Bitcoin Forum

Since we all know that currently, the price of BTC is unstable. So there are certain articles call Bitcoin as bubble investment. May I know the reason why does it called a bubble? Why is that term is used in Bitcoin?

I think it’s  bitcoin does not have an intrinsic value.

For me, it's all because of its tangibility as a currency. Unlike fiat money, bitcoin is like an asset that doesn't have physical form and people are used to believe in a certain thing based on their senses that's why they treat it as a bubble investment especially those non-tech savvy who grew up in 80s downward.

Most of the people who have called the Bitcoin as Bubble are Bankers and CEO who depends on FIAT, so this news are just to destabilize the current TRUST investors has on BTC. BTW, Bubbles means a fortunate situation that's unlikely to last. (from Google) - meaning there's no assurance with your investment.

A bubble is when the price of an asset doesn't depend on its "main factors"  investors value the asset to determine its value.
It can be money that is transformed from stocks in the future, the company's cash flow, the state of the country's economy or even the rent for the property.
But bitcoin doesn't calculate profits (from shares) or rent (from real estate) and is not tied to the national economy. This is one of the reasons why it is difficult to say about its value.

People call it bubble because of its rapid growth when compared to the other type of investment and it maybe overvalued by the huge demandonce the people realize that bitcoin is not worth to invest then it burst which is called bursting.But in crypto currency the price is too volatile but the people telling about bubble burst since 2011 because they can't accept the huge growth of it.But still the burst didn't burst I hope it will not forever.

there are a lot of different reasons for that depending on who is saying it and when.

bitcoin goes into bubbles, that is a very well known thing and we have already seen it multiple times. probably at least 30 small ones and at least 4-5 big ones last of which was the 2013 which everyone knows!

so calling bitcoin a bubble or saying it is in a bubble when it was near $20k was a correct call. but not everyone was saying that. most of the things you see (like 99% of them) have been calling bitcoin a bubble generally even when it reached $1200 last year they were saying it should burst and fall to $500-$600 and kept saying the same as bitcoin rose up. they are just full of shit when they say it obviously and most of them want price to fall for many reasons mostly investment reasons.

It's being the intangibility of bitcoin that causes people to think bitcoin is a bubble, that they are thinking it could burst anytime. Unlike fiat money that you can see or hold it with your hands and the fact that it is backed by the government. But as for people who are already in the cryptoverse for the longest time, we all know that crypto has a potential and could substitute fiat in the future.

While all that may be true for you, it's pretty obvious that even on this forum most people are into Bitcoin because they see it as a "get rich quick" solution.  That's classic for a bubble. 

That doesn't mean there isn't an underlying value, just that at the moment it's swamped by the bubble.

The reason why it's called bubble investment is because bitcoin has no physical form or existence and only consist of data which can be easily crashed or burst anytime.  It's like your investing into something you cannot touch nor see.

They are just presenting themselves as forecaster for the day. They will run away once Bitcoin comes soaring again. Just like what people did when they predicted that Donald Trump will never become a president. They all deny their stupid prediction after Trump bashed their hopes in a single move.

1. Because they don't understand about bitcoin and other cryptocurrency.
2. Banks and government against bitcoin, they want to destroy bitcoins and other crypto because this thing will kick banks from the world, so they are make a "bubble" issue.
3. What is bubble ? Nonsense, forget it.

They think that the increasing price of bitcoin is only a redult of excessive enthusiasm by people. They don't really understand how big is the potential of bitcoin. It can solve problem of unbanked people, it can be a new easy way of transferring money. So bitcoin is not a bubble but this is the new era of payment methode.

Bitcoin is said to be that way because it's easier to use, and more profitable

real estate is a bubble investment
yes houses are real. they exist. they have utility and function.. but the price.. well thats the bubble

when a price increases not due to function. not due to cost of creation. but purely due to speculation... that is a bubble

saying something is in a bubble is not saying the item/asset is fake. its just saying its probably over priced because there is no good reason to explain the price compared to true value, and its likely that the price is gonna burst. and go down to a lower level that can be explained compared to true value

usually bubble is screamed out at the end of a bull(up) and about to go bear(down)

When market prices rise can be very high and if the price is very high can change the market price down instantly, ( bubbles can explode unexpectedly ).
Maybe like that, Why certain people call Bitcoin as a bubble investment.

I myself use and invest in BTC, but I will consider it a bubble until people start paying them in full. At this time, crazy volatility is hampering this. But it allows many people to earn money.

Because they are lack of knowledge about bitcoin industry. To see is to believed for others. And for the reason that it is because inside  only in your virtual wallet, you cannot hold a bitcoin personaly in your hands. From their they think that it is not true.

The December sharp rise in the price of bitcoin, when it grew practically only due to a net increase in demand for it due to speculative tendencies, showed its nature as a financial bubble. It was the exorbitant demand for it that made bitcoin grow in price, bloating like a bubble. Therefore, after such a simple one, he went to such a deep correction.

Well said. I see many people saying that bitcoin is in a bubble and might burst anytime which is partially true due to the extreme volatility of the crypto world, but I do not agree with the point that bitcoin and the crypto world will simply die once the bubble bursts. This market has already experienced many different bubble bursts from quite sometime(Recent burst was a big one) and always recovered no matter what which is why I do not feel this will scare away potential investors from investing into this market. Bitcoin will survive no matter what if you ask me.

Because bitcoin is virtual, bitcoin is thought to have no substance and no intrinsic value.
The price of bitcoin is so high that people think it is not worth the price.
They believe that bitcoin will collapse at any time and disappear directly.

"Because Bitcoin could also rise in price, and at one point plummet in value. That is, burst like a bubble." - that's what some people think.

Bitcoin is a digital currency, also known as a cryptocurrency, that emerged after the financial crisis and is not underpinned by a central bank.  Certain people may call it bubble burst when significant amounts of people trying to cash out on their investment and there are no buyers looking to pay cash for it.

Because these people believe that bitcoin has no intrinsic value, they believe that bitcoin should not have any value.
So I've heard them say that bitcoin is a bubble every year, but it's have been up to $20,000. Please forgive me for laughing. ::)

The price of bitcoin is growing too fast. Therefore, many believe that it works like the Ponzi scheme.
They don't understand that bitcoin is the future for the financial system.

majority of those who called bitcoin a bubble wanted the price of it to drop hard due to panic sellers so that they can short in this market and make a lot of money and eventually buy a large amount of bitcoin at the bottom of the dip.
that I what a lot of whales have been doing in the past. I wouldn't be surprised to someday learn that a lot of these Wall Street whales have been buying bitcoin for years. you think Warren Buffet has not bought a lot of bitcoin yet?

if you want to know more about bitcoin, you should try to find lots of information about bitcoin. yes, there are many out there who are cornering that bitcoin is a bubble. but in fact the notion is very wrong. to find out more. you should spend some time looking for a lot of information and benefits from bitcoin.

knowledge is the basis for judgments about everything. if one's knowledge is limited, limited also one's mindset. so basically a bitcion is not a bubble that so many people say, even a country says it like that. so you'd better find out a lot of information about bitcoin. good for your understanding.

These people simply do not understand why something virtual can have such a great price, which is growing so rapidly. That is why BTC was called a bubble by some guys.

Because to many extent it IS a bubble investment. People are not buying Bitcoin because it is useful for them, but just because it rises in value. This should not be a reason, but a consequence. A consequence of its usefulness. But if its only usefulness (or main) is to rise in value, that starts to look like a bubble which cannot go on forever.

People who call things bubbles are best avoided. They enjoy pointing out the obvious or making up nonesense. I say obvious because everything in life is a bubble and will end. I say make up nonesense because they don't understand anything and think every investment will fail.

Ignorance of the bitcoin innovation and its approach to financial investments, payment and uses have made many speak of it as a bubble. proper education and enlightenment is important.

yes it is true that bitcoin is a bubble investment, it is because the price of bitcoin is unstable and the price can peak high and in the not too long time can also go down deeply, but I still invest in bitcoin because after me thorough since 2015 despite bubbles but bitcoins always have an opportunity to always rise in price, so when bitcoin prices go down I calm down just because I believe it will rise again.

people said it bubble for it's increasing value.....and it is right,i am also a inverster of it and when the price down i just keep patience for grow price because i know it will must rise ..

Bitcoin has value, they argue, because it could become widely used as an alternative to existing currency.  8)

Just check BTC price for 2017 year  :) Of course it looks like a bubble at one point of view. So people have reasons to think so. On the other hand it could be beginning of new technology age (blockchain). It is easy: some people believe in blockchain and criptocurrency, some people see just a bubble  :)

Exactly this.  Saying there's a bubble is an observation that valuations have gone beyond reasonable or rational expectation. Its not a slur against bitcoin its applied to any market, housing, commodities, shares, bonds from time to time.

If people dont think an 10 increase with in a year was bubble, they have a questionable sense of value.

Many people are still confused about Bitcoin, that's why they spread fud to avoid learning it.
Said from Investopedia (http://www.investopedia.com/terms/b/bubble.asp) refers to it as an asset driven by unwarranted, but exuberant, market behavior. It is basically a hike in price that has resulted in a lie or “false truth” about the actual value of an asset, and therefore presages a massive selloff.
Bitcoin are same as other economy asset investment. As the supply was limited to 21 million only, it will become scarce asset and when people want those things, it's value will rising.

the PRICE.. is not 100% VALUE

imagine it like a bathtub of water..
as the waterline increases steadily(true value) it stirs up the soap(speculation) and you see a load of bubbles above the water line.

when the bubbles burst, you still have the water line.
the water line is the true underlying value, the bubbles ontop is just the vapour/air ontop that cannot carry weight and will burst if peopl poke at it

Because they will not be the early adopters ...Who missed out an chance when it was cheap

And on other hand its purely Misconception...Lot of them dont understand how bitcoin or an blockchain works

There is a lot of people who said that bitcoin is a bubble investment and a lot of them know bitcoin ever since it was first released so how can you say that they missed it? And I think those people do not need to invest on digital currencies just to be a millionaire because they are already millionaires or maybe billionaires.


Bitcoin is the first digital currency after the many failures. People will obviously want to know more about this digital currency and the reason these people say something like that that means they know something. It may be true, it might be wrong, all I know is that I am earning and that is a good thing for me.

This is the concept that needs to be straightened out. Some people think if the bubble burst then bitcoin price will be 0, whereas the burst is a significant price decline after reaching the point of saturation. Though it drops dramatically, it does not make it completely worthless, as you say, it will only be the original price.

People may call it bubble because firstly it rose so big and now the prices are not stable.
the price is falling-increasing.
and there is big possibilty that it can go more low and burst up like bubble.

for actual bitcoin users meant by bubbles is bitcoin prices are able to provide a high exchange rate even not infrequently the user was surprised, bitcoin price bubble to make more and more demand from day to day.
 

Hey, dude it bitcoin. And Bitcoin is a cryptocurrency. The value of all cryptos is always fluctuating it doesn't have any constant value. They call bitcoin as a bubble investment because it's price always fluctuates. So in it, there is lot more risk included in it, so   act  as bubble itself.

The project KS monitor has its own training course includes a methodical guide video and books.

Bitcoin - fever or "bubble"?

Since the bitcoin wave in 2014 for more than $ 1,000 per Bitcoin, by the end of 2017, investors and financiers will have witnessed the rise of this digital currency as value continues. increased to $ 20,000.

Because the more people putting money in the more it goes up.  And when people take money out the price goes down. 

i think it is easy to explain why people call bitcoin is a bubble, look at the price of bitcoin now and compare it with the price in 2010, we will know bitcoin price has risen super fast in just few years, that is completely crazy to a currency, so anything goes up too fast will go down very quick, so many people lost their trust on bitcoin and call it a bubble.

Because the price has gone up very fast, and it is usually the case that the price grows fast, then it drops even faster.

main reason would be the lack of understanding what cryptocurrencies are, those comments tend to come from skeptics and or people who missed out on the early stages of investments. besides bitcoins seems to be highly volatile, this sparks the rumours that is it an investment bubble which will burst, comparing the whole situation to the infamos tulipmania.

There are some asset that have assurance of appreciating in future but bitcoin just base it value appreciation and depreciation on speculation. The price can change at any time That is why it is refer to as bubble.

It is true that Bitcoin's growth is growing rapidly and Bitcoin's price from year to year is always high, even if it is only temporary then it will rise again in an indeterminate time.

since that bitcoin is a volatile currency, they say that bitcoin is bubble since the future of the bitcoin is uncertain. But for me, I will invest in bitcoin since there is a lot of people still believe in this new currency.

There are a lot of them who called bitcoin as a bubble, most of them is worked in any Government specially the media. When we say bubble, it will burst and disappear. That is how they called bitcoin. However this rumor is not yet been proven since the bitcoin was created in 2009. In fact there are already a lot of people who started to loved and adopted bitcoin, because of, it is really profitable and usable, valuable, because of, it has a limited supply and being usable and most of all, popular.

Mostly these statements are coming from financial analysts specifically traders from stocks exchange, from what i am seeing from cryptocurrency it is a great threat for that market since they almost works the same i think they somehow acknowledge the presence of bitcoin and they want to make a fud out of it. Bitcoin is not a bubble investment, people are still in denial phase since it grows a lot in the past year and a price of a piece is unbelievable for something that is not physically present in this world.

Agreed. Those who don't know much about Bitcoin and the persons outside of crypto market spreads Bitcoin as bubble, actually share market is also a bubble some times but they won't say that as bubble and instead call it as bullish. Old traditional share market is out dated now and the future is crypto market or Bitcoin and there's no such bubble here and everything is real.

Probably, they don't have opportunity to buy it) and not competent in this field!

It is quite natural, any new project, idea, technology always has followers and opponents. In the case of Bitcoin the same, but many Bitcoin opponents who call it a bubble simply do not know about Bitcoin enough and do not understand the blockchain technology on which it is based. Even most rich and powerful people do not know about Bitcoin enough. The head of the American holding company Berkshire Hathaway, one of the richest people in the world, Warren Buffett, said in an interview with CNBC, which was published on January 10 that he sees prospects in Bitcoin and other cryptocurrencies. "In terms of cryptocurrency in general, I can say almost certainly that they have a bad ending, when it happens or how, I do not know," but he added that he did not know what the cryptocurrency is. But there are people who know in the blockchain technology who give more reasoned forecasts of the Bitcoin price, for example, the American investor and the founder of the hedge fund Morgan Creek Capital Management Mark Yusko in an interview with Bloomberg News explained why he believes that in the long term Bitcoin will cost $ 400 000. The expert announced his new forecast in November. Before that, he called two figures: $ 1 million in the future for 10 years or more under the best scenario and $ 500,000 for a more conservative view. In the interview, the first question was Bitcoin versus blockchain technology, to which Yusko immediately replied that "Bitcoin is a blockchain", and he called the idea of ​​allowing only one of them to be illogical. Then he answered a question on the forecast, comparing Bitcoin with gold: "It's just math. Bitcoin is the equivalent of gold. To date, about 20 million Bitcoin are available. Capitalization of the gold market is about $ 8 trillion. This gives you $ 400,000. And this does not include the use cases related to the currency. "He also believes that Bitcoin instills fear in the hearts of bankers, as it eliminates the need for banks. When transactions are verified in blockchain banks become unnecessary. "All the bankers must be afraid to death. Bitcoin can eliminate the need for banks as a trust... It can also destroy the banking sector in the form that we know, "said Yusko.

I think certaine people called bitcoin as s bubble investment because they do not have enough knowledge in bitcoin. All we know that bitcoin is like a business and before dealing with it or in any types of business you need to conduct study or learn it before you invest to prevent loss. If you are have lack of knowledge a big chance that your investment will be bubble investment or as simple as you are going to lose or disappear your investment in one blink of your eye like a bubble so they called it a bubble investment.So to avoid your investment to become bubble investment you must study or learn before investing.

In my own opinion, i think people called bitcoin as a bubble investment becauses like a bubble it can grow multiple times,
It can be sometimes big and can be sometimes small. But like a bubble it can also bursts.
When the bubble is too big it will reach its higher pick and then burst, like what happen to bitcoin when it reached its highest pick last year, the next week after reaching it, big drop occurs.

So until now I have heard people calling bitcoin a ponzi scheme, pyramid and also bubble. I don't believe any of these

true. That is their definition of bubble and bitcoin is actually like a bubble because of these repetitive cycle but despite that , many people are still believing on bitcoin because they can still earn a profit even if they know that the value of bitcoin is too volatile. rather they only use it as an adavantage , they do buy bitcoin when the price is low and they sell it whenever the price pump or increases. people who call Bitcoin as a bubble are actually a bitcoin enthusiast and they also invest in bitcoin.

This is due to the fact that bitcoin as a bubble, it inflates, then falls. Just like the bubble puffs and descends. This says that bitcoin is unstable. But, I think, this year, there is nothing to worry about.

When some people don't understand the currency, they think the bitcoin have no intrinsic value, but it is now the price is very high, the currency has also been banned in many countries, so they think the currency's investment bubble

I think that people who say that bitcoin is a bubble, are partially right. But this applies to all cryptonyms. The price for a token is very large.

Maybe those cerain people they have said that they call bitcoin as a bubble investment it is because it boom and their is a times the investment is gone without notifying that will be their observation. But for me that is part of the business that you are involved. The struggle that you are in today for the bitcoin that will be your strenght to be develop for tomorrows success.

There thinking is affected by past schemes that had similar behavior. They could not digest that people were able to double or triple their money in few months with bitcoin investment.

These people are judging bitcoins without doing any research about it. Do not worry about them, you cannot convince everyone.

Not only that but because they are generally vested in the traditional finance world that creates a bias and at the same time they generally don't want to see cryptocurrency succeed because it is the competition. Now the smart people would embrace it because they realize the change is good and that they can't stop it, but there are some ignorant people out there who are dead set on calling it a bubble until it pops, or goes to 1 million. They will not stop in between now and then, you watch.

Bubbles are incredibly difficult to pinpoint. Only in hindsight does it become clear.

Look no further than Bitcoin in 2013. Bubbled up to $1200 and popped down to under $200 thanks to Mt Gox. In the rear view mirror it appears obvious. At the time, it wasn't. Lots of the sentiment you hear now is exactly the same as what was being thrown around back then.

I'm not saying we're in bubble territory, but I'm not naive enough to dismiss the idea completely. What happens if China government regulation comes down hard? What if it comes out that Bitfinex is conducting massive fraud? These things could cause this to come tumbling down really quickly.

Being skeptical of current valuation after a 10X run-up in less than a year isn't necessarily a bad thing. Being blindly loyal is.

for me its simple.
IGNORE the high price and the "all time HIGH"..
instead look at the all time LOW
draw a line.. and that there is your resistant point. anything that goes stupidly above that in a short period has a higher risk of tumbling back down to the resistance point. but the resistance point is your safety net

Certain people called bitcoin a bubble because they compare it to assets, commodities, etc. that massively dropped its value in market history. It is also possible that they just know bitcoin is being traded and do not understand the whole concept of it. They fear what they do not understand. It is somewhat true that compared to previous bubbles, bitcoin has most of the definitions of a bubble, but bitcoin is entirely different than all these assets because it is a revolution in payment system leading to technological advancement towards the digital economy.

I recommend to start investing with a manager, for example, I started with Sergei Lihachev, you can find him on VKontakte.