Bitcoin Forum

You must have heard about Bitcoin. Is it a get rich quick scheme, fraud or what? To know, read and become familiar with the mystery of Bitcoin. Almost a decade has passed since the invention of Bitcoin and cryptocurrencies.

Is Bitcoin Worth Investing?

   Bitcoin is a decentralized system with no political institution or central issuing authority controlling the exact amount of circulation. Essentially, it is structured on the blockchain technology. It is one of the secure modes of privacy in the digital and technological world.
   Bitcoin witnessed tremendous growth in 2017. The late December made a wide range of Bitcoin holders rich and in no time. Since then, a decline has been the fate of the Bitcoin and thus the rest of the cryptocurrencies.
   Should you invest in Bitcoin? None knows the absolute answer to be true. Nevertheless, a thorough examination of the past trends and the future trends speaks volumes about it.

Hodl or Sell?
   If you are a crypto freak, hodl must be familiar. It means to hold the amount Bitcoin a person is holding. The current prices of Bitcoin range between $3,000-4,000. A year ago, a single Bitcoin cost well above $15,000. Those who sold it were the winners.
   What about those who are still hodling? They must be foolish or something like that in your opinion. Do not rush to pass judgments.
   What if Bitcoin witnesses another uptrend that it received in late 2017? Bitcoin at $25,000, how does it sound? Amazing!
   

Replacing Paper Currency
   Thousands of cryptocurrencies are in the market. The king is Bitcoin. If the price of Bitcoin rises, other cryptocurrencies also accelerate. How long the trend of paper money and the manipulation of the bank will continue?
   Experts have claimed Bitcoin will be the new digital currency because of the safe transactions. It is very volatile though which makes it controversial. Primarily, the manipulation of whales and big guns dominate the decline and rise in the prices of Bitcoin.

The Future of Cryptocurrencies
   Bitcoin holders must be worried. The extremely low prices of Bitcoin are a dangerous sign for them. What hides In the future?
   Will Bitcoin reach a million dollars or the bubble will burst in the future? This question is killing the internet platforms these days. With immense money been put into Bitcoin, people are unsure whether to sell or hold their Bitcoins amid the crisis. Their condition is similar to the boy who is unsure and always cries in front of others to Write My Essay (https://www.5staressays.com/).
   The security of Bitcoin is also not absolute. Several instances have been reported where wallets storing the digital currency were hacked and looted. Without a shade of doubt, the blockchain technology can never be shattered in the current times. The fate of blockchain technology will change entirely after the advent of advanced computations and technology.

The Final Word
The blockchain technology is promising and has amazed everyone in recent years. The future of Bitcoin is neither bleak nor bright. Without several speculations and rumors, none can claim that it will reach this pri
e by the end of this year. A thing is for sure. The prices of cryptocurrencies will continue to face a decline in the near future.
If they do manage to witness a surge, it will be next to a miracle. For you, this is the right time to buy Bitcoin. If you desire to buy it in the future, the prices will certainly be higher.
So, invest what you can afford to lose and let Bitcoin do wonders for you. 

Bitcoin as an investment tool or vehicle can be one of the most volatile in recent history and as what 2017 and 2018 proved it can be dangerous to deal with most especially with people whose orientation or mindset is hinged on just making big profits or just to speculate without proper training...hence many people got burned. Right now, there is a great dip and nobody knows for sure when Bitcoin will be staging a big comeback to regain what it lost in terms of price. This is certainly not a child's toy and if one is not careful then it can be mind-boggling. Bitcoin can be for everyone but not everyone can be for Bitcoin...as it can get so hot to handle. However, many holders are steadfast in their faith that Bitcoin can still save their day soon. Hope that "soon" can really be coming soon. Oh, as to the bubble question...that all depends on one's perspective. As for me, it is not a bubble but it is just another normal investment tool that is subject to the law of supply and demand in the marketplace.

True Due to its high volatility when considering the price variation from 2017 to now Bitcoin seems like the biggest bubble in the history when you look from the outside because Bitcoin price dropped and that is why many say that but it is recovering perfectly so definitely it will reach to it's correct price in the future but it might take a while to happen that and the only thing it needs is more time so traders should be more patient in these days   

dont expect a good answer, everything is agenda driven, everyone says whats in his agenda.

First, NO! Bitcoin is not a bubble. I am not buying that FUD. I heard that many times whenever its price is going down, but bitcoin is still there, existing strong. I firmly believe that there's a lot in store for bitcoin in the economic and financial landscape, so it's far from bursting. Second, YES! It is worth investing. But of course, any wise investor won't invest what he cannot afford to lose. Sometimes, we lose because of impatience. No one knows how far this bear season will go. So if you are impatient and have the tendency to sell off before gaining profit, never break the no. 1 Rule of Investment. Third, hodling and selling are both beneficial, depending on your skill, capacity and level of patience. Hodling is good for long-term profit, provided you are hodling good coins, while selling and buying back is good if you have good trading skills.

Very informative, we have different opinions and thoughts about bitcoin and for me its not a bubble. Bitcoin is still worth to invest even if the price doesn't seems good and when it comes to holding and selling well it depends upon the situation. You can't just hold or sell you have to you have to consider some things.

From any perspective btc cannot considered as a bubble because the current price dip won't last long and Bitcoin will be better than fine in the future and many predict Bitcoin will be considered as a mainstream currency in the world and Bitcoin will definitely change the inefficient banking system and other traditional and non advanced organizations by proving blockchain based decentralized cryptocurrency transaction system to make faster, secure and better payments and transactions for any need from anywhere in the world at any time so in the future these qualities will make Bitcoin more popular among many individuals in the world so even the price has dropped there will be a certain rise very soon

Well in my honest opinion then yes it is somewhat of a bubble and almost starting to remind me of the same thing with the tulip mania.
Still not going to give up on this just yet since im somewhat invested and still see much promise in some of the projects.

A lot of ignorant people are going to lose patience and get hyped on a crazy dump of their coins and thinking quicker the market will turn upside. As a result of high unpredictability individuals may think about it as a bubble. This doesn't make sense. Crypto market isn't a bubble rather, it's a new market economy. Here to stay.

To respond to the question whether bitcoin is a bubble, we need to find the main characteristics of a bubble and see whether bitcoin has them. A bubble occurs when something costs way more than its intrinsic value and eventually collapses. Many contemporary economists believe in impossibility to identify a bubble before it collapsed. While bitcoin does not have an intrinsic value, it is not worthless. It is widely used and supported by various companies. At the same time, one could say that many things we rely on are potential bubbles. Take gold, for example. Easily breakable and essentially useless metal worth a lot more than materials that are actually better in many aspects. It is totally possible for gold to cost almost nothing at some point in the future, and yet we don't run around calling it a bubble. Okay, the crypto market was overhyped by the end of 2017, but it does not mean that it will not recover and cost just as much in the future, but being backed up stronger.

I think bitcoin is not a bubble, bitcoin is indeed unstable in prices that can soar and decline. I still think bitcoin is still worthy of being a worthy investment and can provide profits.

It is definitely not a bubble because bubbles are weak which can burst anytime. Bitcoin has shown fluctuation in the history but every time it turned around stronger. I know its prices are very low right but even if the price goes down by 90%, I believe it will come back with a huge surprise in the future. Bitcoin is decentralized currency and people are looking forward to it as a replacement of the fiat currency. It has the capability to replace the weak system of banks and provide people a chance to trade freely without any complicated bank systems. These qualities make it better than the fiat currency and it will bring many positive changes in the history of finances in the future.

Bitcoin certainly was a bubble in the period December 2017-January 2018...
Today, when its price is over 80% lower we can see it certainly ...

But for me it only means that its value was highly overestimated ... it does not mean that in the near future it will not climb into the same or probably even higher peaks ...

I'd like to remind you that a few (maybe a dozen or so) years ago we had an internet bubble on stock markets, the value of each online company was growing up rapidly until the buble has broken and all "new technologies" companies lost a lot of their value a lot, but the best ones have recovered these losses in a few years and reached new peaks - I think that it can be the same with bitcoin...

In 2017, we watched a golden rush for easy money and price of bitcoin went to nobody expected. But you can't defien bitcoin only by looking to 2017. Bitcoin has a potential to be used in many areas as a decentralized currency.

We should not understand as a scam the meaning of calling Bitcoin as a bubble. The reason for calling bubble is price volatility. We all know how volatile the price is and the possibility that the price will turn to zero at any moment. But surely if the price with the USD is not important for you, this conversation is useless and go ahead.

No-one is worried about the price of bitcoin, only the people that don't have enough cash right now to buy more as it is accumulation time. It will certainly pump within the next few months, possibly even weeks

For me bitcoin is not a bubble because since it was created and exist in crypto world,beside of ups and down to it's value,bitcoin is still there remains valuable even though we can see that the value of bitcoin become stable from the past year 2018. Well,it dependa on everyone opinion and underatanding regarding bitcoin. There is no exact answer for that. So,let's just keep on investing in bitcoin noatter what happen to the market.

I don't think you're correct,every investor,whether long or short,is paying close attention to the price of the bitcoin,as we all hope for it to boost and pump high,so as to give high return on investment.
No one can be sure when the price will pump,it may not be in the next weeks or months just like you said,it is unpredictable and can happen at anytime,speculating bitcoin price is a waste of time

I wouldn't say Bitcoin is a bubble, because it leads the whole cryptocurrency market and the price always recovers. Dumpcoins are mostly considered as bubbles, because once they pop, they don't go up again and they mostly die off when that happens and those people sho invested and waited more lose their money.

People always confusing themselves with the issue of whether Bitcoin is a bubble or not. Before thinking whether bitcoin is a bubble or not you need to understand the principles that govern a decentralized system. Blockchain technology operates under a decentralized principle where users have the opportunity to determine the price at which the sell or trade the crypto coin. Bitcoin follows this principle, holders of this coin determine the price at which they trade their coin. This causes the fluctuations in the price of Bitcoin at a point in time. Once you understand this principle, you will not see bitcoin as a bubble.

Bitcoin is a bubble, but now it explodes when it flies too high. Currently, Bitcoin is like a balloon, and it is waiting for someone to pump air into it so it can fly. We can now consider it something difficult but still have to wait.

I think that every financial active is a bubble. If someone can buy something higher than official price, the bubble will increase. It is the law of market. And I think that we are at the beginning of creating bubble in crypto.

No bubble, just boom and bust.

Bubble would have happened without futures.

This is what anyone who is in the crypto space and bitcoin investment need to understand, you invest what you can afford to lose. Bitcoin just like anything in this world has risks associated with it and people need to understand this. Decentralized environment is way different from that of the centralized one where a central authority controls the outcome of everything. Bitcoin operates in a decentralized platform where its market price is determined by its users and holders. Once we understand this fact, we will know that Bitcoin is not a bubble but just a digital currency with its price subjected to rapid change due to the nature of the platform it operates on.

Bitcoin is digital e currency payment have speculative price and bitcoin is not bubble, some time bitcoin could be on higher price and some time could be on lower, but you can take chance to invest and sell bitcoin when price is higher.

What if it was? We had the Dot Com Bubble and the Property Bubble a few years ago and look what happened. Most of the big companies bounced back after that bubble burst and they are back even stronger than they were before that bubble burst.

Property prices are back to normal in most countries where the Property Bubble burst and it is once again a good investment tool. People should not see a "Bubble" as a bad thing, but rather a opportunity to make some good profits when others are greedy. Sure this is not 100% ethical, but this is how Stock markets and the financial system work.  :P

many people said that the bitcoin is the big bubble that can pop anytime, but for people that believing on bitcoin, they are not believe on that things and believe that the bitconin can be use until end of the world, and i think bitcoin is free from inflation in the world., so bitcoin will safe when in all country has ecnomoic crisis

I think it is impossible to say this about the most important cryptocurrency, as it has a great dominance in the cryptocurrency market. I believe that in order to strengthen it, it needs to be introduced in all areas, as a means of payment.

It is not out of place for people to have divergent views of bitcoin. Just as you captioned it, bitcoin has stirred so many arguments for and against. It is not surprising. Bitcoin is set to upturn the way financial transactions are carried out. This is the core aim of bitcoin. Little wonder why there is interest especially from the government on control, while bitcoin is structured to take away this government control. Bubble or not is as a result of which side you belong.

I think by now, it's too far out in existence to consider Bitcoin as a bubble. However, I think many would still say that Bitcoin is still a bubble because many are believing that it's on its way to its downfall. I mean, I know what they mean, it has been having this negative image because it kept declining and declining with no light to see at the end of this very long and dark tunnel. But then again, I think Bitcoin has always had capacity to go back stronger everytime. I think that despite all the negativities happening, there's always a chance for everything to get better as all the things that the market needs would fall into place.

It depends on understanding and patience, because it can be our direction to regard bitcoin as a bubble or not, because of the unstable value of bitcoin.

Such questions about whether Bitcoin is a bubble or not - people will ask hundreds more 1000 times over the next decades, While the only right decision in terms of Bitcoin in my opinion has always been and there is a rule - buy and store. And nothing else is needed for your sucess.

Bitcoin is very worth to invest even the price now is very down. Until now we are not sure if bitcoin or other cryptocurrencies have chance to replace paper money but we are modern era where all of us always use internet so I think somewhere in the future there is small chance that cryptocurrencies might replace paper money. But, I want to say and I'm surely that bitcoin will never become a bubble.

As long as what you are doing is legal I do not see the problem of earning money in the markets, all the market participants are looking for the same thing which is to increase their capital, if there are a few participants that can take advantage of the distortions in the market then it is their duty to do so because if they do not then someone else will, some people see it as unethical but that is because they do not understand the market, but if they did and could get profits out of it they will do the same.

Bitcoin price movements are not just like bubble but bitcoin is more like a very large tsunami wave that will rise to high when there is good news and like what happens with waves in the sea will rise when there is a big earthquake.

Although the bubble helped the sector as such, it always burned people who came into play as the last.
Personally, i do not consider Bitcoin as a bubble for the following reasons:

1. Bitcoin is not a bubble, because the blockchain technology is revolutionary and changes life.
2. Bitcoin is not a bubble, because you need to stop the internet to stop the bitcoin.
3. Bitcoin is not a bubble, because if people are going to continue mining, will continue to increase.
4. Bitcoin is not a bubble because it is not controlled by the institution.
5. Bitcoin is not a bubble because more and more companies accept it as a form of payment.

And so it can continue.

☝☝☝ what?? A little bit too poetic dude to compare it to a tsunami lol. I agree that it's more like a balloon that's being deflated and inflated over time. It's constantly happening all throughout bitcoin's existence and will continue to happen way into the future.

Everything assets that are been traded in financial markets were one time to time bubble in price and bitcoin is not different.  I think bitcoin is not a bubble but an asset that is reacting to the market.

Bitcoin is a valuable asset and also the best solution that was invented for current financial problems but it was never a financial bubble but this situation was occurred because people started to use it as a trading commodity than a currency for real world payment purposes which is not a problem with bitcoin but a problem with its users greediness, stupidity and lack of creativity to use it in there businesses to gain benefits and profits so I hope at least in the future this will change

True, but it is their fault if they decided to invest in this market so late, it is not like bitcoin has been a secret or anything, bitcoin has been well known at least since 2013 so anyone complaining they lost money when they invested at the end of 2017 must not blame anyone but themselves because they were the ones that took so much time to invest in a market that was giving profits during a whole year before it crashed.

Bitcoin has the real intentions why it was created and we have seen how useful it is. The market manipulators had taken control of the market price which seems is not good to the small-time investors as they don't have the enough funds to sustain in the long bearish market. This is the point why bitcoin could be dangerous to people who can't afford to wait until the recovery. Whether it's a bubble or not the risk is too high which we need to consider before putting our funds.

Answer would be Bitcoin was never a Bubble and will never be one but many say that because during the previous price decrease the dip was much higher and losses were much bigger than any other time in the crypto market history so many traders lost there hard earned money instantly so with that kind of situation without understanding this as a temporary situation some say Bitcoin is a bubble in the financial history even it is not in reality 

First of all, you can learn for those who call bitcoin a bubble how they have changed their opinion because they have seen that it isn't, secondly, the price growth was expected due to mass adoption in 2017 and we are now seeing a price correction. Just like during the time when the internet was first launched, many company began to go create an audience on the internet and after a while, the a podge began to separate the good from the bad and only few companies stood.

No bitcoin not a bubble, even if it looks like that. And yes bitcoin is worth investing, but as is an investement, always invest only money that not need, because can take a lot of time to make profit and better always have cash money, because we can't get buy with bitcoin all we need.

Bitcoin may have bubble time to time but bitcoin markets itself cannot be a bubble like it cannot survive for more than 10 years without having actual concepts and potential. A bubble may attract more investors and scam them in very short period of time as just circulating the money is the only business there. Here, bitcoin itself a money and investment instrument.

In 2017, by November first week bitcoin got value of $10k which may not be a bubble by considering the investor base and hype but rising from $10k to $20k had happened within a 3 weeks of time which must be suitable for terming as bubble.

I do not see bitcoin as a bubble because of the tech following it which is causing almost every institution to apply it. The fear of missing out is on the increase because everyone knows that bitcoin is in to last forever and ever. If you don't learn the tech behind it, you will be a beggar in the next couple  of years.

In my own opinion, whether it's a bubble or not, whoever that wants to rush in and sell should go ahead  and do so. It's high time we purge this market from inconsistent traders and investors because part of the reasons why this market is unstable is because of many investors irrational fear and panic action of quick selling.

I don't think so, because if I think of bitcoin as a bubble then I will go away, the market price is indeed unstable and can decrease or increase high, and I prefer to react with patience.

Bitcoin is a only hope for all the cryptocurrency so all are accepting the market situation but few of them are still not accepting the fluctuation. We never guide the anyone because own analysis is teach everything in this society. Bitcoin bubble was successfully stopped in this month so we expect some bullish trend.

It is obviously not a bubble only thing those who keep on saying either does not want others to invest in it or they cannot invest due to some reasons and want others also to stay away from the money making opportunity. So understand and do you research and buy it.

Yes, it's good to have a self analysis on the market and make an investment. Different people come with varied opinions on bitcoin. People who missed the opportunity to make an investment when the price was low and looking its tremendous growth state it as a bubble. This is people's mentality and for this I never consider it a bubble. Analyzing the growth will give an outline, but if one has got a fixed mind it is hard to change.

I think it's not bubble because simply Bitcoiny-USD has a well-defined structure, (My analysis is based on Wyckoff's Philosophy) and taking into account what Malkiel Burton says in his book "A Random Walk by Wall Streeth" the bubbles have a structure of a large PUMP and fall without recovering, like this:


On page 44 of the book, this is a representation of a bubble-style chart when the South Sea Companies passed.

Based on my personal analysis Bitcoin-USD has a clear structure, representing a business model, where there is a large volume, and I dare to say that we are in the Accumulation phase ...

http://i63.tinypic.com/fn61yb.jpg

Its volume clearly represents that Bitcoin-USD can not be a bubble because of the number of operations that there are every day, in a few months, years, or as long as necessary we will see the growth of Bitcoin and will have new highs where there will be many new millionaires. For this reason it is not a bubble. Do you think the same as me? Someone else that can give me your opinion.

Whenever there is a price pumping some news will come out stating bitcoin is a bubble. There is no need to be worried whether bitcoin is a bubble or not. We need to read the market and invest. If we keep on examining whether it is a bubble scheme what we gonna miss is the opportunity to invest at the low bottom.

I think that BTC was in a bubble in 2017, but that is almost nothing compared to new bubbles which will come in next few years. BTC is nothing like tulip mania, because tulip bubble burst only once and never came back.

Bitcoin is one of the important building blocks for the market. There is no doubt the future will have much older than the level where I think back to the very important place.

Bitcoin bubble for a while as to whether there is nothing definitive to me. It just needs a bit of improvement will determine when something important measure of the market has to come a little more proper place.

With prices that can pump high and also fall then it will be like a bubble, but that's just an assumption and I don't think hard about it. No need to panic, bitcoin still has the opportunity to grow again.

Bitcoin is a precious gem where you would have seen its potential in 2017, it's clear that BTC is a Star competitor in crypto market. Don't panic and don't be optimistic Bitcoin still leading as a number 1 coin without any doubt. Just believe in this.

The foundations of cryptocurrencies is bitcoin and it is standing today in all structures of cryptocurrencies.  Bitcoin should be trusted as to me it is the future of cryptocurrencies and fiat money.  I have see people saying bitcoin is a bubble but it is not a bubble to me.  The up and down of the cryptocurrencies pricing is a sign that activities are going on in cryptocurrencies market.

Tulip mania doesn't have anything to get relative to the bitcoin. What we see with bitcoin is the real growth, at times there were little price manipulation and the same gets termed as bubbles if it provides with a large scale profiting. Growth waves will continue to be a part of cryptocurrency, and this at times gets mentioned as bubbles. Nothing is gonna happen on these indications.

The biggest way to consider this or similar questions would be via contrast.   There is no perfect currency, all have some inefficiencies to them and a purpose and utility gained over what would be simple barter otherwise which of course causes lots of problems and restriction to trade.

Just on the basis could BTC mobilise trade that otherwise would never exist, yes it is justified.  Is it the best product out there is another question and will take longer to consider because the whole sector is new and developing.
I think BTC as a currency is best suited towards digital goods rather then physical, it can do anything but to me I think that is its most likely sucessful domain.  Digital goods is a growth sector so I dont see BTC is a bubble or likely to disappear.   It could still be that a better product replaces it, society as a whole will favour the product which does the job best and that is the way it should be.


Also a big question to consider is that bubbles or inaccuracies in pricing do not exist in isolation.   We have ongoing currency worth mixed with QE programs that have never been reversed, its likely this is related to BTC pricing and all currencies worth imo

Macro economic view of possible bubbles (not just BTC) - https://www.dlacalle.com/en/back-to-fundamentals/

Unlike money circulating programs, bitcoin got many real-life applications which makes it worth to invest hence bitcoin cannot be a bubble. It is gaining value for its utility and usage for real-life needs. Sometimes, bitcoin prices may get pumped to beyond the demand levels and then it might get burst out. That is common for any commodity. If bitcoin is a bubble then gold is a also a bubble because gold also has nothing different from bitcoins. Gold is a just a metal and only due to demands its gaining its value whereas bitcoin is a digital asset and lives only in electronic format and this also gaining its value exact similar to gold.

This is correct, can not be taken as a bubble to what is an economy that practically no state or banking agency can control, and that feeling of freedom is what has always been sought, only supply and demand are the determinants and represent to bitcoin. The technology can be seen in different projects, blockchain is here to stay, the best representation of all these advances are thanks to Bitcoin.

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I don't have much knowledge about economic bubble but I don't even think that bitcoin is include to economic bubble. See the history of economic bubble which has happened and you can comparing it. Now, I see bitcoin is the alternative for everyone to make a transaction or they can make as a tool for money transfer because it will be easy if we use bitcoin, so as this demand will occur for a long time as long there is a new tool who can do it and everyone believe to the tool. Other than that, lots of people use bitcoin as alternative investment place which has been making many people got wealth from it, and I do believe for those people who has felt it will make him comfortable using bitcoin and this will make bitcoin can be trusted.

Simply put bitcoin is not a bubble.  What prices do on a month to month basis its anyone's guess.  But the utility of btc grows month over month, year over year.  It might take awhile but cryptocurrency as a whole is here to stay.  I'm excited about the future for crypto and what it can possibly do to world economics

When there is positivity surely there will be something negative. Same is happening with certain group of people who doesn't know much about bitcoin, but looking the growth used to mention it a bubble. From my experience it is the inability of the people, because out of frustration and unable to make an investment that could've profited them good is the reason for this kind of statements mentioning bitcoin a bubble.

Of course, Bitcoin can be called a financial bubble, since it is not secured in any way and its price is formed solely on the ratio of supply and demand for it in the market. However, this still means little. The dollar can also be called a financial bubble, because it has not been provided with anything since the seventies either. However, the financial system continues to operate.
Bitcoin now does not represent a big risk for investors. Increased risk level will be when it reaches high price values. Then lucky one who has time to dispose of their investments. There are still many surprises ahead of us.

Bubble when burst never return back but this is not what happens with bitcoins. Bitcoin might make lower lows in bear trend, but it do always recover well. Since bitcoin adaption is increasing on daily basis, we will less frequently see the bitcoin pump and dump situation and bitcoin will rather emerge as a stable currency.

Yep, that's right, so indeed bitcoin is a bubble, but wait, how can we categorically says its a bubble when it can recover after being burst? And that is the mystery that's why many are intrigue about it and why many are anti-crypto (specially those old fart/traditional economist).  ;D

The Bitcoin bubble and tulip bubble are both somewhat unusual because the assets being traded aren't expected to produce any kind of revenue for owners. When someone buys a technology stock, they expect the company to eventually become profitable and pay dividends. You can say the same thing about railroad stocks in the 19th Century and radio and airplane stocks that contributed to the stock market bubble in the 1920s.


Goldfarb compares bitcoins to assets with "artificial scarcity" like fine art. "It'll have value so long as people believe it has value," Goldfarb says.

We shouldn't take this line of argument too far, however. Bitcoins don't pay dividends, but their value can be pushed upward if a lot of people start using the Bitcoin network. The supply of bitcoins is permanently capped at 21 million. So if a lot of people want to make payments over the Bitcoin network, the value of bitcoins will need to rise (or at least stay at high levels) to accommodate that demand.

The other, weirder possibility is that bitcoins could prove to be a digital version of gold. Gold's value defies conventional market analysis in much the same way bitcoin's value does. Gold doesn't pay a dividend and only about 60 percent of the world's gold supply is devoted to jewelry or industrial use.

A lot of gold is held in vaults and under floorboards as a long-term store of value and a hedge against inflation and global turmoil—and this kind of speculative trading has a big impact on gold's price. If enough people continue believing that gold is a good investment, this becomes a self-fulfilling prophesy.

Something similar could be happening with an emotional support animal (ESA) Letter (https://www.realesaletter.com/sample-esa-letter). Bitcoin now has a large subculture of "hodlers"—a deliberate, whimsical misspelling of "holders"—who make it a point of pride that they hold on to their bitcoins as a long-term investment regardless of short-term market fluctuations. The hodler ideology could be self-fulfilling in much the same way that goldbug ideology is: the more people who come to believe that bitcoins are a good long-term store of wealth, the more it will be a good long-term store of wealth.

Correction: This article originally said jewelry accounted for a small fraction of gold usage, but it's actually about 60 percent.

I think we have seen enough performance in the crypto space so far and I think that it would be sought of absurd to called Bitcoin bubble because it has been pretty amazing so far in the market so far. In addition, the great companies in the IT sector like Microsoft or companies like Facebook have embarked upon the journey to crypto specialization. So there are not enough evidence to call it bubble.