Topic: Why economists say Bitcoin a bubble - page 12. (Read 3925 times)
Economist are people with wide understanding of economic money price cycle. I guess they base their bitcoin opinion on Bitcoin price chart. Yup based from the BTC chart Bitcoin is over bought. I believe someday it will explode to tank for a much higher price.
They must have their own reasons to think or say like that about Bitcoin. Their business is not based on Bitcoin, nor they have any investments in Bitcoin, so they get nothing nor they lost anything by saying something good or bad about Bitcoin to anyone, so the better is not to listen what they say. But to be honest, maybe what they say is not totally senseless, since Bitcoin is just a digital currency, though it has been around for a lot of time now and it has gained a very large number of users by now, and price it has is also to be mentioned, but beyond all that, we should always keep in mind that Bitcoin is not really backed by anything or anyone. If, lets assume, Bitcoin drops its value like hell and become worthless in a year or so, i know it doesn't sound realistic but if it can grow so rapidly it can drop like that as well, so if something like that happens, who will the people blame? Where will they go? What will they do? Since it all revolves around internet without any person or authority associated with it, we can only sit and cry over our losses if something like that happens.
There were (or are?) some valid points from the general economist's point of view. You have to remember that economists study theory and are taught how global finance and economy works. If you're a realist, you find some holes in those theories and structures, but as well you see the merit of some.
To give you an example of what economists thought of Bitcoin in 2014, maybe you can see this short slide: https://www.slideshare.net/i_heresss/techtalk-bitcoin-burn
I particular: Gresham's law and regulation.
Today, more than three years later, some of their arguments are stronger, but some are not, particularly when it comes to regulation.
Disclaimer: I read stuff like this with some amusement, but it's always good to comprehend the critics.
To give you an example of what economists thought of Bitcoin in 2014, maybe you can see this short slide: https://www.slideshare.net/i_heresss/techtalk-bitcoin-burn
I particular: Gresham's law and regulation.
Today, more than three years later, some of their arguments are stronger, but some are not, particularly when it comes to regulation.
Disclaimer: I read stuff like this with some amusement, but it's always good to comprehend the critics.
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?
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 are simply saying it is bubble because they cant seem to comprehend why what is not felt , carried about physically , controlled (and other properties of bitcoin/cryptocurrencies that make it distinct from paper money) could be used as money or means of exchange.
Economists always believe on the physicality of things to be deduced into scientific hypothesis and theories. Thus , when this is not the case , they now consider it as a bubble - meaning itb wont stand the taste of time. I read also that economist in the london hemisphere are the ones usually considering bitcoin and cryptocurrencies as thus.
Well , we are yet to see if it going to disappear as they claimed. Bitcoin has been around for 9 years and changing lives though.
They have the basis to prove it. However, it is important, how this bubble works, if it can grow properly, it will never break. 
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 
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.
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.
I think it is becoming popular because of how it is mined. Because earlier, it is time consuming and electricity burden. But more and more technology are being developed toreduce such certain problems. Now it us becoming more easy, people tend to regret it not either mining or buying btc in the early days. As many miners are being attracted the higher its value is increasing.
Economists is the important of the country. It will growth country also growth and people also get the more benefit. People will be grow economists is improve the future. and bitcoin also increase the prices. all country also accept the bitcoin. It will growth future and prices is increase day by day. Economists is part of the country. You will easy to gather the country information. Economists is the country improvement.
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 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.
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.
Everyone doubted electric cars a few years back and now everyone is curious about them. The demand of people change over the years. People now realized that blockchaintechnology is the way to go in the future.
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 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.
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.
I think it is becoming popular because of how it is mined. Because earlier, it is time consuming and electricity burden. But more and more technology are being developed toreduce such certain problems. Now it us becoming more easy, people tend to regret it not either mining or buying btc in the early days. As many miners are being attracted the higher its value is increasing.
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 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.
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.
Of course, anytime the price goes up they shout " It is a bubble that will burst" and whenever there is a dip; "the bubble is bursting". I don't think there is an available economic model yet well suited to analyse if really it is a bubble or not. Even if it is, it still have a lot of years to go before it can burst.
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?
Indeed, bitcoin has no basis in its own right to guarantee its value. However, the popularity of the market is becoming a major platform for it to go up quickly. In other words, it is the trend of the world, a trend of the times.
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.
I think there is no way that we can doubt the worth and importance of bitcoin. Bitcoin is in fact the top leading coin in the world of crypto currency and the way it is making its name, there are likely chances that soon it is going to become the most widely used coin of the world. The decrease in market price of bitcoin is quite a normal thing and there is nothing to be worried about, in fact cash those moments.
When they have nothing better to say about bitcoin, they just say "it's a bubble". Economists might well speak of the great properties of the currency bitcoin and how it is changing asset liquidity or how it is changing the payments market, but of course it is not important, as they did not buy bitcoin years ago when it was worth only a few hundred dollars, so let's just say it's a bubble and soon it's going to burst and bitcoin's going to be worth $ 100 proving once again that it's not a reliable source of trade. Thankfully we do not need any economists saying nonsense when it comes to bitcoin, because they speak badly of what they do not know and this is normal. You will never see anyone speak well of the bitcoin coming from Wall Street (unless he has already bought several coins and tries to manipulate talking nonsense on twitter).
The French say that any cognac was once brandy but not all brandy can be cognac. Bitcoin too. Now he has all the signs of a bubble, but if you will be able to buy goods and get paid in bitcoins then he can become a full-fledged currency. It all depends on what actions will be taken by the bitcoin community.
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 think they say bitcoin a bubble because we are not sure in bitcoin, it can be dis appear any time like a bubbles, but for me i don't care, im still wanna know all about bitcoin.
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 economists you had mention maybe are not really experts in the field. They tried to give us false information and threaten us about bitcoin bubbles. However in reality they have just crab mentality. They don't want us to invest in bitcoin just like them.
Maybe the same guys that advised investment on MADDOF garbage. Or made clients put money in greek Debt before default? MAybe we are all wrong here, MAYBE, but the famous economists have proved themselfs very wrong already in detecting bubbles. The Technology , blockchain is only and nothing more than the future. If BTC will burst one day and be considered a bubble? probably, but not righ now. BTC is only adopted by a few and will grow more before / if butsting.
The thing about economic models is that they are exactly that - models. They take assumptions to simplify things in order to relate it to the real world. More assumptions means a more general model, which in turns mean that it will be less specific, but will also fit for more scenarios. The models economists use to identify bubbles and/or crisis are all fitting well with the evolution of Bitcoin. Charles Kindleberger has used theories by Hyman Minsky to create a model which tries to explain the steps of a crisis. However, these are created for use on a single economy.
Minsky focuses on the financial system itself, and flaws in it. Kindleberger's focus lies on an external shock that causes spending to increase. The problem with using these models on the alleged bitcoin bubble is that the crypto markets are not a traditional economy. There are no regulations yet, and it spans all over the world. With no limitations it's hard to define the extent of the economy. So the traditional models aren't really suited for this.
All that being said, I'm not claiming that it isn't a bubble. The methods economists use are simply not very suited for this kinda thing, as it's too new.
Minsky focuses on the financial system itself, and flaws in it. Kindleberger's focus lies on an external shock that causes spending to increase. The problem with using these models on the alleged bitcoin bubble is that the crypto markets are not a traditional economy. There are no regulations yet, and it spans all over the world. With no limitations it's hard to define the extent of the economy. So the traditional models aren't really suited for this.
All that being said, I'm not claiming that it isn't a bubble. The methods economists use are simply not very suited for this kinda thing, as it's too new.
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 say Bitcoin is a bubble because it is
Personally, I have no doubts about that and support their claims. Bitcoin is a vehicle for speculation and profiteering so far, it is not used in the real economy as a means of payment. Even when it looks like it is, it is only imaginary because all bitcoins you pay for goods or services get instantly converted to fiat by payment processors like BitPay. Is there a hope? I hope yes, there is. And it could come through massive fiat currency devaluations (like the one which happens right now in Venezuela) where people will have no other choice but use cryptocurrencies instead of the local currency which is being heavily devalued until it simply ceases to be money (like it happened in Zimbabwe)
Jump to: