Why economists say Bitcoin a bubble

[oegarod]

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.

Indeed, it's not overbought because, people investing their own funds to buy this cryptocurrency and live market which is having live traders proves that the price trully right and people paying this amount for cryptocurencies

Agreed, economists mention the liquidity without any proper backing similar to the gold or other stocks to be an major factor to consider it an bubble. Though it has been under review for etf and upon other live trades similar to stocks, there are groups that were not in  state to accept it.

[Kittykattie]

By my own definition of a bubble, the one that will pop out when it expands, and if it is applied to bitcoin, it surely doesn't fit at all, would it really be possible that it will just pop because of the price that is expanding? i think not, and i purely believe to what bitcoin is capable of.

[nl247]

By my own definition of a bubble, the one that will pop out when it expands, and if it is applied to bitcoin, it surely doesn't fit at all, would it really be possible that it will just pop because of the price that is expanding? i think not, and i purely believe to what bitcoin is capable of.

Bitcoin is capable of a lot of things and the value it creates which so many people believe in is what makes it what it is today. As long as bitcoin remains a tool for transaction, which makes it extremely useful after all the slavery our governments have imposed on us all these while, then BTC will always stay relevant due to the increase in demand and that to me is not a bubble, which totally explains why it is trading in places like Zimbabwe for a much more value than the normal market.

[spiacentee]

it suppose to be about the economical size of the cryptocurrencies. maybe it is not big enough when we compare with the economy of the conventional currencies, but we need to consider that, about 10 years ago there was not such a cryptoTHINGS. and now it is getting bigger and bigger.

[BTCMILLIONAIRE]

By my own definition of a bubble, the one that will pop out when it expands, and if it is applied to bitcoin, it surely doesn't fit at all, would it really be possible that it will just pop because of the price that is expanding? i think not, and i purely believe to what bitcoin is capable of.

Bitcoin is capable of a lot of things and the value it creates which so many people believe in is what makes it what it is today. As long as bitcoin remains a tool for transaction, which makes it extremely useful after all the slavery our governments have imposed on us all these while, then BTC will always stay relevant due to the increase in demand and that to me is not a bubble, which totally explains why it is trading in places like Zimbabwe for a much more value than the normal market.

Zimbabwe is a very special case in this whole scenario. They are basically buying with leverage due to their lack of liquidity and the henceforth increased prices, which is actually quite dangerous for them.

[speem28]

These economists people never learned! They always feel like they know everything that will potentially happen to bitcoin because they have a great knowledge of those fields but in actuality, they really don't! I'm pretty sure that they had been saying "bitcoin is just a bubble" ever since its price started increasing little by little from way-way back. This idea made the impression that there would always be a dump that will happen to bitcoin's price so, in result, people tend to wait for huge dumps to buy bitcoin at that lower price but in the end, bitcoin's price just lowered a little then will suddenly increase higher than the highest price bitcoin reached before it dumped. People will now say that buying bitcoin after the pump is risky and they will wait again for the next dump to happen. This is the cycle of investment and of bitcoin. So only those risk takers are the only ones who enjoyed buying bitcoin at those times.

[KSCTeam]

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 economists we differently look at everything by the wife book and the knowledge they learn through the school.

[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?

The economists we differently look at everything by the wife book and the knowledge they learn through the school.

What is a "wife book"?

[elegion]

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'm surprised that they're even mentioning Gold all. Many of these economists come from an entirely different school of economics, which is called Keynesian economics which is based on the total spending in the economy and its effects on output and inflation which was created by John Maynard Keynes. When they're talking About gold and Bitcoin they're referring to Austrian Economics which is something that they don't like, but it makes the most sense. To put it simply Keynesian's believe that money in the form of paper can be printed indefinitely (like it is today) out of thin air and that market conditions can be artificially created, in my view it is a completely irresponsible way of managing an economy, and because of this irresponsibility the world economy is now due for a correction, a correction that may very well cost us all our lives. 

Always remember, Bitcoin gains its value through adoption, it’s utility, and its use. This basic adoption creates a network effect which is based on methodological individualism or the achievement of economic order through the motivations and actions of individuals which is the main tenant of Austrian Economics. This style of Economics was created during the late 19th and early 20th century by a number of economic luminaries, such as Eugen Bohm, Von Bawerk, Friedrich von Wieser, and  Ludwig von Mises. Today Austrian Economics is regarded as a form of economics that is taught at the Mises Institute. It is a form of economics that is slowly taking shape through Bitcoin and other forms of Crypto assets.

[deisik]

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'm surprised that they're even mentioning Gold all. Many of these economists come from an entirely different school of economics, which is called Keynesian economics which is based on the total spending in the economy and its effects on output and inflation which was created by John Maynard Keynes. When they're talking About gold and Bitcoin they're referring to Austrian Economics which is something that they don't like, but it makes the most sense. To put it simply Keynesian's believe that money in the form of paper can be printed indefinitely (like it is today) out of thin air and that market conditions can be artificially created, in my view it is a completely irresponsible way of managing an economy, and because of this irresponsibility the world economy is now due for a correction, a correction that may very well cost us all our lives

I guess this is not what Keynesians actually say

In fact, all major schools of economics (well, at least those that I'm familiar with, and yes, I'm familiar the Austrian school of economic though) say essentially the same thing, i.e. that the amount of money in circulation should match the size of the economy. Whether you can print out your way from the economic recession is another question, and opinions vary. But personally, I'm inclined to think that in certain situations printing money can in fact help the economy. Obviously, it has it limits, but, on the other hand, everything else has its limits as well beyond which the results may be counterproductive. This is called optimal value

[tranquanghuy]

Bitcoin have huge market whose can not be in bubble

[eminemcookie]

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 main reason I consider bitcoin can be a bubble as do many others is because of the large price increase and the way that bitcoin seems to be able to shrug off negative news and people think that it cannot go down in value. Now I'm not saying it's a bubble but those are telltale signs of one

[family934]

Financial expert's thinking depend on fiat rather bitcoin is distinctive things and it's not from their reality. Obviously they can impart their insight about bitcoin actually.

For what I can state that bitcoin is one of a kind and it will keep flabbergast individuals occasionally.

[haileysantos95]

Thats what an "economist" and "expert" say about bitcoin and they all do, they are just afraid to admit that bitcoin has been revolutionizing how the system of money works.
These kinds of people are still dependent on fiat because they are scared to embrace the new technology.

[Naoko]

Well, why not? I believe that there is some truth in their words...it can disappear as suddenly as it appeared...until there are simply no signs for this, but it isn't known what will happen in the future

[HiringYou]

Economists say Bitcoin a Bubble because of the sudden boost in it's price.They consider this rise as temporary and say that soon this bubble will burst that means soon their will be a huge drop in the price.But I think that people are now believing in it which has actually increased the demand which has further  increased it's price so according to me this rise is genuine and it is not a bubble.

[Feuerbach]

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 say so because they consider the demand for bitcoin artificially made, not natural

[naidray]

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.

Indeed, it's not overbought because, people investing their own funds to buy this cryptocurrency and live market which is having live traders proves that the price trully right and people paying this amount for cryptocurencies

Agreed, economists mention the liquidity without any proper backing similar to the gold or other stocks to be an major factor to consider it an bubble. Though it has been under review for etf and upon other live trades similar to stocks, there are groups that were not in  state to accept it.

Those groups obviously because of their selfish and greedy nature of the way they have always done things will not want to accept it but at the end, they will end up having no choice at all.

Bitcoin could have been a bubble if it does not in any way answer some questions or resolve some issues people are having when it comes to transaction for a long time now, and as long as there is going to keep being a demand for its usefulness, then any economist that calls it a bubble does not just have any sense at all.

[trecore4]

Yeah truly said. I don’t either believe in the economist presumption because they do not make the prediction for the market over the period of years but just for the short period. I mean they will say this will happen that will happen in next two years. But when two years has been passed the reality is always different because we do not know what developments may occur in between these tow years, there might be major incidences which will change the course of every presumption and different things will happen.


They always say that bitcoin is bubble but its not and it will never be. I mean come on it is ridiculous to think about it in that way after seeing its giant leap from the few dollar to all upto 8000 USD today. Is that a bubble, do you still think that its bubble? Oh come on they must be dreaming and do not know the reality. What I believe in bitcoin is, its a virtual reality and it can upgrade our ways of earning instantly. Cheers to that one by the way. :-)

[winspiral]

Economists are right,very right.

What is a bubble in my mind?
when a share price goes up...and up and up and the dividends goes not up up up...it is considerated as a bubble because it is speculative.

About bitcoin,we know that we have "zero dividend"...so it is only speculative.

In both situations the market can change to take profit by selling...so the price will fall because each bitcoin holder will take most profit or at least limit lost.

By shares the crash is limited generaly by the dividends...But by the bitcoin...nothing will limit the crash...
Crash can only be limited by an new speculation.