Topic: Why Bitcoin is not a bubble! - page 5. (Read 548 times)
Here we have a strong argument that supports the fact that Bitcoin is not like the traditional bubble that can burst and will just be gone into the air without any chance of it coming back...or essentially defining the bubble as a one-time phenomenon that can eventually and suddenly just disappear. There is no question that many times Bitcoin do resemble like the bubbles in the past but time and time again Bitcoin had shown its strong resiliency and that capacity to come back against the current. Anybody can have the liberty to call Bitcoin as just another bubble but within its colorful 10-year history lies the answer to the question that some people can be asking. How many financial bubbles in the past was able to withstand the predictions of doom and gloom? I think that on this regard it is Bitcoin that is an exemplary example. And that is leading us to think that there must be something with Bitcoin making it a great survivor, a leader and a great success!
Most of the people around the world argue that bitcoin is a bubble. Bubble just like the one we saw with dot com or the real estate bubble. So here I have drawn a comparison of BTC with all of them. Have a look this is what a definition of bubble looks like as per economists.
source: medium.io
This is how a bubble looks defined with different phases. Here is the example of the dot com bubble which went exactly like this:
source: wikipedia
This was how the US Real Estate & Japanese Real estate bubbles looked like:
source: thenewmortagecompany
This was how the Tulip Mania bubble looked like:
source: medium.io
You can see how almost all the bubbles have followed the same path as that of classic bubble example. Now let me show you chart of BTC as what it looked like an year ago when the price were on a continuous down trend:
However this phase is completely gone and now we have seen some market strength in 2019 which clearly depicts why BTC is not a bubble have a look at this chart below. Compare it with the first chart and then you would feel that Bubble phase is gone:
source: forbes
It clearly shows that unlike the other bubbles which burst and moved around their mean after the dumps. BTC is still trying to achieve greater heights and is working pretty fine. Moreover second fact is that even if this was a bubble now that phase is gone and BTC is moving as per it's intrinsic value. So i don't think it's a bubble anymore.
source: medium.io
This is how a bubble looks defined with different phases. Here is the example of the dot com bubble which went exactly like this:
source: wikipedia
This was how the US Real Estate & Japanese Real estate bubbles looked like:
source: thenewmortagecompany
This was how the Tulip Mania bubble looked like:
source: medium.io
You can see how almost all the bubbles have followed the same path as that of classic bubble example. Now let me show you chart of BTC as what it looked like an year ago when the price were on a continuous down trend:
However this phase is completely gone and now we have seen some market strength in 2019 which clearly depicts why BTC is not a bubble have a look at this chart below. Compare it with the first chart and then you would feel that Bubble phase is gone:
source: forbes
It clearly shows that unlike the other bubbles which burst and moved around their mean after the dumps. BTC is still trying to achieve greater heights and is working pretty fine. Moreover second fact is that even if this was a bubble now that phase is gone and BTC is moving as per it's intrinsic value. So i don't think it's a bubble anymore.
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