Topic: Why I think Bitcoin is mostly not in a bubble: (Read 491 times)
spammy
Although you hear of guys taking loans to get Bitcoin which will probably cause them to cash out before it stabilizes, there's one big difference between usual bubbles and Bitcoin.
Bitcoin is a convenient store of value, and most people with Bitcoin know this. It's also very liquid, so only when someone really wants something they will take some out. This could replace many peoples banks, which means most of the coins will not be sold.
Usual bubbles go way overpriced like tulips or stocks. When tulips popped, everyone realized they aren't really that valuable and there's plenty of supply. When stocks pop, people get out because they can't use their money in the stock and its illiquid.
Also I don't think most bubbles get widespread media coverage during the adoption phase when it's just starting to get used.
Thoughts?
Bitcoin is a convenient store of value, and most people with Bitcoin know this. It's also very liquid, so only when someone really wants something they will take some out. This could replace many peoples banks, which means most of the coins will not be sold.
Usual bubbles go way overpriced like tulips or stocks. When tulips popped, everyone realized they aren't really that valuable and there's plenty of supply. When stocks pop, people get out because they can't use their money in the stock and its illiquid.
Also I don't think most bubbles get widespread media coverage during the adoption phase when it's just starting to get used.
Thoughts?
Who cares? It's anonymous and it's safe.
The fact that there's such a loud cry of "bubble" is evidence against a bubble, if anything. The word is perhaps overused. The 2011 bitcoin spike was indeed a bubble; the recent peak perhaps a bit, but less so. If the $266 peak was a real bubble, expect a long period of sideways or downward consolidation/movement from here.
Would you have called American house prices in 2007 a bubble?
Although you hear of guys taking loans to get Bitcoin which will probably cause them to cash out before it stabilizes, there's one big difference between usual bubbles and Bitcoin.
Bitcoin is a convenient store of value, and most people with Bitcoin know this. It's also very liquid, so only when someone really wants something they will take some out. This could replace many peoples banks, which means most of the coins will not be sold.
Usual bubbles go way overpriced like tulips or stocks. When tulips popped, everyone realized they aren't really that valuable and there's plenty of supply. When stocks pop, people get out because they can't use their money in the stock and its illiquid.
Also I don't think most bubbles get widespread media coverage during the adoption phase when it's just starting to get used.
Thoughts?
Bitcoin is a convenient store of value, and most people with Bitcoin know this. It's also very liquid, so only when someone really wants something they will take some out. This could replace many peoples banks, which means most of the coins will not be sold.
Usual bubbles go way overpriced like tulips or stocks. When tulips popped, everyone realized they aren't really that valuable and there's plenty of supply. When stocks pop, people get out because they can't use their money in the stock and its illiquid.
Also I don't think most bubbles get widespread media coverage during the adoption phase when it's just starting to get used.
Thoughts?
Jump to: