5 Reasons Why Bitcoin Price is Not Tulip Mania: Nasdaq.com

[StockBet.com]

5 Reasons Why Bitcoin Price is Not Tulip Mania: Nasdaq.com
https://cointelegraph.com/news/5-reasons-why-bitcoin-price-is-not-tulip-mania-nasdaqcom

1. The Growing Acceptance of Bitcoin as Legal Tender
2. Increasing Merchant Adoption
3. Bitcoin Is Increasingly Acting as a Store of Wealth in Distressed Economies
4. Bitcoin Has Only Just Gone Mainstream
5. Bitcoin’s Supply Is Limited

The only thing that can derail this is the scaling issue.

Bitcoin is back up to $5,858.

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[CoinsCoinsEverywhere]

5 Reasons Why Bitcoin Price is Not Tulip Mania: Nasdaq.com
https://cointelegraph.com/news/5-reasons-why-bitcoin-price-is-not-tulip-mania-nasdaqcom

1. The Growing Acceptance of Bitcoin as Legal Tender
2. Increasing Merchant Adoption
3. Bitcoin Is Increasingly Acting as a Store of Wealth in Distressed Economies
4. Bitcoin Has Only Just Gone Mainstream
5. Bitcoin’s Supply Is Limited

The only thing that can derail this is the scaling issue.

Bitcoin is back up to $5,858.

I think that bitcoin has a lot more growth potential.  But I think there are other things that could derail it.  One is a concerted effort by major governments to ban or regulate it to death.  Another is the emergence of a superior coin that could replace it.  As things stand right now, most of the crypto I have is in bitcoin for growth purposes.  But when trying to move money around, I prefer not to use bitcoin.  It takes way too long, and the transaction fees are way too high.  I think it's a great investment asset, but I don't think it's a great currency.

[alyssa85]

There isn't that much merchant adoption. The combination of high fees and people hoarding their coins means that adoption has stalled for a few yars.

I think in the end bitcoin will be a store of value and an alt will be used for purchasing stuff.

[Wind_FURY]

I will give it one reason, utility. Bitcoin is very useful for doing transactions that you want to do outside the financial system. If you know how to use Bitcoin, it can still be untraceable and private.

It is also very useful for moving your money across borders when you travel. I believe the limit you can bring with you is $10,000 if you enter another country. With Bitcoin, you can move millions with you if you want. All you need is internet access.

[iamTom123]

5 Reasons Why Bitcoin Price is Not Tulip Mania: Nasdaq.com
https://cointelegraph.com/news/5-reasons-why-bitcoin-price-is-not-tulip-mania-nasdaqcom

1. The Growing Acceptance of Bitcoin as Legal Tender
2. Increasing Merchant Adoption
3. Bitcoin Is Increasingly Acting as a Store of Wealth in Distressed Economies
4. Bitcoin Has Only Just Gone Mainstream
5. Bitcoin’s Supply Is Limited

The only thing that can derail this is the scaling issue.

Bitcoin is back up to $5,858.

I think that bitcoin has a lot more growth potential.  But I think there are other things that could derail it.  One is a concerted effort by major governments to ban or regulate it to death.  Another is the emergence of a superior coin that could replace it.  As things stand right now, most of the crypto I have is in bitcoin for growth purposes.  But when trying to move money around, I prefer not to use bitcoin.  It takes way too long, and the transaction fees are way too high.  I think it's a great investment asset, but I don't think it's a great currency.

Certainly, Bitcoin is not yet perfect and there are still so many thing that has to be improved for it to reach its high potential especially as a currency. As a store of value, Bitcoin can easily play that role well. It is with the currency use that we can see some issues and challenges that is why many merchants are still shying away from accepting Bitcoin as mode of payment for their good and services. The scaling issue (as well as charges) is something that the Bitcoin community and decision makers have to deal with seriously.

On being just another tulip mania bubble, I think the market has now become too sophisticated for that. Remember that tulip mania happened centuries ago. Right now, due to the presence of the internet, people are already more learned and if they are to give nod to something they always make sure they know what they are getting into. People these days are not as ignorant in the past and though greed remains the same Bitcoin has the mechanism of corrections to deal with the matter.

[Iranus]

To be fair, this article doesn't have to reflect the views of Nasdaq - it was written by a third party and they clarify that on the article.

2. Increasing Merchant Adoption

Bitcoin's merchant adoption has not risen significantly since the start of the year.  In fact, Fiverr mysteriously stopped accepting it in February.  In any case, it would be very hard to justify the price multiplying by five to six.

4. Bitcoin Has Only Just Gone Mainstream

This is both meaningless and false.  There is no definitive point at which Bitcoin suddenly "becomes mainstream".

5. Bitcoin’s Supply Is Limited

It was limited a year ago as well.
The other two reasons are somewhat justified, but they still don't make a price this high reasonable.

[dothebeats]

5 Reasons Why Bitcoin Price is Not Tulip Mania: Nasdaq.com
https://cointelegraph.com/news/5-reasons-why-bitcoin-price-is-not-tulip-mania-nasdaqcom

1. The Growing Acceptance of Bitcoin as Legal Tender
2. Increasing Merchant Adoption
3. Bitcoin Is Increasingly Acting as a Store of Wealth in Distressed Economies
4. Bitcoin Has Only Just Gone Mainstream
5. Bitcoin’s Supply Is Limited

The only thing that can derail this is the scaling issue.

Bitcoin is back up to $5,858.

1. I wouldn't say that there is a growth in acceptance of bitcoin as a legal tender. Some countries who voiced their concerns about the coin is either unsure about it or are just looking into it first but not openly accepting it YET. It's still a good thing, though since the talks are in the table and could result into a good news once everyone is certain what bitcoin really is.

2. Not seeing them yet except for the rumors about Amazon considering to accept bitcoin in their online stores. There's still a few independent merchants out there that need to learn a thing or two about bitcoin before accepting it in order to prevent losses on their side.

3. I agree to this. For someone who's living on a country with unimaginable inflation rates, bitcoin is a safe haven to store assets without the risk of devaluing them over time.

4. Mainstream? I don't think so. Hitting the mainstream news/media is a fact, but being used mainstream? It's far from that.

5. The deflationary nature of the coin makes it valuable and worth the hold. No one can create money out of thin air (I'm looking at you, quantitative easing) and no need to force some regulations in order to ensure that the money is circulating well lol.

[CoinsCoinsEverywhere]

On being just another tulip mania bubble, I think the market has now become too sophisticated for that. Remember that tulip mania happened centuries ago. Right now, due to the presence of the internet, people are already more learned and if they are to give nod to something they always make sure they know what they are getting into. People these days are not as ignorant in the past and though greed remains the same Bitcoin has the mechanism of corrections to deal with the matter.

I would not count on any of this.  Human psychology is still human psychology, which you seem to agree with since you said that greed remains the same.  Look at the US housing bubble back in 2006/2007.  Despite housing prices reaching ridiculous highs, there were still plenty of people who just kept investing money in mortgage-backed securities, companies that kept investing in credit default swaps, etc.  Then there was the oil bubble in 2008--again, people just kept buying until the bubble burst.  People do have better access to information than at any time in the past.  But 1) that doesn't mean they use it (many people don't research stuff like they should, probably in part because that takes a lot of hard work to do well), and 2) there is a lot of info, but there's a lot of info on both sides (e.g., for and against bitcoin).  You will find plenty of experts (whether they are or not) claiming that bitcoin is going to go to $10k+, and you'll find plenty that think it's a fad/fraud/bubble that's going to pop/crash and never recover.  How do you know whom to believe?  In fact, isn't it possible that all the info on the internet is leading even more people to believe that investing in bitcoin is a sure bet?  If that does happen to be true (I really don't know if it is), then bitcoin might be in a bubble that's far greater than any ever seen in history.  The tricky thing about bubbles is that they're usually hard to spot except in hindsight.

[DustyRah]

5 Reasons Why Bitcoin Price is Not Tulip Mania: Nasdaq.com
https://cointelegraph.com/news/5-reasons-why-bitcoin-price-is-not-tulip-mania-nasdaqcom

1. The Growing Acceptance of Bitcoin as Legal Tender
2. Increasing Merchant Adoption
3. Bitcoin Is Increasingly Acting as a Store of Wealth in Distressed Economies
4. Bitcoin Has Only Just Gone Mainstream
5. Bitcoin’s Supply Is Limited

The only thing that can derail this is the scaling issue.

Bitcoin is back up to $5,858.

I think that bitcoin has a lot more growth potential.  But I think there are other things that could derail it.  One is a concerted effort by major governments to ban or regulate it to death.  Another is the emergence of a superior coin that could replace it.  As things stand right now, most of the crypto I have is in bitcoin for growth purposes.  But when trying to move money around, I prefer not to use bitcoin.  It takes way too long, and the transaction fees are way too high.  I think it's a great investment asset, but I don't think it's a great currency.

I do agree that the transaction fees are starting to get ridiculous with Bitcoin. If you are not in a hurry, you can reduce the fees you want to pay and it will still go through though it will take a bit longer. I have been able to pass through transactions with extremely low fees though it did take quite a bit longer to process. All in all, I am quite unhappy about the fact that these fees are starting to get higher and higher.

The above reason is why no one will be able to use Bitcoin to go grocery shopping and that will result in Bitcoin always being the black swan in the family of payment processing.

[CoinsCoinsEverywhere]

5 Reasons Why Bitcoin Price is Not Tulip Mania: Nasdaq.com
https://cointelegraph.com/news/5-reasons-why-bitcoin-price-is-not-tulip-mania-nasdaqcom

1. The Growing Acceptance of Bitcoin as Legal Tender
2. Increasing Merchant Adoption
3. Bitcoin Is Increasingly Acting as a Store of Wealth in Distressed Economies
4. Bitcoin Has Only Just Gone Mainstream
5. Bitcoin’s Supply Is Limited

The only thing that can derail this is the scaling issue.

Bitcoin is back up to $5,858.

I think that bitcoin has a lot more growth potential.  But I think there are other things that could derail it.  One is a concerted effort by major governments to ban or regulate it to death.  Another is the emergence of a superior coin that could replace it.  As things stand right now, most of the crypto I have is in bitcoin for growth purposes.  But when trying to move money around, I prefer not to use bitcoin.  It takes way too long, and the transaction fees are way too high.  I think it's a great investment asset, but I don't think it's a great currency.

I do agree that the transaction fees are starting to get ridiculous with Bitcoin. If you are not in a hurry, you can reduce the fees you want to pay and it will still go through though it will take a bit longer. I have been able to pass through transactions with extremely low fees though it did take quite a bit longer to process. All in all, I am quite unhappy about the fact that these fees are starting to get higher and higher.

The above reason is why no one will be able to use Bitcoin to go grocery shopping and that will result in Bitcoin always being the black swan in the family of payment processing.

There was one time several months ago that I paid the recommended transaction fee (which I later verified as reasonable for the size of the transaction), and even after 24 hours it hadn't gone through.  I had to use some kind of transaction accelerator, and even with that I think it still took at least several more hours to get the first confirmation.  That is simply unacceptable if you want to buy something or place a trade.

[HeRetiK]

1. The Growing Acceptance of Bitcoin as Legal Tender
2. Increasing Merchant Adoption
3. Bitcoin Is Increasingly Acting as a Store of Wealth in Distressed Economies
4. Bitcoin Has Only Just Gone Mainstream
5. Bitcoin’s Supply Is Limited

6. Lack of attractive investment vehicles besides stocks

There isn't that much merchant adoption. The combination of high fees and people hoarding their coins means that adoption has stalled for a few yars.

I think in the end bitcoin will be a store of value and an alt will be used for purchasing stuff.

Unfortunately, yes. But while I hope to be able to use Bitcoin as a currency in the future, I'd also be fine with Bitcoin remaining a store of value. It's still easier to handle and trade than any of the traditional alternatives.

[J. Cooper]

The points listed are valid. Another point that might apply as to why bitcoin is different from all the other assets, is the fact that all bitcoins problems are so damn fixable. A couple of months ago transaction fees were becoming unbearable but now we've got segwit that atleast eases the problem. Scaling in general is another 'problem', we know how to solve it, heck, we already have multiple solutions we just can't agree on which one to use. We also already have a system that would allow for instant transactions.

[Rahar02]

I will give it one reason, utility. Bitcoin is very useful for doing transactions that you want to do outside the financial system. If you know how to use Bitcoin, it can still be untraceable and private.

It is also very useful for moving your money across borders when you travel. I believe the limit you can bring with you is $10,000 if you enter another country. With Bitcoin, you can move millions with you if you want. All you need is internet access.

And how exactly you're going to exchange Million of dollars in foreign country? As you need bank account and exchanges should comply with AML and KYC regulations. Even OTC trading through localbitcoins may hardly to execute.
On the other hand, bitcoin utility as a digital currency for daily transaction is different in every country, depends on bitcoin acceptance in a country and how much merchants accept bitcoin payment.
However, bitcoin price keep growing with just few big countries allowing their citizens to deal with bitcoin, imagine if more countries become more friendly with this technology.

[JanpriX]

And these are the reasons why people should invest to BTC now or they will miss the train for greener pasture. It still has the potential to grow even more in the coming years (in terms of price appreciation) and I think, we are just starting. People are still not accepting the fact that BTC has value and could give them profit as an investment tool if they buy it at a good price. Long-term outlook is looking very strong.

[Pfizer]

There isn't that much merchant adoption. The combination of high fees and people hoarding their coins means that adoption has stalled for a few yars.

I think in the end bitcoin will be a store of value and an alt will be used for purchasing stuff.

The full adoption of bitcoin won't happen in a blink of an eye. We're still in the very early stages of bitcoin and blockchain era. The sector needs more time to spread itself across the countries and the continents. As this happens, merchants will start to accept BTC as well.

[Don Pedro Dinero]

I think the article is right in showing some arguments that support bitcoin not being a complete bubble, although some of them aren't very accurate, as some comments have pointed out. When we talk about bubbles we usually do it with two different meanings:

1) A complete bubble, like the tulips one, which refers to an expensive asset with real value near zero.

2) An asset which is currently overpriced, so it is likely to go down in price but without being a complete bubble, like the former one.