Why economists say Bitcoin a bubble

[Capt00]

Actually not all economist are believing in crypto. Maybe that economist is against bitcoin and he/she tell something about bitcoin that it won't really happen in real life. As bitcoin is already making a great history in the blockchain, I don't think that it would lost its value in the market.

[Sled]

The economists say bitcoin is a bubble because they cannot believe that the price of bitcoin is growing so fast and it is unbelievable for them to gain a stock like bitcoin for a lot of percentage in just a year. In my opinion, we should not listen to them if they will say that bitcoin is a bubble because we all know that it is not true and we all know that bitcoin is a great investment.

[krishnapramod]

Free market economists don't have any issue with Bitcoin, buy yeah some other economists are sceptical about Bitcoin and you really can't blame them. We haven't seen something like Bitcoin before, but taking its exponential growth into consideration and applying well-established empirical and theoretical studies, some economists conclude that Bitcoin is a bubble. At the same time some of them don't ignore the possibility that large-scale Bitcoin adoption would weaken the centralized financial system.

Nobel Prize winning economist Milton Friedman who extolled the virtues of a free market economic system and believed in complete economic freedom predicted something exactly similar to Bitcoin about 18 years ago.

I think that the internet is going to be one of the major forces for reducing the role of government.

The one thing that’s missing, but that will soon be developed, is a reliable e-cash, a method whereby on the internet you can transfer funds from A to B, without A knowing B or B knowing A.

When Bitcoin is finally here, some economists do really have a hard time grasping it.

https://www.coindesk.com/economist-milton-friedman-predicted-bitcoin/

[nomad1109]

Free market economists don't have any issue with Bitcoin, buy yeah some other economists are sceptical about Bitcoin and you really can't blame them. We haven't seen something like Bitcoin before, but taking its exponential growth into consideration and applying well-established empirical and theoretical studies, some economists conclude that Bitcoin is a bubble. At the same time some of them don't ignore the possibility that large-scale Bitcoin adoption would weaken the centralized financial system.

Nobel Prize winning economist Milton Friedman who extolled the virtues of a free market economic system and believed in complete economic freedom predicted something exactly similar to Bitcoin about 18 years ago.

I think that the internet is going to be one of the major forces for reducing the role of government.

The one thing that’s missing, but that will soon be developed, is a reliable e-cash, a method whereby on the internet you can transfer funds from A to B, without A knowing B or B knowing A.

When Bitcoin is finally here, some economists do really have a hard time grasping it.

https://www.coindesk.com/economist-milton-friedman-predicted-bitcoin/

Good input. I didn't know Milton had said this, but he's a clever man, so I'm not exactly shocked either. However, Bitcoin might only be the start of the revolution. The transaction costs are so high that it isn't suitable as a means of payment. Therefore I think there's still a real chance that Bitcoin is in a bubble. Other digital currencies (like the upcoming Universa) might be better suited as a "reliable e-cash".

[reliable]

Actually not all economist are believing in crypto. Maybe that economist is against bitcoin and he/she tell something about bitcoin that it won't really happen in real life. As bitcoin is already making a great history in the blockchain, I don't think that it would lost its value in the market.

One of the reason why people or govt does believe that it is bubble because you do not get anything in physical form. Everything is virtual. As its a virtual any day it can get wiped out and your hard earned money if invested will be gone away due to which they feel the fear and say it a bubble.

[Sahyadri]

The main reason of economist calling Bitcoin a bubble is to compare that with some stocks or shares which had similar growth pattern as Bitcoin. A tremendous increase in price without any backing value means that growth is hollow and highly speculative which has the maximum probability of ending up in tears. But what I feel is that they forget to understand that bitcoin is not stock and is providing a different type of financial system. The growth can't be compared with any existing system.

[jack05]

Maybe many point to it but no it is not in bubble. People saying different things but they do not know true. Bitcoin market have long way to find yourself in bubble

[Gozie51]

The bubble means something that is like a magic in economics. Something that can not be tasted nor handled or felt. It could be termed as such because of the nature of bitcoin.

The economists seem to find it difficult how it is called money and so they refer to it as a bubble but we all know that we are getting financial benefit from it anyway.

[muhammad-adnanzain]

Mybe because bitcoin only sparate data not have a phisik form and more like an uphoria when the show is over than bitcoin blow like bubble.

[AVAMONEY]

Free market economists don't have any issue with Bitcoin, buy yeah some other economists are sceptical about Bitcoin and you really can't blame them. We haven't seen something like Bitcoin before, but taking its exponential growth into consideration and applying well-established empirical and theoretical studies, some economists conclude that Bitcoin is a bubble. At the same time some of them don't ignore the possibility that large-scale Bitcoin adoption would weaken the centralized financial system.

Nobel Prize winning economist Milton Friedman who extolled the virtues of a free market economic system and believed in complete economic freedom predicted something exactly similar to Bitcoin about 18 years ago.

I think that the internet is going to be one of the major forces for reducing the role of government.

The one thing that’s missing, but that will soon be developed, is a reliable e-cash, a method whereby on the internet you can transfer funds from A to B, without A knowing B or B knowing A.

When Bitcoin is finally here, some economists do really have a hard time grasping it.

https://www.coindesk.com/economist-milton-friedman-predicted-bitcoin/

good comparison,
it could be that the worries that will be faced by many countries with the freedom of saving people in saving the money without asking to think of pieces of interest and others as his

[killerfrost]

Bitcoin can be a bubble, it can expand like a Bitcoin value, with no stops, and when its capacity is overloaded, it will explode, like a bubble. If we do not provide a broader market or new quantity then this is likely to happen

[BTCMILLIONAIRE]

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?

Most Economists are straight up idiots. They've memorized volumes of books, but are incapable of observing and understanding reality. They also grossly oversimplify everything and then pretend that they are doing "rigorous quantitative research" - which is bullshit. I had to laugh real hard when I saw what a "Master of Science" in Economics means (the lectures are a joke).

[deisik]

The main reason of economist calling Bitcoin a bubble is to compare that with some stocks or shares which had similar growth pattern as Bitcoin. A tremendous increase in price without any backing value means that growth is hollow and highly speculative which has the maximum probability of ending up in tears. But what I feel is that they forget to understand that bitcoin is not stock and is providing a different type of financial system. The growth can't be compared with any existing system.

I don't think these economists are wrong

Indeed, Bitcoin is not like your stocks but if we compare it with the dotcom bubble and stocks of the companies selling air back then, which got heavily inflated, we will see a lot of similarities. And it is this lack of backing which is what similar between Bitcoin and the dotcom bubble stocks, even if Bitcoin, internally, is a "different type of financial system". In fact, it offers absolutely the same that those stocks offered, i.e. speculative growth. This is what's common between Bitcoin and the stocks in question, and this is what gives the former value today and gave value to the latter in the past despite them being different types of assets. In short, it is the same speculative growth under whatever name

[BTCMILLIONAIRE]

The main reason of economist calling Bitcoin a bubble is to compare that with some stocks or shares which had similar growth pattern as Bitcoin. A tremendous increase in price without any backing value means that growth is hollow and highly speculative which has the maximum probability of ending up in tears. But what I feel is that they forget to understand that bitcoin is not stock and is providing a different type of financial system. The growth can't be compared with any existing system.

I don't think these economists are wrong

Indeed, Bitcoin is not like your stocks but if we compare it with the dotcom bubble and stocks of the companies selling air back then, which got heavily inflated, we will see a lot of similarities. And it is this lack of backing which is what similar between Bitcoin and the dotcom bubble stocks, even if Bitcoin, internally, is a "different type of financial system". In fact, it offers absolutely the same that those stocks offered, i.e. speculative growth. This is what's common between Bitcoin and the stocks in question, and this is what gives the former value today and gave value to the latter in the past despite them being different types of assets. In short, it is the same speculative growth under whatever name

Those similarities are between the dot com bubble and ICOs though, rather than Bitcoin itself. For as long as Bitcoin remains the entry into the crypto market it is bound to keep increasing in price. This won't really change until Bitcoin becomes unbearably weak compared to a popular and much more efficient altcoin. And that altcoin would have to be one of the default denominators for altcoin exchanges as well.

[BTCMILLIONAIRE]

Almost every economist works for the system and knows that bitcoin or decentralized crypto currencies are dangerous for fiat money and this is why they have to bad mouth it in the hope that less people will use it and that the fiat money system will win this war, so they can continue to get paid by fiat for doing almost nothing!

Economists don't really work "for" the system. They're just stuck in it and can't imagine the world without it, because that's the only thing they're getting force fed throughout their entire training and career.

[taiwww]

When economist calls any currency as a bubble, they means that the currency is overpriced or oversubscribed. But this rule is not applicable to bitcoin as its a peer to peer currency protected by blockchain.
Currency Bubbles are made by group of individuals with bad motive.This is not possible with bitcoins.
Most of the currencies of the world are centralised one they get manipulated by the governments.
Bitcoin is a decentralised cryptocurrency, one cannot control or manipulate it by any way.
This autonomous status making bitcoin more and popular day by day.
Which has created fiat currency using lobby in deep fear and they started making bad publicity about bitcoin.
Nothing else.

[SirVeillance]

analog economists are missing the toolset to describe the virtual happenings right now.

[monomix]

the more people get involved in bitcoin, the stronger it becomes and gets farer from a bubble. the books those economists studied said that there should be an asset behind money... real economy, managing body, supply balancing demand. btw how can anyone economist say bitcoin is overvalued? against what?

[Oilacris]

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?

Its not new anymore in my ears on where those economist would always target bitcoin and saying up things like this that it is a bubble.Most of them would really say such thing because bitcoin doesnt rely on something and its not being backed by something which when they saw up the price do rise up a lot they do already consider it as a bubble without even thinking that such price increase isnt being built by hype but just a pure support of the community.

[BTCMILLIONAIRE]

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?

Its not new anymore in my ears on where those economist would always target bitcoin and saying up things like this that it is a bubble.Most of them would really say such thing because bitcoin doesnt rely on something and its not being backed by something which when they saw up the price do rise up a lot they do already consider it as a bubble without even thinking that such price increase isnt being built by hype but just a pure support of the community.

Fiat is backed by nothing as well, so those arguments don't hold at all, so their arguments just further invalidate their own claims.