoin had been in a bullish position for months now.  The big company in Japang joining the bitcoin blockchain technology, and the upcoming Australia acceptance.  This probably hype Bitcoin and bring FOMO to new investors that result in this spike in price.