Why economists say Bitcoin a bubble

[dulce dd121990]

if that was the opinion of the economists, then i think he is wrong. I don't believe bitcoin is like a bubble, because if so, why do rich people keep investing in btc? and why lot of people become rich because of btc?

[buwaytress]

There were (or are?) some valid points from the general economist's point of view. You have to remember that economists study theory and are taught how global finance and economy works. If you're a realist, you find some holes in those theories and structures, but as well you see the merit of some.

To give you an example of what economists thought of Bitcoin in 2014, maybe you can see this short slide: https://www.slideshare.net/i_heresss/techtalk-bitcoin-burn

I particular: Gresham's law and regulation.

Today, more than three years later, some of their arguments are stronger, but some are not, particularly when it comes to regulation.

Disclaimer: I read stuff like this with some amusement, but it's always good to comprehend the critics.

[Aamir1]

They must have their own reasons to think or say like that about Bitcoin. Their business is not based on Bitcoin, nor they have any investments in Bitcoin, so they get nothing nor they lost anything by saying something good or bad about Bitcoin to anyone, so the better is not to listen what they say. But to be honest, maybe what they say is not totally senseless, since Bitcoin is just a digital currency, though it has been around for a lot of time now and it has gained a very large number of users by now, and price it has is also to be mentioned, but beyond all that, we should always keep in mind that Bitcoin is not really backed by anything or anyone. If, lets assume, Bitcoin drops its value like hell and become worthless in a year or so, i know it doesn't sound realistic but if it can grow so rapidly it can drop like that as well, so if something like that happens, who will the people blame? Where will they go? What will they do? Since it all revolves around internet without any person or authority associated with it, we can only sit and cry over our losses if something like that happens.

[layoutph]

Economist are people with wide understanding of economic money price cycle. I guess they base their bitcoin opinion on Bitcoin price chart. Yup based from the BTC chart Bitcoin is over bought. I believe someday it will explode to tank for a much higher price.

[sofi@]

Economist don't give so much time learning about bitcoin this merely the reason why they are not that believing in bitcoin. Up to this moment they think that bitcoin will not sustain in the market and what we are having now can suddenly lost in an instant. Economist believe that tge value of bitcoin is only temporary but since they do not understand sooner in the future they will be amazed how bitcoin change the economy

[McKane]

if that was the opinion of the economists, then i think he is wrong. I don't believe bitcoin is like a bubble, because if so, why do rich people keep investing in btc? and why lot of people become rich because of btc?

Bitcoin having potential influence to make everybody rich since take a gander at the market take a gander at the financial specialists proportion individuals will put even from initial arrange in bitcoin so what do you need more from bitcoin. Bitcoin is expanding on every day base which is very valid.

[Lieldoryn]

if that was the opinion of the economists, then i think he is wrong. I don't believe bitcoin is like a bubble, because if so, why do rich people keep investing in btc? and why lot of people become rich because of btc?

It is not an indicator. Bitcoin is very similar to bubble. But any pyramid always brings good money to those who started to invest money in it. Bitcoin purports to be a currency. But we see that sellers are reluctant to use bitcoin. It can be solved only in case if the turnover of bitcoins in trade and manufacture. Until this will not be bitcoin is at risk.

[Theb]

if that was the opinion of the economists, then i think he is wrong. I don't believe bitcoin is like a bubble, because if so, why do rich people keep investing in btc? and why lot of people become rich because of btc?

It is not an indicator. Bitcoin is very similar to bubble. But any pyramid always brings good money to those who started to invest money in it. Bitcoin purports to be a currency. But we see that sellers are reluctant to use bitcoin. It can be solved only in case if the turnover of bitcoins in trade and manufacture. Until this will not be bitcoin is at risk.

Well that is how a bubble works people give Bitcoin their perceived value without any financial background backing their claim. There are no fundamental indicators but purely technical ones on determining only the flow of the prices but it cannot give us an exact fair market value for Bitcoin. Comparing it to stocks if vompanies you will no financial performance of it and also comparing it to fiat currency there where a country's economic performance is areflection for its price.

[hase0278]

I talk to big economists they say Is only a Bubble my thought Is no bitcoin Is revolution of economy even doesnt have a background like gold the value Is power of the people what do you think?

Big economists says that bitcoin is a bubble because they doubt it for it's fast increasing price. Probably if they got to know more about it, they might get interested with btc considering that it gives off faster profit than stocks. It's adoption also increases day by day which makes it go upward and downward depending on the latest happenings. I also think that some economist have already invested on btc but for some reason they are trying to get people away from bitcoin specially newbies.

[Ctn]

I talk to big economists they say Is only a Bubble my thought Is no bitcoin Is revolution of economy even doesnt have a background like gold the value Is power of the people what do you think?

That looks like a translated sentence from different coin. Well, what I understood I will answer that one. The economist will say many things about bitcoin obviously in negative way. But the original review must be taken by people like us who are actually using it in daily life. The value is power, agreed to that, and why don’t you see power in bitcoin after knowing that it has already surpassed the ounce gold back in early 2017. I mean isn’t that is enough value for bitcoin to have great power. The applications are increasing as well which means it is more than gold which is just metal and nothing much.

[malikusama]

I talk to big economists they say Is only a Bubble my thought Is no bitcoin Is revolution of economy even doesnt have a background like gold the value Is power of the people what do you think?

What i have observed that economists are good with the fiat and paper money, they don't have any well awareness of bitcoin and cryptocurrencies. And one more thing mostly economists are linked with banks and government that's why they don't want to convey positive aspects of bitcoin and cryptos.

[Biggapp]

Mostly because it's not backed by any asset. Its value is derived purely from supply and demand, so it could theoretically pop any second. People who actually hold bitcoins know this will not happen anytime soon though.

It is right not of the people who have invested the money in the bitcoin for those who are having the soft price and the low income of the bitcoin. In the future the bitcoin value was not very high but now the transaction of the bitcoin is high and the people who are investing in it are having the strong faith on the bitcoin, for sure a lot of the people are using bitcoin for the increasing price.

[sunsilk]

I talk to big economists they say Is only a Bubble my thought Is no bitcoin Is revolution of economy even doesnt have a background like gold the value Is power of the people what do you think?

They will always say that bitcoin is a bubble, they don't know what they are talking when it comes to bitcoin.

They have no ears to hear those people that will say that bitcoin is one of the best investments that existed to their entire life.

I don't even know why they are called economists because they are not the usual economists that we need and they are all saying what's on their opinion.

[--PrettyCryptoGurl--]

I talk to big economists they say Is only a Bubble my thought Is no bitcoin Is revolution of economy even doesnt have a background like gold the value Is power of the people what do you think?

I probably would have believed you if you talked to just a 'small' economist. And why is that? Because, "...time and time again, the majority of economists make spectacularly wrong calls, and it is a small, despised minority that gets it right [emphasis mine]."  This, from an article entitled Economists have a century of failure behind them.

'Nuff said.

[crypto_bit]

Nobody wanted to buy BTC when it was trading at 200 USD over 2 years ago and it was the SAME technology as it is today   Now surprisingly people say its undervalued at 6k USD.

Remember that price goes up bot because it's a great technology buy because there is a demand (fomo) and big holders aren't dumping. As soon as some 100k+ holders will decide to cash out you will see BTC dumping to 1-1.5k USD.

Moreover BTC mining is very inefficient and consumes more and more energy plus with the rising price the cost of transaction is skyrocketing making BTC completely useless as a medium of exchange.

Not exactly the same technology cause new BIPs come in. Bitcoin is kind of auto-developing payment system and I think it is a good alternative to centralized way of upgrading software.

[idahosk]

In my personal opinion, BTC is some kind of bubble, almost for sure. % gain in so short time is so huge, that some kind of major correction is very possible to see. BTC is smart idea and is something major for many people, but better potential as BTC I see in blockchain, as in BTC. Bitcoin will be more like store value, as payment option.

[Hydrogen]

Food for thought.

Amazon's stock price has jumped from $18 per share to nearly $1,000 per share.



Warren Buffett's berkshire hathaway stock has gone from $290 to being worth $284,570.



Here we have examples of tremendous growth being sustainable in the financial world.

I think that the area where economists have trouble is, they don't make an effort to differentiate between bitcoin's growth and the growth of stocks like amazon and berkshire hathaway.

There aren't many economists who have real world experience trading or applying economics principles in a way that is reliable or consistent.

[bitllionaire]

I talk to big economists they say Is only a Bubble my thought Is no bitcoin Is revolution of economy even doesnt have a background like gold the value Is power of the people what do you think?

What i have observed that economists are good with the fiat and paper money, they don't have any well awareness of bitcoin and cryptocurrencies. And one more thing mostly economists are linked with banks and government that's why they don't want to convey positive aspects of bitcoin and cryptos.

I think very little economist may have the same view. but i am sure that majority of them will consider the increase in the price of bitcoin as solid one. i am sure that the increase in the price of bitcoin is due to the high demand and interest of the people and we can see that their demand is still increasing from time to time. Therefore we can expect to see the price of bitcoin trading in more high price.

[Fireblade]

I talk to big economists they say Is only a Bubble my thought Is no bitcoin Is revolution of economy even doesnt have a background like gold the value Is power of the people what do you think?

What i have observed that economists are good with the fiat and paper money, they don't have any well awareness of bitcoin and cryptocurrencies. And one more thing mostly economists are linked with banks and government that's why they don't want to convey positive aspects of bitcoin and cryptos.

I do not think that they have any solid reason for that, they are just giving their own view about that, but it is not necessary, because bitcoin popularity and the increasing demand of bitcoin is a good proof which shows that bitcoin is not a bubble but it is trading in its original price. I think bitcoin still have more potential to increase its price.

[Lagduf]

Food for thought.

Amazon's stock price has jumped from $18 per share to nearly $1,000 per share.


Warren Buffett's berkshire hathaway stock has gone from $290 to being worth $284,570.


Here we have examples of tremendous growth being sustainable in the financial world.

I think that the area where economists have trouble is, they don't make an effort to differentiate between bitcoin's growth and the growth of stocks like amazon and berkshire hathaway.

There aren't many economists who have real world experience trading or applying economics principles in a way that is reliable or consistent.

Well I don't surprised that the economists are actually judging bitcoin just to make it looks bad, I've seen so many stocks increasing its price rapidly just as well as you mentioned above.
The difference is that, maybe, the stocks have real company whereas bitcoin is just a digital cryptocurrency which price pure affected by the buyers and sellers