Topic: What is causing the Bitcoin bubble? - page 2. (Read 2390 times)
Last time I read news that Japan have legalized bitcoins in their country,and most of the Japanese people love investing and most of their life savings are held in investments, so many Japanese people are interested in buying bitcoins and thus the Japanese exchanges also show this fact that there is a great demand for bitcoins in Japan, by watching the price chart of Japanese exchanges. Last time I checked there was a $100 difference between other exchanges and Japanese exchanges where bitcoin was trading very high and demand is still pretty much high.
The first thing that comes in everyones mind when somebody ask about why bitcoin price bubble is only the demand in bitcoin increases, many companies and countries accept bitcoin as another payment option, and holding it for a long time.
i agree with you, thats what i am thinking also.
there are so many companies already who accepts bitcoin and this will lead to the increase of the demand.
yet low supply because of the fact that some have bought and just plan to hold it.
Now it is evident that Bitcoin price is at an all-time high. Prices have risen steeply, far too fast for my liking. I don't think such a growth is sustainable. The bubble is going to break very soon.
The notion of breaking bubble in a short time is heard for a long time and in the past nine months the price of bitcoin has always moved up and nothing happened and the price still keeps on moving higher,where is the bubble and when is it popping,we are seeing more people investing in bitcoin and so is the reason we are seeing higher valuation and not a simple bubble which can be broken altogether.
Maybe in my own perspective the hype that we are currently seeing right now are caused by big countries adopted bitcoins as a mainstream payment.Big exchange are built on those countries which helps bitcoins price to pumps up
Now it is evident that Bitcoin price is at an all-time high. Prices have risen steeply, far too fast for my liking. I don't think such a growth is sustainable. The bubble is going to break very soon.
But what is causing such a price hype? I speculate this phenomenon is caused by the increase in the number of Bitcoin users. Hence, demand increases and supply dwindles. Thus price increases. Are there any other factors that could add to this price hype?
This is standard argument against bitcoin - the price of BTC has risen too fast, therefore it is no sustainable, and it must fall.But what is causing such a price hype? I speculate this phenomenon is caused by the increase in the number of Bitcoin users. Hence, demand increases and supply dwindles. Thus price increases. Are there any other factors that could add to this price hype?
But as you said yourself - prices are high because number of bitcoin users is growing - this would indicate organic growth and not a bubble!
Bubble would mean totally artificial price spike - caused by actions of market speculators, whales and bots.
Scaling resolution is upon us, also Japan legal adoption happened, Australia will adopt BTC in July, Russians changed their anti-crypto stance etc.
Now it is evident that Bitcoin price is at an all-time high. Prices have risen steeply, far too fast for my liking. I don't think such a growth is sustainable. The bubble is going to break very soon.
But what is causing such a price hype? I speculate this phenomenon is caused by the increase in the number of Bitcoin users. Hence, demand increases and supply dwindles. Thus price increases. Are there any other factors that could add to this price hype?
But what is causing such a price hype? I speculate this phenomenon is caused by the increase in the number of Bitcoin users. Hence, demand increases and supply dwindles. Thus price increases. Are there any other factors that could add to this price hype?
This is a good question. Most of the people here are so in denial that they won't even admit that this is a bubble, so it is refreshing to hear somebody who does recognize the reality of the situation.
The reason for the bubble is the nature of bitcoin investors. I wrote a post sort of related to this recently:
http://www.demoinvestor.com/articles/00000001
Organizations and fund managers on Wall Street have not begun to consider Bitcoin as a reasonable investment as far as risk versus reward goes, and rightfully so. Experienced investors prefer assets that either have a long history, or whose value can be measured by fundamental data about the asset. Bitcoin is severely lacking in both of these areas. As a result, the price is driven up and down by retail investors trying to get rich quick, who do not know how to invest. They fall into buying and selling frenzies far more easily than institutional investors would, which causes snowball effects to build up easily.
This basically describes what I believe is the reason. Bitcoin has historically consistently formed bubbles. This is because of the nature of bitcoin investors. They are retail investors who want to get rich quick. They are inexperienced and usually investing small amounts of money. They are basically just weaker hands who jump on board with buying and selling frenzies very easily.
If you read the article, you'll see that I mention a solution. The solution is that bitcoin needs to earn the trust of institutional investors. I am not sure that there is not a whole lot that can be done to achieve this other than wait.
There are numbers of factors related to this bubble I reckon,
1. The advancement of technology and digitalisation of everything
2. Japan accepting bitcoin.
3. The momentum of all of this.
I hope the bubble doesn't burst soon and we crypto users lose all our money, but I definitely think it will burst in the next 5-10 years.
The value of Bitcoin will increase more, but not fast as now. One currency can't increase always, need time for down and wait good time for increase again. This bubble Bitcoin and Cryptocurrencies will breakdown, but I can't know when 1. The advancement of technology and digitalisation of everything
2. Japan accepting bitcoin.
3. The momentum of all of this.
I hope the bubble doesn't burst soon and we crypto users lose all our money, but I definitely think it will burst in the next 5-10 years.
Actually this is indeed such a hype, but you need to know that the system in the bitcoin is very awesome and I'm sure in the future will be adopted or bitcoin technology used by all companies in the world. Indeed one of the factors that makes the price very high bitcoin is because of the growing number of requests to get the bitcoin, while stock available is absolutely not appropriate from the requests always come every second.
There are numbers of factors related to this bubble I reckon,
1. The advancement of technology and digitalisation of everything
2. Japan accepting bitcoin.
3. The momentum of all of this.
I hope the bubble doesn't burst soon and we crypto users lose all our money, but I definitely think it will burst in the next 5-10 years.
1. The advancement of technology and digitalisation of everything
2. Japan accepting bitcoin.
3. The momentum of all of this.
I hope the bubble doesn't burst soon and we crypto users lose all our money, but I definitely think it will burst in the next 5-10 years.
I recon its a number of factors causing the Bitcoin Bubble,
The recent news articles relating to Japan, Australia, Russia and the U.K is all good
news and adds to the exposure, hype and excitement which in turn has to create new investors.
I also think existing crypto users are buying in possibly thinking that the value is
not going to fall and that its only going to rise, similar thinking prior to the quick down shift last month!
its all adding to the momentum . . .
The recent news articles relating to Japan, Australia, Russia and the U.K is all good
news and adds to the exposure, hype and excitement which in turn has to create new investors.
I also think existing crypto users are buying in possibly thinking that the value is
not going to fall and that its only going to rise, similar thinking prior to the quick down shift last month!
its all adding to the momentum . . .
The first thing that comes in everyones mind when somebody ask about why bitcoin price bubble is only the demand in bitcoin increases, many companies and countries accept bitcoin as another payment option, and holding it for a long time.
Its hard to say what is causing a bitcoin bubble.
The same thing I guess as with any other rapid price explosions .It happen to be the self fulfiling prophecies and a fear mongering of not using the option to make profits.
People are dazzled by emotions. Mostly people see others gaining money and they are getting terribly envious about their peers. And the greed grows in them to enourmous proportions.
Vuala. The recipe for the bubble - human sinful nature.
The same thing I guess as with any other rapid price explosions .It happen to be the self fulfiling prophecies and a fear mongering of not using the option to make profits.
People are dazzled by emotions. Mostly people see others gaining money and they are getting terribly envious about their peers. And the greed grows in them to enourmous proportions.
Vuala. The recipe for the bubble - human sinful nature.
Now it is evident that Bitcoin price is at an all-time high. Prices have risen steeply, far too fast for my liking. I don't think such a growth is sustainable. The bubble is going to break very soon.
But what is causing such a price hype? I speculate this phenomenon is caused by the increase in the number of Bitcoin users. Hence, demand increases and supply dwindles. Thus price increases. Are there any other factors that could add to this price hype?
Commonly people will really answer about supply and demand because this is the common thing which do makes a certain price increase,when theres a demand then prices would go up and thats the thing is happening into bitcoin.Adoption is on the move which bitcoin is already been gradually being accepted by some countries already how much more on this upcoming august on which another country would decide to adopt bitcoin.Expect for the prices to increase even more on upcoming months. But what is causing such a price hype? I speculate this phenomenon is caused by the increase in the number of Bitcoin users. Hence, demand increases and supply dwindles. Thus price increases. Are there any other factors that could add to this price hype?
I am not an economic student nor am I an expert in Bitcoin but what I understand is that bubble burst can happen when there is an overabundance of speculators and these people can suddenly go panic once the value of Bitcoin dip a little. However, this has been part of the nature of Bitcoin that is why we are seeing corrections from time to time which is kinda healthy actually. I prefer to hold to my Bitcoin no matter what, at least for the next two years.
I don't think it's a bubble but what is happening is that smart investors are moving their portfolios away from the massive housing market bubble before it pops. Crypto is a gud hedge.
Prices are now rising too fast, far beyond the previous expectationsI think someone is manipulating the price
Now it is evident that Bitcoin price is at an all-time high. Prices have risen steeply, far too fast for my liking. I don't think such a growth is sustainable. The bubble is going to break very soon.
But what is causing such a price hype? I speculate this phenomenon is caused by the increase in the number of Bitcoin users. Hence, demand increases and supply dwindles. Thus price increases. Are there any other factors that could add to this price hype?
But what is causing such a price hype? I speculate this phenomenon is caused by the increase in the number of Bitcoin users. Hence, demand increases and supply dwindles. Thus price increases. Are there any other factors that could add to this price hype?
Indeed, you are completely right.
Bitcoin is defintiely in a bubble state right now. However we may see further pumps come before this bubble will pop, and i've been basically saying this since we hit $2,000 and it was evident that bitcoin was in a bubble but i believed that the bubble will see more fuel to it.
I don't think it's a bubble but what is happening is that smart investors are moving their portfolios away from the massive housing market bubble before it pops. Crypto is a gud hedge.
Could be this. However what's more likely is that it's 90% speculation. Housing is in a bubble as well, and i would argue that in a bubble far more advanced than bitcoin and when it pops it'll be absolutely catastrophic.
I don't think it's a bubble but what is happening is that smart investors are moving their portfolios away from the massive housing market bubble before it pops. Crypto is a gud hedge.
bitcoin bubble is always caused by china money and new money 
I have seen people here deny that this is a bubble. Have we not learned from the bubbles of the past? In every rise there will always be a fall as was with the Tulip Mania, and this could be the Tulip Mania of our time.
I know Bitcoin gives the world some utility but surely this rise is pumped by the irrationality of people thanks to FOMO.
I know Bitcoin gives the world some utility but surely this rise is pumped by the irrationality of people thanks to FOMO.
claiming it is a bubble without any rational discussion and purely because price has gone up doesn't make any sense.
if it is a bubble then what do you call all those dips, small dips and bigger dips all the way up?
have you forgotten that price dropped hard not so long ago from ~$2700 to below $2000? then what was that if not a correction?
I have seen people here deny that this is a bubble. Have we not learned from the bubbles of the past? In every rise there will always be a fall as was with the Tulip Mania, and this could be the Tulip Mania of our time.
I know Bitcoin gives the world some utility but surely this rise is pumped by the irrationality of people thanks to FOMO.
I know Bitcoin gives the world some utility but surely this rise is pumped by the irrationality of people thanks to FOMO.
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