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Topic: Why does certain people called Bitcoin as bubble investment? - page 2. (Read 390 times)

member
Activity: 210
Merit: 10
since that bitcoin is a volatile currency, they say that bitcoin is bubble since the future of the bitcoin is uncertain. But for me, I will invest in bitcoin since there is a lot of people still believe in this new currency.
newbie
Activity: 161
Merit: 0
Since we all know that currently, the price of BTC is unstable. So there are certain articles call Bitcoin as bubble investment. May I know the reason why does it called a bubble? Why is that term is used in Bitcoin?
People call it the bubble because of its rapid growth when compared to the other type of investment and it may be overvalued by the huge demand once the people realize that bitcoin is not worth to invest then it burst which is called bursting.But in cryptocurrency, the price is too volatile but the people telling about bubble burst since 2011 because they can't accept the huge growth of it.But still, the burst didn't burst I hope it will not forever.
It is true that Bitcoin's growth is growing rapidly and Bitcoin's price from year to year is always high, even if it is only temporary then it will rise again in an indeterminate time.
member
Activity: 236
Merit: 10
There are some asset that have assurance of appreciating in future but bitcoin just base it value appreciation and depreciation on speculation. The price can change at any time That is why it is refer to as bubble.
newbie
Activity: 90
Merit: 0
Since we all know that currently, the price of BTC is unstable. So there are certain articles call Bitcoin as bubble investment. May I know the reason why does it called a bubble? Why is that term is used in Bitcoin?

main reason would be the lack of understanding what cryptocurrencies are, those comments tend to come from skeptics and or people who missed out on the early stages of investments. besides bitcoins seems to be highly volatile, this sparks the rumours that is it an investment bubble which will burst, comparing the whole situation to the infamos tulipmania.
copper member
Activity: 182
Merit: 0
Because the price has gone up very fast, and it is usually the case that the price grows fast, then it drops even faster.
full member
Activity: 490
Merit: 100
i think it is easy to explain why people call bitcoin is a bubble, look at the price of bitcoin now and compare it with the price in 2010, we will know bitcoin price has risen super fast in just few years, that is completely crazy to a currency, so anything goes up too fast will go down very quick, so many people lost their trust on bitcoin and call it a bubble.
jr. member
Activity: 266
Merit: 1
Because the more people putting money in the more it goes up.  And when people take money out the price goes down. 
newbie
Activity: 128
Merit: 0
Bitcoin - fever or "bubble"?

Since the bitcoin wave in 2014 for more than $ 1,000 per Bitcoin, by the end of 2017, investors and financiers will have witnessed the rise of this digital currency as value continues. increased to $ 20,000.
newbie
Activity: 84
Merit: 0
The project KS monitor has its own training course includes a methodical guide video and books.
full member
Activity: 308
Merit: 100
I think its bitcoin does not have an intrinsic value.
Hey, dude it bitcoin. And Bitcoin is a cryptocurrency. The value of all cryptos is always fluctuating it doesn't have any constant value. They call bitcoin as a bubble investment because it's price always fluctuates. So in it, there is lot more risk included in it, so   act  as bubble itself.
member
Activity: 434
Merit: 10
for actual bitcoin users meant by bubbles is bitcoin prices are able to provide a high exchange rate even not infrequently the user was surprised, bitcoin price bubble to make more and more demand from day to day.
 
newbie
Activity: 56
Merit: 0
People may call it bubble because firstly it rose so big and now the prices are not stable.
the price is falling-increasing.
and there is big possibilty that it can go more low and burst up like bubble.
full member
Activity: 770
Merit: 113
real estate is a bubble investment
yes houses are real. they exist. they have utility and function.. but the price.. well thats the bubble

when a price increases not due to function. not due to cost of creation. but purely due to speculation... that is a bubble

saying something is in a bubble is not saying the item/asset is fake. its just saying its probably over priced because there is no good reason to explain the price compared to true value, and its likely that the price is gonna burst. and go down to a lower level that can be explained compared to true value

usually bubble is screamed out at the end of a bull(up) and about to go bear(down)

Historically though, hasn't the demand for BTC steadily increased? As more people begin to understand the technology, I can only assume the demand will grow. Will the price of Bitcoin ever drastically fall off? I think that if Bitcoin can become accepted as a common world currency, we may see a major reduction in price but only as a correction to the death of fiat currency.

the PRICE.. is not 100% VALUE

imagine it like a bathtub of water..
as the waterline increases steadily(true value) it stirs up the soap(speculation) and you see a load of bubbles above the water line.

when the bubbles burst, you still have the water line.
the water line is the true underlying value, the bubbles ontop is just the vapour/air ontop that cannot carry weight and will burst if peopl poke at it

This is the concept that needs to be straightened out. Some people think if the bubble burst then bitcoin price will be 0, whereas the burst is a significant price decline after reaching the point of saturation. Though it drops dramatically, it does not make it completely worthless, as you say, it will only be the original price.
full member
Activity: 224
Merit: 101
Because they will not be the early adopters ...Who missed out an chance when it was cheap

There is a lot of people who said that bitcoin is a bubble investment and a lot of them know bitcoin ever since it was first released so how can you say that they missed it? And I think those people do not need to invest on digital currencies just to be a millionaire because they are already millionaires or maybe billionaires.

And on other hand its purely Misconception...Lot of them dont understand how bitcoin or an blockchain works

Bitcoin is the first digital currency after the many failures. People will obviously want to know more about this digital currency and the reason these people say something like that that means they know something. It may be true, it might be wrong, all I know is that I am earning and that is a good thing for me.
member
Activity: 270
Merit: 10
Since we all know that currently, the price of BTC is unstable. So there are certain articles call Bitcoin as bubble investment. May I know the reason why does it called a bubble? Why is that term is used in Bitcoin?

Because they will not be the early adopters ...Who missed out an chance when it was cheap

And on other hand its purely Misconception...Lot of them dont understand how bitcoin or an blockchain works
legendary
Activity: 4270
Merit: 4534
real estate is a bubble investment
yes houses are real. they exist. they have utility and function.. but the price.. well thats the bubble

when a price increases not due to function. not due to cost of creation. but purely due to speculation... that is a bubble

saying something is in a bubble is not saying the item/asset is fake. its just saying its probably over priced because there is no good reason to explain the price compared to true value, and its likely that the price is gonna burst. and go down to a lower level that can be explained compared to true value

usually bubble is screamed out at the end of a bull(up) and about to go bear(down)

Historically though, hasn't the demand for BTC steadily increased? As more people begin to understand the technology, I can only assume the demand will grow. Will the price of Bitcoin ever drastically fall off? I think that if Bitcoin can become accepted as a common world currency, we may see a major reduction in price but only as a correction to the death of fiat currency.

the PRICE.. is not 100% VALUE

imagine it like a bathtub of water..
as the waterline increases steadily(true value) it stirs up the soap(speculation) and you see a load of bubbles above the water line.

when the bubbles burst, you still have the water line.
the water line is the true underlying value, the bubbles ontop is just the vapour/air ontop that cannot carry weight and will burst if peopl poke at it
full member
Activity: 378
Merit: 100
Many people are still confused about Bitcoin, that's why they spread fud to avoid learning it.
Said from Investopedia refers to it as an asset driven by unwarranted, but exuberant, market behavior. It is basically a hike in price that has resulted in a lie or “false truth” about the actual value of an asset, and therefore presages a massive selloff.
Bitcoin are same as other economy asset investment. As the supply was limited to 21 million only, it will become scarce asset and when people want those things, it's value will rising.
member
Activity: 266
Merit: 13
real estate is a bubble investment
yes houses are real. they exist. they have utility and function.. but the price.. well thats the bubble

when a price increases not due to function. not due to cost of creation. but purely due to speculation... that is a bubble

saying something is in a bubble is not saying the item/asset is fake. its just saying its probably over priced because there is no good reason to explain the price compared to true value, and its likely that the price is gonna burst. and go down to a lower level that can be explained compared to true value

usually bubble is screamed out at the end of a bull(up) and about to go bear(down)

Exactly this.  Saying there's a bubble is an observation that valuations have gone beyond reasonable or rational expectation. Its not a slur against bitcoin its applied to any market, housing, commodities, shares, bonds from time to time.

If people dont think an 10 increase with in a year was bubble, they have a questionable sense of value.
sr. member
Activity: 658
Merit: 250
Since we all know that currently, the price of BTC is unstable. So there are certain articles call Bitcoin as bubble investment. May I know the reason why does it called a bubble? Why is that term is used in Bitcoin?

Just check BTC price for 2017 year  Smiley Of course it looks like a bubble at one point of view. So people have reasons to think so. On the other hand it could be beginning of new technology age (blockchain). It is easy: some people believe in blockchain and criptocurrency, some people see just a bubble  Smiley
newbie
Activity: 26
Merit: 0
Bitcoin has value, they argue, because it could become widely used as an alternative to existing currency.  Cool
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