Is Bitcoin a Bubble or Not?

[upsidedown75]

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.

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.

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.

[LUCKMCFLY]

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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[EdenHazard]

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.

[wheelz1200]

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

[romero121]

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.

[Falgorn]

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.

[noormcs5]

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.

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.

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.

[peter0425]

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.

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.

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). 

[julianderson671]

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. 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.

[yvesp110]

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. 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.