Why economists say Bitcoin a bubble - page 11.

krishnapramod

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Free market economists don't have any issue with Bitcoin, buy yeah some other economists are sceptical about Bitcoin and you really can't blame them. We haven't seen something like Bitcoin before, but taking its exponential growth into consideration and applying well-established empirical and theoretical studies, some economists conclude that Bitcoin is a bubble. At the same time some of them don't ignore the possibility that large-scale Bitcoin adoption would weaken the centralized financial system.

Nobel Prize winning economist Milton Friedman who extolled the virtues of a free market economic system and believed in complete economic freedom predicted something exactly similar to Bitcoin about 18 years ago.

Quote

I think that the internet is going to be one of the major forces for reducing the role of government.

The one thing that’s missing, but that will soon be developed, is a reliable e-cash, a method whereby on the internet you can transfer funds from A to B, without A knowing B or B knowing A.

When Bitcoin is finally here, some economists do really have a hard time grasping it.

https://www.coindesk.com/economist-milton-friedman-predicted-bitcoin/

Sled

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Bitcoin- in bullish time

The economists say bitcoin is a bubble because they cannot believe that the price of bitcoin is growing so fast and it is unbelievable for them to gain a stock like bitcoin for a lot of percentage in just a year. In my opinion, we should not listen to them if they will say that bitcoin is a bubble because we all know that it is not true and we all know that bitcoin is a great investment.

Capt00

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Actually not all economist are believing in crypto. Maybe that economist is against bitcoin and he/she tell something about bitcoin that it won't really happen in real life. As bitcoin is already making a great history in the blockchain, I don't think that it would lost its value in the market.

Lagduf

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Quote from: Hydrogen on October 24, 2017, 06:21:30 PM

Food for thought.

Amazon's stock price has jumped from $18 per share to nearly $1,000 per share.

Warren Buffett's berkshire hathaway stock has gone from $290 to being worth $284,570.

Here we have examples of tremendous growth being sustainable in the financial world.

I think that the area where economists have trouble is, they don't make an effort to differentiate between bitcoin's growth and the growth of stocks like amazon and berkshire hathaway.

There aren't many economists who have real world experience trading or applying economics principles in a way that is reliable or consistent.

Well I don't surprised that the economists are actually judging bitcoin just to make it looks bad, I've seen so many stocks increasing its price rapidly just as well as you mentioned above.
The difference is that, maybe, the stocks have real company whereas bitcoin is just a digital cryptocurrency which price pure affected by the buyers and sellers

Fireblade

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Quote from: malikusama on October 24, 2017, 09:27:13 AM

Quote from: VTOS.IO on October 22, 2017, 11:37:20 AM

I talk to big economists they say Is only a Bubble my thought Is no bitcoin Is revolution of economy even doesnt have a background like gold the value Is power of the people what do you think?

What i have observed that economists are good with the fiat and paper money, they don't have any well awareness of bitcoin and cryptocurrencies. And one more thing mostly economists are linked with banks and government that's why they don't want to convey positive aspects of bitcoin and cryptos.

I do not think that they have any solid reason for that, they are just giving their own view about that, but it is not necessary, because bitcoin popularity and the increasing demand of bitcoin is a good proof which shows that bitcoin is not a bubble but it is trading in its original price. I think bitcoin still have more potential to increase its price.

bitllionaire

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Quote from: malikusama on October 24, 2017, 09:27:13 AM

Quote from: VTOS.IO on October 22, 2017, 11:37:20 AM

I talk to big economists they say Is only a Bubble my thought Is no bitcoin Is revolution of economy even doesnt have a background like gold the value Is power of the people what do you think?

What i have observed that economists are good with the fiat and paper money, they don't have any well awareness of bitcoin and cryptocurrencies. And one more thing mostly economists are linked with banks and government that's why they don't want to convey positive aspects of bitcoin and cryptos.

I think very little economist may have the same view. but i am sure that majority of them will consider the increase in the price of bitcoin as solid one. i am sure that the increase in the price of bitcoin is due to the high demand and interest of the people and we can see that their demand is still increasing from time to time. Therefore we can expect to see the price of bitcoin trading in more high price.

Hydrogen

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Food for thought.

Amazon's stock price has jumped from $18 per share to nearly $1,000 per share.

Warren Buffett's berkshire hathaway stock has gone from $290 to being worth $284,570.

Here we have examples of tremendous growth being sustainable in the financial world.

I think that the area where economists have trouble is, they don't make an effort to differentiate between bitcoin's growth and the growth of stocks like amazon and berkshire hathaway.

There aren't many economists who have real world experience trading or applying economics principles in a way that is reliable or consistent.

idahosk

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ARNA | TokenSale - December 15th

In my personal opinion, BTC is some kind of bubble, almost for sure. % gain in so short time is so huge, that some kind of major correction is very possible to see. BTC is smart idea and is something major for many people, but better potential as BTC I see in blockchain, as in BTC. Bitcoin will be more like store value, as payment option.

crypto_bit

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Quote from: FlorentineNobleman on October 24, 2017, 05:02:22 AM

Nobody wanted to buy BTC when it was trading at 200 USD over 2 years ago and it was the SAME technology as it is today Cheesy

Now surprisingly people say its undervalued at 6k USD.

Remember that price goes up bot because it's a great technology buy because there is a demand (fomo) and big holders aren't dumping. As soon as some 100k+ holders will decide to cash out you will see BTC dumping to 1-1.5k USD.

Moreover BTC mining is very inefficient and consumes more and more energy plus with the rising price the cost of transaction is skyrocketing making BTC completely useless as a medium of exchange.

Not exactly the same technology cause new BIPs come in. Bitcoin is kind of auto-developing payment system and I think it is a good alternative to centralized way of upgrading software.

--PrettyCryptoGurl--

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Quote from: VTOS.IO on October 22, 2017, 11:37:20 AM

I talk to big economists they say Is only a Bubble my thought Is no bitcoin Is revolution of economy even doesnt have a background like gold the value Is power of the people what do you think?

I probably would have believed you if you talked to just a 'small' economist. And why is that? Because, "...time and time again, the majority of economists make spectacularly wrong calls, and it is a small, despised minority that gets it right [emphasis mine]." This, from an article entitled Economists have a century of failure behind them.

'Nuff said.

sunsilk

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Quote from: VTOS.IO on October 22, 2017, 11:37:20 AM

I talk to big economists they say Is only a Bubble my thought Is no bitcoin Is revolution of economy even doesnt have a background like gold the value Is power of the people what do you think?

They will always say that bitcoin is a bubble, they don't know what they are talking when it comes to bitcoin.

They have no ears to hear those people that will say that bitcoin is one of the best investments that existed to their entire life.

I don't even know why they are called economists because they are not the usual economists that we need and they are all saying what's on their opinion.

Biggapp

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Quote from: Almat on October 23, 2017, 05:01:21 AM

Mostly because it's not backed by any asset. Its value is derived purely from supply and demand, so it could theoretically pop any second. People who actually hold bitcoins know this will not happen anytime soon though.

It is right not of the people who have invested the money in the bitcoin for those who are having the soft price and the low income of the bitcoin. In the future the bitcoin value was not very high but now the transaction of the bitcoin is high and the people who are investing in it are having the strong faith on the bitcoin, for sure a lot of the people are using bitcoin for the increasing price.

vfrias

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Economists are just stupid keynesian bastards. Trust me I'm an economist as formation.

You learn several technices to "control the inflation", "control the exchange rate", "control the full employment rate", and all such technices involves monetary policies of printing more or less money.

The question for this folks should be how are you planning to make society richer printing papers?

Bitcoin will not grow forever, that's obvious.
I also prefer to look instead of bitcoin appreciation as% of USD, think about USD depreciation. You government paper has no value and this paper, yes, is in a bubble and it's already crashing.

malikusama

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Quote from: VTOS.IO on October 22, 2017, 11:37:20 AM

I talk to big economists they say Is only a Bubble my thought Is no bitcoin Is revolution of economy even doesnt have a background like gold the value Is power of the people what do you think?

What i have observed that economists are good with the fiat and paper money, they don't have any well awareness of bitcoin and cryptocurrencies. And one more thing mostly economists are linked with banks and government that's why they don't want to convey positive aspects of bitcoin and cryptos.

Ctn

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Quote from: VTOS.IO on October 22, 2017, 11:37:20 AM

I talk to big economists they say Is only a Bubble my thought Is no bitcoin Is revolution of economy even doesnt have a background like gold the value Is power of the people what do you think?

That looks like a translated sentence from different coin. Well, what I understood I will answer that one. The economist will say many things about bitcoin obviously in negative way. But the original review must be taken by people like us who are actually using it in daily life. The value is power, agreed to that, and why don’t you see power in bitcoin after knowing that it has already surpassed the ounce gold back in early 2017. I mean isn’t that is enough value for bitcoin to have great power. The applications are increasing as well which means it is more than gold which is just metal and nothing much.

hase0278

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Quote from: VTOS.IO on October 22, 2017, 11:37:20 AM

I talk to big economists they say Is only a Bubble my thought Is no bitcoin Is revolution of economy even doesnt have a background like gold the value Is power of the people what do you think?

Big economists says that bitcoin is a bubble because they doubt it for it's fast increasing price. Probably if they got to know more about it, they might get interested with btc considering that it gives off faster profit than stocks. It's adoption also increases day by day which makes it go upward and downward depending on the latest happenings. I also think that some economist have already invested on btc but for some reason they are trying to get people away from bitcoin specially newbies.

Theb

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Quote from: Lieldoryn on October 24, 2017, 08:12:53 AM

Quote from: dulce dd121990 on October 24, 2017, 06:35:45 AM

if that was the opinion of the economists, then i think he is wrong. I don't believe bitcoin is like a bubble, because if so, why do rich people keep investing in btc? and why lot of people become rich because of btc?

It is not an indicator. Bitcoin is very similar to bubble. But any pyramid always brings good money to those who started to invest money in it. Bitcoin purports to be a currency. But we see that sellers are reluctant to use bitcoin. It can be solved only in case if the turnover of bitcoins in trade and manufacture. Until this will not be bitcoin is at risk.

Well that is how a bubble works people give Bitcoin their perceived value without any financial background backing their claim. There are no fundamental indicators but purely technical ones on determining only the flow of the prices but it cannot give us an exact fair market value for Bitcoin. Comparing it to stocks if vompanies you will no financial performance of it and also comparing it to fiat currency there where a country's economic performance is areflection for its price.

Lieldoryn

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Quote from: dulce dd121990 on October 24, 2017, 06:35:45 AM

if that was the opinion of the economists, then i think he is wrong. I don't believe bitcoin is like a bubble, because if so, why do rich people keep investing in btc? and why lot of people become rich because of btc?

It is not an indicator. Bitcoin is very similar to bubble. But any pyramid always brings good money to those who started to invest money in it. Bitcoin purports to be a currency. But we see that sellers are reluctant to use bitcoin. It can be solved only in case if the turnover of bitcoins in trade and manufacture. Until this will not be bitcoin is at risk.

McKane

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IF PROBLEM WITH MY TRUST THEN BRING AN ESCROW.

Quote from: dulce dd121990 on October 24, 2017, 06:35:45 AM

if that was the opinion of the economists, then i think he is wrong. I don't believe bitcoin is like a bubble, because if so, why do rich people keep investing in btc? and why lot of people become rich because of btc?

Bitcoin having potential influence to make everybody rich since take a gander at the market take a gander at the financial specialists proportion individuals will put even from initial arrange in bitcoin so what do you need more from bitcoin. Bitcoin is expanding on every day base which is very valid.

sofi@

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Economist don't give so much time learning about bitcoin this merely the reason why they are not that believing in bitcoin. Up to this moment they think that bitcoin will not sustain in the market and what we are having now can suddenly lost in an instant. Economist believe that tge value of bitcoin is only temporary but since they do not understand sooner in the future they will be amazed how bitcoin change the economy

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