Why the Bitcoin Bubble Burst is Good for Crypto

BrewMaster

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Quote from: Upgrade00 on February 21, 2019, 11:09:48 AM

Quote from: cybersofts on January 06, 2019, 03:24:57 AM

Organizations that were planning to launch their bitcoin-based services have delayed their projects or scrapped them entirely.

Any organization which falls into this category was only attracted by the hype that the high price created, and were interested in sharing in on some of those profits.
We need industries interested in developing this industry, the Bitcoin network.

you have a good point here.
people sometimes confuse the newbies who started "something" on the internet as "companies". for example during 2017 we had a lot of newbies starting "fund manager companies" where they fooled themselves and a lot of other newbies into altcoin bag holding. obviously they all failed as the altcoin bubbles bursted.

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Quote from: cybersofts on January 06, 2019, 03:24:57 AM

Organizations that were planning to launch their bitcoin-based services have delayed their projects or scrapped them entirely.

Any organization which falls into this category was only attracted by the hype that the high price created, and were interested in sharing in on some of those profits.
We need industries interested in developing this industry, the Bitcoin network.

deisik

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Quote from: justdimin on February 21, 2019, 03:54:03 AM

Yes, the bubble is a good thing because it is shuffling the market, removing the good from the bad and throwing the bad into the waste bin

I heavily disagree with this view

As I can't see how the bubble can be a good thing. Through bubbles rich people become even richer while poor people become poorer simply because the former have enough financial resilience and stamina to wait out the bad times (apart from causing these times in the first place) while the latter will have to sell at the lows as they have no such leverage. And this is true not only with respect to just cryptobubbles but any asset bubbles

justdimin

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People who want to earn quick and get out with quick profits are the root of what bitcoins problems are. Bitcoin shouldn't have been a thing that people get in to make profits to begin with.

Bitcoin is money in itself and can't be considered as some investment that will make you rich, you can still use it to trade in between other coins and even fiat if you have needs and calculate the amount of fiat you have according to btc you have and purchase games and vacations and whatever but in the end bitcoin supposed to be an idea, a project that could potentially change the world.

People who use it like gold or stocks are the cause of this problem and hopefully next time around with this bubble bursting only the people who live the idea behind bitcoin stays and we can increase it together without those "get rich quick" type of people.

justdimin

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Yes, the bubble is a good thing because it is shuffling the market, removing the good from the bad and throwing the bad into the waste bin.

We have seen this from the ICO trend where many ICO companies are nowhere to be found because their coin is now shit coin and don't add any value whatsoever to this our great community. The project that would be left standing are the good ones.

BitHodler

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Quote from: Jating on February 11, 2019, 05:07:44 AM

Mostly new investors loves to FOMO, so there's no way for them purchase at this long bearish market because they wanted to earn a quick and easy money and won't wait or HODL or it for a long time.

What else is there to do for people only knowing to buy low and sell high? There isn't much to do other than to wait for better times. Buying altcoins doesn't help either because they randomly pump. Try to guess which one pumps next....

Some however are starting to figure out how BitMEX works and try their luck there betting on up or down swings with insane leverage counts. It's sad to see how people force themselves to "make profit", but it's their fault entirely.

Some times it's better to stay away from the market and focus on other things....

2chase

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The bitcoin bubble is an absolutely normal phenomenon - this market is quite young and it is actively developing, therefore the development of a market of this magnitude will always be associated with very high volatility, and this will be expressed in the fact that the bubble will periodically strongly inflate and then greatly deflate.

deisik

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Quote from: cybersofts on January 06, 2019, 03:24:57 AM

Even the most ardent crypto evangelist must admit that bitcoin appears to have been the worst investment of 2018, at least in pure dollar terms. The cryptocurrency has lost almost 80 percent of its market capitalization since it established an all-time high at around $327.15 billion. The adoption rate and volume have dropped likewise. Organizations that were planning to launch their bitcoin-based services have delayed their projects or scrapped them entirely. As any seasoned trader would say, the bitcoin bubble is bursting — or has burst already

That depends on which side of the trade you were on

For example, if you were shorting all the way down from 20k to 3k, 2018 was likely one of the most profitable years ever since Bitcoin's "known" history (i.e. since 2013) and quite comparable to what you might have earned if you were long since 2015 and till December 2017. Regarding halted or paused adoption, I don't believe in that as there was nothing to halt or pause. Most of these so-called "bitcoin-based services" were vaporware anyway (aimed at earning quick buck through hype), so nothing to be sad about

Naida_BR

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By making the bubble blow and drop the price in order that investors are able to buy more isn't a good strategy that helps crypto. The are many more people that have bought their cryptocurrency with their life savings expecting to make a decent profit. If bubbles blow then these people will spread FUD that will eventually harm more the market and for a not actual reason.

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Quote from: Jating on February 11, 2019, 05:07:44 AM

New investors are getting smarter I believed, and won't simply willing to take the risk on getting in today even if the price is still at a discount.

Mostly new investors loves to FOMO, so there's no way for them purchase at this long bearish market

The smart thing to do would be to buy at a cheap price when everyone else is undecided, rather than joining rhe bandwagon and buying with the FOMO, at which point you would be selling to the smart investors who purchased at lower prices, leaving you with an overpriced asset.

1Referee

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Quote from: Jating on February 11, 2019, 05:07:44 AM

I don't think that there are new investors buying in just because the price is very cheap. New investors are getting smarter I believed, and won't simply willing to take the risk on getting in today even if the price is still at a discount.

I think that new investors initially believed that buying dips was a good thing, but they have rekt themselves hard last year by doing so.

In the end, I don't believe that current prices are really that cheap, short term speaking. Looking at the price, and how we've been hovering between $3200 and $4000 for quite some time now, more people seem to consider this range to not offer an interesting enough discount. In fact, from what I have seen around me, and here on this forum, it really seems that people expect sub $3000 levels and save up their fiat for that.

Jating

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Quote from: arpon11 on February 11, 2019, 04:35:26 AM

The bubble burst of bitcoin is good becouse it being bitcoin price to the level were every one can invest. New investors that desire to buy bitcoin when it was very cheap are now happy because with $3600 one can now Buy a whole bitcoin that went as high $20,000 in December 2017. Of a truth the continue bearish market has affected every thing and many investors has lose hope of recovery but we strongly believe and encourage those that are buying now to continue as bitcoin is going to recover in no time.

I don't think that there are new investors buying in just because the price is very cheap. New investors are getting smarter I believed, and won't simply willing to take the risk on getting in today even if the price is still at a discount.

Mostly new investors loves to FOMO, so there's no way for them purchase at this long bearish market because they wanted to earn a quick and easy money and won't wait or HODL or it for a long time.

arpon11

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The bubble burst of bitcoin is good becouse it being bitcoin price to the level were every one can invest. New investors that desire to buy bitcoin when it was very cheap are now happy because with $3600 one can now Buy a whole bitcoin that went as high $20,000 in December 2017. Of a truth the continue bearish market has affected every thing and many investors has lose hope of recovery but we strongly believe and encourage those that are buying now to continue as bitcoin is going to recover in no time.

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Quote from: cybersofts on January 06, 2019, 03:24:57 AM

Even the most ardent crypto evangelist must admit that bitcoin appears to have been the worst investment of 2018, at least in pure dollar terms.

I'm not an evangelist by any means, never mind being the most ardent, nor most knowledgeable but Bitcoin's anything but the worst investment anyone could have made in 2018. I can think of at least 2 fiat currencies that lost way more than 80% of their value last year.

Even if we're talking of 1 asset class (crypto), almost any other crypto was outperformed by Bitcoin (or rather, performed worse).

Quote from: cybersofts on January 06, 2019, 03:24:57 AM

In pure dollar terms, the bitcoin price is on the downside of its largest-ever price bubble.

I think the largest bubble hasn't been surpassed... refer to post Mt Gox.

Quote from: cybersofts on January 06, 2019, 03:24:57 AM

The year 2018 was the time of delivery, but no ICO turned up for the show. According to a research paper published by the Carroll School of Management at Boston College, almost half of the blockchain projects were found to be failing within four months of their introduction.

Sounds like an underestimation. Probably more accurate, half didn't even try to succeed. Half that did didn't have a chance. I can't think of any project in 2018 that should have delivered a product that could safely call itself a success. It was those in 2016 and 17 that really made something that at least had a community of users.

timerland

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The bursting of a bubble does not necessarily mean the death of the underlying asset. The financial industry is full of such examples where traditional metrics defined the overvaluation of markets followed by a long-term bearish correction.

That should be your main take away from the article.

Bull and bear markets are inevitable, in all markets. Bitcoin is no different, except the fact that its idea is quite foreign to a lot of people mean that media will often make things out worse than they actually are, and investors will panic much more significantly when prices are dropping in a bear market. The fact that bitcoin is decentralized and has no price control mechanism also means that market swings can be significantly larger.

But does the bear market actually do any damage to bitcoin itself, as a currency, and its ability to transact value globally, over the internet? Absolutely not. In fact, it could even wipe out some unrealistic expectations of bitcoin that has been developing through the bull market that are completely unsustainable. Bitcoin has not intrinsically changed, all that has is the price, and given that institutions and investors in general are still showing big time interest in bitcoin I don't see any reason to be concerned whatsoever.

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Quote from: wuvdoll on February 06, 2019, 08:53:36 AM

Why wouldn't we slowly increase from 800 dollars 2 years ago to 3500 today in a slow and steady manner instead of having all these ups and downs constantly? Wouldn't that be better than the bubble and crash ?

Better? Maybe, but it would be incredibly unnatural. Bitcoin is so volatile because it's incredibly speculative. Many people think it will revolutionize money and during the bull markets that attitude dominates, so speculators try to front run adoption through investment. On the other hand, many people think it will crash and burn like tulip mania, and during the bear markets this attitude (that Bitcoin is a bubble) dominates.

Sentiment fluctuates between these two poles the same way the market fluctuates from bull to bear and back to bull. It's impossible to prevent this boom-bust style action because we're all intensely speculating about what the future will look like. Bitcoin could be mass adopted (millions USD) or it could be abandoned (zero). In between is a whole lot of volatility. I would never expect it to be slow and steady.

wuvdoll

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It is also not talking about how the bubble existing in the first place is not really good but aftermath could be good.

I understand that a bubble crashing could potentially have benefits but also at the same time I think being a bubble is the cause of all this problems.

People look at the ICO's and 20 thousands and so forth and they say "well it wasn't sustainable so look at it this way at least we will have an amazon of crypto", I understand bitcoin will be amazon of crypto but why would we have a dotcom bubble to begin with, why have something that is not sustainable to begin with ?

Why wouldn't we slowly increase from 800 dollars 2 years ago to 3500 today in a slow and steady manner instead of having all these ups and downs constantly? Wouldn't that be better than the bubble and crash ?

Herbert2020

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it seems like some people are always way too late to the party and never fail to be late! at this point talking about bitcoin bubble and its burst is like talking about ancient history that has been long over and concluded. we are 85% below the bubble ATH for goodness sake. and yeah it was a good thing for bitcoin when it happened and those of us who knew better were saying it ever since.
now is the time for talking about how accumulation is good for you when price is still low and near the bottom although it may not be the lowest price.

davis196

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Quote from: ashmodeus on February 04, 2019, 12:37:21 PM

Quote from: davinchi on January 06, 2019, 10:38:37 AM

Thinking about spending a trillion dollar cap back in the day into a thousand crypto currencies makes me cring, if we managed to squeeze that into just top 20 coins instead of diluting the crypto space we could have had a much much bigger bitcoin/ethereum and all the other top 20 coins instead of sharing it with other smaller coins. With the new bull people will be careful about smaller coins and will instead try to invest into bigger ones which will make the next bull much better.

well
so that mean , era of ICO is over ?
if people do like what u say ,
of course , we can see hundreds of coins will die.

Yeah,the good news is that the shitty ICO era plus the "small pump&dump altcoin" era are over.Nobody is buying into this shit anymore.Which means that more money will be concentrated into the big cryptos,during the next big bull run,which means the next crypto bubble will be epic.

ashmodeus

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Quote from: davinchi on January 06, 2019, 10:38:37 AM

Thinking about spending a trillion dollar cap back in the day into a thousand crypto currencies makes me cring, if we managed to squeeze that into just top 20 coins instead of diluting the crypto space we could have had a much much bigger bitcoin/ethereum and all the other top 20 coins instead of sharing it with other smaller coins. With the new bull people will be careful about smaller coins and will instead try to invest into bigger ones which will make the next bull much better.

well
so that mean , era of ICO is over ?
if people do like what u say ,
of course , we can see hundreds of coins will die.

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