Topic: Why economists say Bitcoin a bubble - page 7. (Read 3925 times)

Bitcoin have huge market whose can not be in bubble. Maybe in 100 years but not now. I am sure about this

Money doesn't have to be a commodity, and most of fiat money today definitely isn't. Bitcoin is also legally recognized as "private money" in some countries already.

Firstly, bitcoin is not money, because money must be a commodity.  Secondly, the current market of cryptocurrency is fully suited to the description of the bubble.  Optimism, with respect to bitcoin and cryptocurrency in general, is off scale.  People are becoming more and more convinced of their belief that bitcoin is a reliable and super-profitable investment tool.  The higher the price, the more people will want to buy tokens and earn a lot of money.  Accordingly, the growth in prices is affected only by the assumption of reliability and prospects. In other words, the ascending trend of bitcoin may be a herald of the future collapse.

Bitcoin isn't at the top just because of its algorithm. It's also in a unique spot that makes it a requirement for those who wish to invest in altcoins.

yes they are a realist too , they don't want something that looks like too good to be true , with the current price that nobody else really know what causing all of it , i mean the real factor that could make them feel not insecure.

as of now the volatile happened so massive showing a bearish but it keep growing and for them it is doesn't makes sense.

Some of these economists you see these days are just fools, and you should never listen to those foolish ones, I don’t even know how they got through to become economists. Yes, it looks like a bubble, but some of them uses the bubble word as a way to incite people to believe that Bitcoin is scam and rubbish.

Some of the points raised by the economists are fair and straightforward. One big objection about the overpriced, many economists are thinking that if bitcoin is put in actual use then its real price will be determined. And that price will be very less than what it is now.
At the same time we have seen people time Dimon who used their position to manipulate the prices and when prices were low they swoop in. However with this kind of approach, you succeed only once. Next time Dimon will not be taken seriously. Other people who are negating bitcoins is purely based on prejudice and lack of information. And some being simply bank-media shill.

I thinks's economist say bitcoin a bubble because of the worldwide ledger  process in cryptocurrency world,but the reality its continue to grow  and decentralized in the blockchain market.economist have there own analization in the economy happen, but in terms of cryptocurrency its different.

I seem to understand what you mean

Basically, we mean essentially the same thing. I talk about transactional utility which is a basis or source for what you call transactional demand, or rather expectations based on future transactional demand. If I got your point correctly, you mean that people (some people) buy Bitcoin because they hope it will be a future medium of exchange when it gets universally accepted worldwide as opposed to folks buying it exclusively for the purposes of speculation. That said, I don't think this demand is great, I'd rather say it is small, if not to say tiny

The real question here is why didn't you ask them when they told you that. Maybe contact them and ask them. We might have things to say in here but they probably have a deeper explanation since they are economists. I think that the reason they told you that is because bitcoin is a speculative asset. At some point, the price is doomed to go down significantly. This is totally normal to all markets that are based on supply and demand law (which is basically all markets) so their argument cannot be easily proven wrong.

You will see that once bitcoin experienced a major dip, they will come knocking to your door saying, "I told you so." even when bitcoin is only down momentarily.

we dont know whats on their minds. maybe they're just testing how it will resist like what Dimon did. maybe they're just discouraging people so they can buy some time to hold more. possibilities are endless.

There is a lot of better digital or alternative currency than bitcoin, still bitcoin is popular and pricey and still sitting  a top of all of it. It just means that bitcoin will never leave the top and will never go down, bitcoin is not a bubble because if it is, it must popped up a long time ago.

Some crypto currencies are very overrated today. Their real value we learn with time. Perhaps this bubble is also undervalued

Nobody can say for sure, for now you should have a war chest and invest using common sense. At least for this transition period

I agree that bitcoin does not have any important intrinsic value. By this I mean that it is not a security entitling the holder to anything and that its objective, market-independent properties are almost useless (cryptographic timestamping on [Suspicious link removed]es to my mind as one). Bitcoin's value comes almost solely from transactional demand for bitcoin and expectations of future transactional demand. It is not the same as demand as a payment service for coffee or t-shirts, but rather demand for a liquid asset, which is easily transferable globally and which is able to settle even large transactions swiftly, reliably and pseudonymously.

While it is true that speculation is the main driver of bitcoin volume, but those who believe bitcoin prices will rise can do so based only of future transactional demand (or are irrational but lucky). Every time one does the calculations like "imagine bitcoin will be the size of VISA" or "if 1% of global capital markets' funds were directed to crypto..." one is estimating the future liquidity of the asset. Anytime short term trader looks on the charts in the search of the technical patterns he tries to estimate money flows. And in fact speculation very positively influences bitcoin liquidity and the premium people will pay for such liquidity. So it is a positive feedback loop.

Sure, bitcoin is not money, since it is not a unit of account anywhere, but it is a (small, nascent) medium of exchange. And since economists are accustomed to seeing large liquidity premia on monetary assets and not on (virtual) commodities, they shout "bubble"!

Could you expand more on this?

What do you mean by liquidity premium (transactional demand)? If you mean transactional utility, then it is pretty slim in Bitcoin since Bitcoin is not used as money. It is a vehicle for speculation (the proverbial "buy low, sell high") but once you inject your bitcoins (or other cryptos, for that matter) into your exchange account, they mostly stay there, i.e. you don't transact with Bitcoin as much as you use it for speculation. So it is really minute in comparison with demand for Bitcoin as a speculative asset. Also, I'm not quite sure what you mean by Bitcoin's intrinsic value. As far as I can say, there's none

The economists claim that Bitcoin is a bubble basically for one reason: the liquidity premium of (or, in other words, transactional demand for) bitcoin is huge relative to its intrinsic value (IOW, the value you get when the music stops).
Since bitcoin is actually the first asset to fully conform to quantity theory of money, most economists are perplexed.

Mostly the so called economists are backed by financial companies or just lobbied by them.They just blindly term bitcoin as a bubble or as a fraud just like jamie dimon.Some even term it as a tulipomania.

Either they just want to show it down or just create uncertainty among bitcoin investors.

A bubble is a thing where people invest blindly in a stock or asset much more than it deserves.Here,we actually don't know what value bitcoin deserves.Its the trust kept by people over it on seeing its performance that has made its price to rise.

Its demand is steadily increasing and we could not find any reason for people to suddenly lose their interest in it and sell at once.

If a better coin comes along, Bitcoin can vanish very quickly. But it doesn't seem like this will happen anytime soon.

I think those are not economists who said this foolish verse, because I think these economists do not see the people who are investing in bitcoin in such a large capacity and the market cap of bitcoin is increasing day by day. Bitcoin is the future currency of the world how can it be vanished in the air? It is not possible for anybody in the world to erase bitcoin from the page of the future.