Why economists say Bitcoin a bubble

[Siren]

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?

A bubble is a bubble when something is overbought, it is that simple. Is bitcoin overbought right now?
With a supply of 21 million (not considering lost BTCs), with all the brightest minds working on it, with the strongest network, and with a marketcap that is still very small compared to what a global 24/7 market like bitcoin is could deliver.... then no, I don't think we are anywhere near a bubble. Corrections will come and go, that doesn't mean we were in a bubble.

Bitcoin has a fixed amount in existence and i don't think that once it is all mined and done, there will be any other way where new bitcoins will come into existence. These economists actually don't know what they are talking about at all.

Most economists are really poorly versed in the crypto currency. Their thinking is limited to the Fiat and the laws of the economy, which are built on the fiat. Therefore their mind is not ready to accept a new era in the world of finance

Yeah, the economics law is not applicable to bitcoin and crypto's. The price is based on different factors like speculation, demands and others. Those economist doesn't seem to understand all of this and how the market moves. They haven't seen anything like this before. This is a new technology, new revolution. We may see that the price dip today, but in less than 24 hours the prices jumped $1000, how can they explain that? What law is applicable then?

[1714754936]

1714754936

[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?

A bubble is a bubble when something is overbought, it is that simple. Is bitcoin overbought right now?
With a supply of 21 million (not considering lost BTCs), with all the brightest minds working on it, with the strongest network, and with a marketcap that is still very small compared to what a global 24/7 market like bitcoin is could deliver.... then no, I don't think we are anywhere near a bubble. Corrections will come and go, that doesn't mean we were in a bubble.

Bitcoin has a fixed amount in existence and i don't think that once it is all mined and done, there will be any other way where new bitcoins will come into existence. These economists actually don't know what they are talking about at all.

Most economists are really poorly versed in the crypto currency. Their thinking is limited to the Fiat and the laws of the economy, which are built on the fiat. Therefore their mind is not ready to accept a new era in the world of finance

Yeah, the economics law is not applicable to bitcoin and crypto's. The price is based on different factors like speculation, demands and others. Those economist doesn't seem to understand all of this and how the market moves. They haven't seen anything like this before. This is a new technology, new revolution. We may see that the price dip today, but in less than 24 hours the prices jumped $1000, how can they explain that? What law is applicable then?

The economics of the traditional world and the crypto world are the same. Most Economists just simply don't understand either of these, because they are only "book smart" and don't understand how the books were created, thus they can't draw conclusions on problems that vary even in the slightest from what they read during their "training".

[Vritesh]

Just because their is a huge rise in it's price in a short period of time , economists think that this rise not geniuine and consider it as bubble.But i dont think Bitcoin is a bubble. People are getting to know about it's calliber and that's why the demand is increasing which is increasing the price .So the price is geniuine .

[cluit]

Maybe somebody says that  bitcoin is a bubble because it can be vanish it can be lost and it will not stay forever. Even the property that we have now, the money, the job or the oppurtunity that we have now it can be lost. That's why some of the economist say that bitcoin is a bubble but for me if bitcoin stay it will help a lot of people who wants to have a better live, they can give chances to other.So as long as bitcoin stays use the amount that we get or save it and spend it on the things that we can use in the near future for our family.

I think those are not economists who said this foolish verse, because I think these economists do not see the people who are investing in bitcoin in such a large capacity and the market cap of bitcoin is increasing day by day. Bitcoin is the future currency of the world how can it be vanished in the air? It is not possible for anybody in the world to erase bitcoin from the page of the future.

[BTCMILLIONAIRE]

Maybe somebody says that  bitcoin is a bubble because it can be vanish it can be lost and it will not stay forever. Even the property that we have now, the money, the job or the oppurtunity that we have now it can be lost. That's why some of the economist say that bitcoin is a bubble but for me if bitcoin stay it will help a lot of people who wants to have a better live, they can give chances to other.So as long as bitcoin stays use the amount that we get or save it and spend it on the things that we can use in the near future for our family.

I think those are not economists who said this foolish verse, because I think these economists do not see the people who are investing in bitcoin in such a large capacity and the market cap of bitcoin is increasing day by day. Bitcoin is the future currency of the world how can it be vanished in the air? It is not possible for anybody in the world to erase bitcoin from the page of the future.

If a better coin comes along, Bitcoin can vanish very quickly. But it doesn't seem like this will happen anytime soon.

[fanbeila]

Mostly the so called economists are backed by financial companies or just lobbied by them.They just blindly term bitcoin as a bubble or as a fraud just like jamie dimon.Some even term it as a tulipomania.

Either they just want to show it down or just create uncertainty among bitcoin investors.

A bubble is a thing where people invest blindly in a stock or asset much more than it deserves.Here,we actually don't know what value bitcoin deserves.Its the trust kept by people over it on seeing its performance that has made its price to rise.

Its demand is steadily increasing and we could not find any reason for people to suddenly lose their interest in it and sell at once.

[quedex]

The economists claim that Bitcoin is a bubble basically for one reason: the liquidity premium of (or, in other words, transactional demand for) bitcoin is huge relative to its intrinsic value (IOW, the value you get when the music stops).
Since bitcoin is actually the first asset to fully conform to quantity theory of money, most economists are perplexed.

[deisik]

The economists claim that Bitcoin is a bubble basically for one reason: the liquidity premium of (or, in other words, transactional demand for) bitcoin is huge relative to its intrinsic value (IOW, the value you get when the music stops).
Since bitcoin is actually the first asset to fully conform to quantity theory of money, most economists are perplexed.

Could you expand more on this?

What do you mean by liquidity premium (transactional demand)? If you mean transactional utility, then it is pretty slim in Bitcoin since Bitcoin is not used as money. It is a vehicle for speculation (the proverbial "buy low, sell high") but once you inject your bitcoins (or other cryptos, for that matter) into your exchange account, they mostly stay there, i.e. you don't transact with Bitcoin as much as you use it for speculation. So it is really minute in comparison with demand for Bitcoin as a speculative asset. Also, I'm not quite sure what you mean by Bitcoin's intrinsic value. As far as I can say, there's none

[quedex]

The economists claim that Bitcoin is a bubble basically for one reason: the liquidity premium of (or, in other words, transactional demand for) bitcoin is huge relative to its intrinsic value (IOW, the value you get when the music stops).
Since bitcoin is actually the first asset to fully conform to quantity theory of money, most economists are perplexed.

Could you expand more on this?

What do you mean by liquidity premium (transactional demand)? If you mean transactional utility, then it is pretty slim in Bitcoin since Bitcoin is not used as money. It is a vehicle for speculation (the proverbial "buy low, sell high") but once you inject your bitcoins (or other cryptos, for that matter) into your exchange account, they mostly stay there, i.e. you don't transact with Bitcoin as much as you use it for speculation. So it is really minute in comparison with demand for Bitcoin as a speculative asset. Also, I'm not quite sure what you mean by Bitcoin's intrinsic value. As far as I can say, there's none

I agree that bitcoin does not have any important intrinsic value. By this I mean that it is not a security entitling the holder to anything and that its objective, market-independent properties are almost useless (cryptographic timestamping on [Suspicious link removed]es to my mind as one). Bitcoin's value comes almost solely from transactional demand for bitcoin and expectations of future transactional demand. It is not the same as demand as a payment service for coffee or t-shirts, but rather demand for a liquid asset, which is easily transferable globally and which is able to settle even large transactions swiftly, reliably and pseudonymously.

While it is true that speculation is the main driver of bitcoin volume, but those who believe bitcoin prices will rise can do so based only of future transactional demand (or are irrational but lucky). Every time one does the calculations like "imagine bitcoin will be the size of VISA" or "if 1% of global capital markets' funds were directed to crypto..." one is estimating the future liquidity of the asset. Anytime short term trader looks on the charts in the search of the technical patterns he tries to estimate money flows. And in fact speculation very positively influences bitcoin liquidity and the premium people will pay for such liquidity. So it is a positive feedback loop.

Sure, bitcoin is not money, since it is not a unit of account anywhere, but it is a (small, nascent) medium of exchange. And since economists are accustomed to seeing large liquidity premia on monetary assets and not on (virtual) commodities, they shout "bubble"!

[cr_liev]

Nobody can say for sure, for now you should have a war chest and invest using common sense. At least for this transition period

[feya]

Nobody can say for sure, for now you should have a war chest and invest using common sense. At least for this transition period

Some crypto currencies are very overrated today. Their real value we learn with time. Perhaps this bubble is also undervalued

[LoudA__]

Maybe somebody says that  bitcoin is a bubble because it can be vanish it can be lost and it will not stay forever. Even the property that we have now, the money, the job or the oppurtunity that we have now it can be lost. That's why some of the economist say that bitcoin is a bubble but for me if bitcoin stay it will help a lot of people who wants to have a better live, they can give chances to other.So as long as bitcoin stays use the amount that we get or save it and spend it on the things that we can use in the near future for our family.

I think those are not economists who said this foolish verse, because I think these economists do not see the people who are investing in bitcoin in such a large capacity and the market cap of bitcoin is increasing day by day. Bitcoin is the future currency of the world how can it be vanished in the air? It is not possible for anybody in the world to erase bitcoin from the page of the future.

If a better coin comes along, Bitcoin can vanish very quickly. But it doesn't seem like this will happen anytime soon.

There is a lot of better digital or alternative currency than bitcoin, still bitcoin is popular and pricey and still sitting  a top of all of it. It just means that bitcoin will never leave the top and will never go down, bitcoin is not a bubble because if it is, it must popped up a long time ago.

[zenrol28]

we dont know whats on their minds. maybe they're just testing how it will resist like what Dimon did. maybe they're just discouraging people so they can buy some time to hold more. possibilities are endless.

[Fatanut]

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?

The real question here is why didn't you ask them when they told you that. Maybe contact them and ask them. We might have things to say in here but they probably have a deeper explanation since they are economists. I think that the reason they told you that is because bitcoin is a speculative asset. At some point, the price is doomed to go down significantly. This is totally normal to all markets that are based on supply and demand law (which is basically all markets) so their argument cannot be easily proven wrong.

You will see that once bitcoin experienced a major dip, they will come knocking to your door saying, "I told you so." even when bitcoin is only down momentarily.

[deisik]

The economists claim that Bitcoin is a bubble basically for one reason: the liquidity premium of (or, in other words, transactional demand for) bitcoin is huge relative to its intrinsic value (IOW, the value you get when the music stops).
Since bitcoin is actually the first asset to fully conform to quantity theory of money, most economists are perplexed.

Could you expand more on this?

What do you mean by liquidity premium (transactional demand)? If you mean transactional utility, then it is pretty slim in Bitcoin since Bitcoin is not used as money. It is a vehicle for speculation (the proverbial "buy low, sell high") but once you inject your bitcoins (or other cryptos, for that matter) into your exchange account, they mostly stay there, i.e. you don't transact with Bitcoin as much as you use it for speculation. So it is really minute in comparison with demand for Bitcoin as a speculative asset. Also, I'm not quite sure what you mean by Bitcoin's intrinsic value. As far as I can say, there's none

I agree that bitcoin does not have any important intrinsic value. By this I mean that it is not a security entitling the holder to anything and that its objective, market-independent properties are almost useless (cryptographic timestamping on [Suspicious link removed]es to my mind as one). Bitcoin's value comes almost solely from transactional demand for bitcoin and expectations of future transactional demand. It is not the same as demand as a payment service for coffee or t-shirts, but rather demand for a liquid asset, which is easily transferable globally and which is able to settle even large transactions swiftly, reliably and pseudonymously

I seem to understand what you mean

Basically, we mean essentially the same thing. I talk about transactional utility which is a basis or source for what you call transactional demand, or rather expectations based on future transactional demand. If I got your point correctly, you mean that people (some people) buy Bitcoin because they hope it will be a future medium of exchange when it gets universally accepted worldwide as opposed to folks buying it exclusively for the purposes of speculation. That said, I don't think this demand is great, I'd rather say it is small, if not to say tiny

[cryptoalfs76]

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 thinks's economist say bitcoin a bubble because of the worldwide ledger  process in cryptocurrency world,but the reality its continue to grow  and decentralized in the blockchain market.economist have there own analization in the economy happen, but in terms of cryptocurrency its different.

[lordquanta]

we dont know whats on their minds. maybe they're just testing how it will resist like what Dimon did. maybe they're just discouraging people so they can buy some time to hold more. possibilities are endless.

Some of the points raised by the economists are fair and straightforward. One big objection about the overpriced, many economists are thinking that if bitcoin is put in actual use then its real price will be determined. And that price will be very less than what it is now.
At the same time we have seen people time Dimon who used their position to manipulate the prices and when prices were low they swoop in. However with this kind of approach, you succeed only once. Next time Dimon will not be taken seriously. Other people who are negating bitcoins is purely based on prejudice and lack of information. And some being simply bank-media shill.

[Kevin77]

Nobody can say for sure, for now you should have a war chest and invest using common sense. At least for this transition period

Some of these economists you see these days are just fools, and you should never listen to those foolish ones, I don’t even know how they got through to become economists. Yes, it looks like a bubble, but some of them uses the bubble word as a way to incite people to believe that Bitcoin is scam and rubbish.

[EdenHazard]

we dont know whats on their minds. maybe they're just testing how it will resist like what Dimon did. maybe they're just discouraging people so they can buy some time to hold more. possibilities are endless.

Some of the points raised by the economists are fair and straightforward. One big objection about the overpriced, many economists are thinking that if bitcoin is put in actual use then its real price will be determined. And that price will be very less than what it is now.
At the same time we have seen people time Dimon who used their position to manipulate the prices and when prices were low they swoop in. However with this kind of approach, you succeed only once. Next time Dimon will not be taken seriously. Other people who are negating bitcoins is purely based on prejudice and lack of information. And some being simply bank-media shill.

yes they are a realist too , they don't want something that looks like too good to be true , with the current price that nobody else really know what causing all of it , i mean the real factor that could make them feel not insecure.

as of now the volatile happened so massive showing a bearish but it keep growing and for them it is doesn't makes sense.

[BTCMILLIONAIRE]

Maybe somebody says that  bitcoin is a bubble because it can be vanish it can be lost and it will not stay forever. Even the property that we have now, the money, the job or the oppurtunity that we have now it can be lost. That's why some of the economist say that bitcoin is a bubble but for me if bitcoin stay it will help a lot of people who wants to have a better live, they can give chances to other.So as long as bitcoin stays use the amount that we get or save it and spend it on the things that we can use in the near future for our family.

I think those are not economists who said this foolish verse, because I think these economists do not see the people who are investing in bitcoin in such a large capacity and the market cap of bitcoin is increasing day by day. Bitcoin is the future currency of the world how can it be vanished in the air? It is not possible for anybody in the world to erase bitcoin from the page of the future.

If a better coin comes along, Bitcoin can vanish very quickly. But it doesn't seem like this will happen anytime soon.

There is a lot of better digital or alternative currency than bitcoin, still bitcoin is popular and pricey and still sitting  a top of all of it. It just means that bitcoin will never leave the top and will never go down, bitcoin is not a bubble because if it is, it must popped up a long time ago.

Bitcoin isn't at the top just because of its algorithm. It's also in a unique spot that makes it a requirement for those who wish to invest in altcoins.