Is Bitcoin now the biggest bubble of all time?

[jaysabi]

The Dutch Tulip Mania is one of the most famous bubbles of all time, for the scale of the bubble, the scale of the collapse, and probably including the seemingly obvious nature of the bubble considering the extremely limited functional utility of tulips. Bitcoin has now surpassed the multiples of value appreciation at the height of the Tulip Bubble (and by a wide margin). While this itself is not proof that Bitcoin is a bubble or that a collapse is imminent, it's worth considering if there's a lot more risk buying at this price (currently bouncing around $17,000) than anyone on these boards seems willing or able to recognize.




Thoughts?

[fiulpro]

I think bitcoins are not entirely like tulip..since...as we can see from the graph... Tulip never saw that many up downs.. it..was increasing got static then was increasing again and suddenly dropped down...
Where are with bitcoins... We have seen so many ups and downs that I feel has made bitcoins stronger..as people's trust is now increased since they know that no matter what happens the value of bitcoins will sore high so...they usually invest at the time of down and..when the market value increase...they encash...it keeps everything balanced is what I feel..and tulip and bitcoins were entirely different phenomena and..we are now more eligible to handle if anything bad happens... To the market of cryptocurrency.

[Hydrogen]

Part of me feels compelled to point out growth charts depicting automobiles replacing horse drawn carriages resembled a bubble. The growth of personal computers and operating system manufacturers like microsoft resembled a bubble, as they replaced more traditional paper trail based office systems.

One valid question may be whether crypto currencies represent the next evolution of banking and electronic payment systems. If a case could be made for bitcoin eventually making banking systems and electronic fiat obsolete. What we could be seeing is what happens when someone succeeds in inventing a better mousetrap. In that case, bitcoin wouldn't be a bubble, it might better be described as the future? If that makes sense.

It could come down to how much of a legitimate need there is for technologies like bitcoin. That's something that isn't easy to measure as far as I know. If there's a real and dire need for bitcoin and crypto currencies which will sustain their growth, it may not be a bubble at all.

Also keep in mind the chart which depicts bitcoin's growth could be misleading. Bitcoin reached an all time high of greater than $1,000 around 2014. A case could be made for btc trading at nearer to 10x its ATH, which could be sustainable, rather than the 40 to 60 x some cite back to around 16 months ago.

[wilberthh]

I believe so too. This fluctuative price of bitcoin is a problem, so I think it's possible for bitcoin to crash in any time. I totally believe that it's very risky to buy bitcoin at this rate. That's why I stick with altcoins now

[davis196]

You can`t compare bitcoin with bubbles that are already bursted.
What if the bitcoin price becomes more stable and the bitcoin "bubble" never bursts,which means that bitcoin actually  isn`t a bubble?This is just a suggestion,i still think that it is a bubble,but i`m not 100% sure.
Bitcoin will be something like IBM for the IT industry back in the 80s.A giant that will be replaced by other big corporations.I want btc to survive ,but altcoins like ethereum and monero will be the future of the crypto world.

[Charisse1229]

Yeah. Bitcoin is now the biggest bubble of all time becuase its value is unpridectable nobody knows if bitcoin is what exactly amount reach. Bitcoin is bounceback and after that he can fly to the moon. Bitcoin is the biggest and strongest coins of all time.

[sukamasoto]

As I can see that bitcoin is revolutionary currency that ever exist because nobody expect bitcoin able reach this far
And yes, 2017 is the greatest year for bitcoin especially when we are looking for it's value and as soon as it happen, all people become aware for this technology !

[DaMut]

Yeah. Bitcoin is now the biggest bubble of all time becuase its value is unpridectable nobody knows if bitcoin is what exactly amount reach. Bitcoin is bounceback and after that he can fly to the moon. Bitcoin is the biggest and strongest coins of all time.

do you even understang what are you talking about ?
you said Bitcoin is a biggest bubble of all the time because its price or value is unpredictable and it can fly to the moon.
but at the same time you were saying about the biggest and strongest coin of all the time ?
bubble mean something that does not have a good foundation behind them.
which mean it's a weakest asset that can be manipulated totally by people,
people can push it to the sky and at the same time people can push it to the ground until it lose its value.
it's very clear at this moment Bitcoin is not part of the bubble and it has not yet to reach that point.
the reason behind this ridiculous pump due to demand that keep increasing from time to time,
the whales took that as a chance to maximize their profit.
no more than that.

[btcbonanza]

Your diagram regards this year to be the peak year for bitcoin but I doubt.
The craze of bitcoin is still among investors and it is about has crossed $20,000 in many countries. Same demand will continue next year too.
So there isn't a big risk buying bitcoin right now in my senses.

[HasHe]

I think bitcoin's price rise could not be compared with tulipomania since tulip bulbs has nothing to deliver except it remained as an attractive thing.But bitcoin has lots of features to deliver.At fist,it gained importance for its transactions in low fee.Then,people found their investment to be safe from both the governments and hackers.Last positive feature is its tremendous growth in price.

An assets price increase could be termed as a bubble when only it is over valued than its actual value.Here,we could not exactly value bitcoin.It deserves more price than what it is now.

Its price has mainly increased nowadays due to the entry of wall street companies in bitcoin market.So,there are various factors which back bitcoin from its price getting crashed.

[krishnapramod]

Yeah. Bitcoin is now the biggest bubble of all time becuase its value is unpridectable nobody knows if bitcoin is what exactly amount reach. Bitcoin is bounceback and after that he can fly to the moon. Bitcoin is the biggest and strongest coins of all time.

Price is unpredictable, not value, they aren't the same. And in terms of price, this exponential increase over a short period of time does make it look like Bitcoin is in a bubble. Bitcoin is not only scarce, but also has undeniable utility. It is believed that Bitcoin is the future of money. Currently around 0.01% of the world population uses Bitcoin so if we assume that the current price is determined on the basis of people willing to pay for the future value of Bitcoin, value-based pricing then from this perspective it might not be a bubble. Based on this we might be in the initial stages where people are getting to know about Bitcoin which would not only allow them to be part of the global financial economy, but would also make them financially independent.

Here's an interesting take on why Bitcoin's current price doesn't reflect its true value.

The value of Bitcoin has nothing to do with its exchange rate.

When Bitcoin was worth exactly zero dollars, it already essentially solved the previously unsolvable 30-year old computer science problem called the Byzantine General’s problem — how to reach agreement with other agents over an untrusted network of communication. That value proposition was there from day zero, even if the price of one Bitcoin was zero.

Just like how the value of your paper money is not in the paper itself but in the government or authority that issues this paper, the value of Bitcoin is not in the tokens used to exchange with each other, but in the network that allows this exchange to happen.

The price of Bitcoin is the least interesting thing about it. The value of Bitcoin is in its ability to do what it set out to do, and do it best.

Bitcoin is now the 6th most valuable circulating currency in the whole world, and it did this in about eight years, with roughly only about 0.01% of the world’s population owning or using it.

So, we could be watching one of the biggest financial bubbles in history unfold with this cryptocurrency mania. Yet on the other side of the coin, there is also the non-trivial possibility that we are witnessing something remarkable happening before our very eyes — the return of the separation of cash and state.

Will crypto markets crash in between? Most likely. In the same way the dotcom bubble burned over six trillion dollars back in 2000, Bitcoin and cryptocurrencies will probably go through the same cycles. Bubbles establish the true players in the market and eliminate all the ones who are there for a quick buck. What’s important is that the technology is real, and it is here to stay.

So what’s going to happen? Bitcoin’s upward trend becomes logical once you understand the many layers of the technology behind it. Add to that the thousands and thousands of people who, for their own financial self-interest, will work day and night and fight tooth and nail to keep the fire going, building the network, protecting the network, being the network, and you’ve got an unstoppable force or innovation and value pushing us towards the next evolution of money.

But to answer the question, no one can predict what is going to happen.

https://decentralize.today/dont-fall-for-the-hype-why-bitcoin-s-10-000-price-doesn-t-reflect-its-true-value-6b42a59fce0a

[Endikadija]

Yeah. Bitcoin is now the biggest bubble of all time becuase its value is unpridectable nobody knows if bitcoin is what exactly amount reach. Bitcoin is bounceback and after that he can fly to the moon. Bitcoin is the biggest and strongest coins of all time.

Price is unpredictable, not value, they aren't the same. And in terms of price, this exponential increase over a short period of time does make it look like Bitcoin is in a bubble. Bitcoin is not only scarce, but also has undeniable utility. It is believed that Bitcoin is the future of money. Currently around 0.01% of the world population uses Bitcoin so if we assume that the current price is determined on the basis of people willing to pay for the future value of Bitcoin, value-based pricing then from this perspective it might not be a bubble. Based on this we might be in the initial stages where people are getting to know about Bitcoin which would not only allow them to be part of the global financial economy, but would also make them financially independent.

Here's an interesting take on why Bitcoin's current price doesn't reflect its true value.

The value of Bitcoin has nothing to do with its exchange rate.

When Bitcoin was worth exactly zero dollars, it already essentially solved the previously unsolvable 30-year old computer science problem called the Byzantine General’s problem — how to reach agreement with other agents over an untrusted network of communication. That value proposition was there from day zero, even if the price of one Bitcoin was zero.

Just like how the value of your paper money is not in the paper itself but in the government or authority that issues this paper, the value of Bitcoin is not in the tokens used to exchange with each other, but in the network that allows this exchange to happen.

The price of Bitcoin is the least interesting thing about it. The value of Bitcoin is in its ability to do what it set out to do, and do it best.

Bitcoin is now the 6th most valuable circulating currency in the whole world, and it did this in about eight years, with roughly only about 0.01% of the world’s population owning or using it.

So, we could be watching one of the biggest financial bubbles in history unfold with this cryptocurrency mania. Yet on the other side of the coin, there is also the non-trivial possibility that we are witnessing something remarkable happening before our very eyes — the return of the separation of cash and state.

Will crypto markets crash in between? Most likely. In the same way the dotcom bubble burned over six trillion dollars back in 2000, Bitcoin and cryptocurrencies will probably go through the same cycles. Bubbles establish the true players in the market and eliminate all the ones who are there for a quick buck. What’s important is that the technology is real, and it is here to stay.

So what’s going to happen? Bitcoin’s upward trend becomes logical once you understand the many layers of the technology behind it. Add to that the thousands and thousands of people who, for their own financial self-interest, will work day and night and fight tooth and nail to keep the fire going, building the network, protecting the network, being the network, and you’ve got an unstoppable force or innovation and value pushing us towards the next evolution of money.

But to answer the question, no one can predict what is going to happen.

https://decentralize.today/dont-fall-for-the-hype-why-bitcoin-s-10-000-price-doesn-t-reflect-its-true-value-6b42a59fce0a

Bitcoin value depends on the market movement. That means if the price will be changing anytime due to the demand of the bitcoin market. Crypto doesn't have any actual value. To say about the bitcoin will have its actual value will become another senseless thing. If the fact we see the volatility of the bitcoin becomes a real evidence about it. The actual price can't be determined. that's why some expert said about the bitcoin price limit should be the sky itself.

[lvincent]

What if bitcoin is not a bubble i mean there's a lot of possibilities that might happen, although if it is a bubble well it will be the biggest bubble of all time so far but we don't need to compare those former bubble to bitcoin cause everyone is seeing it's potential and bitcoin is genuine so lets just hope that bitcoin is not a bubble.

[krishnapramod]

Bitcoin value depends on the market movement. That means if the price will be changing anytime due to the demand of the bitcoin market. Crypto doesn't have any actual value. To say about the bitcoin will have its actual value will become another senseless thing. If the fact we see the volatility of the bitcoin becomes a real evidence about it. The actual price can't be determined. that's why some expert said about the bitcoin price limit should be the sky itself.

They do have value. Why are people buying Bitcoin, simply because of market movements or because of underlying value proposition? Demand is there because of value. Scarcity, usefulness as a store of value and a permissionless medium of exchange. Value and price aren't the same, value is a determining factor for price. Bitcoin's perceived future value is what is driving the price, but yeah it is impossible to determine the actual price of Bitcoin. Like mentioned in the above article, the value proposition was there from day zero, even if the price of one Bitcoin was zero. So basically as the value/overall usefulness of Bitcoin increases, price would obviously increase. Yeah, sky would be the limit.

[buwaytress]

Comparing Bitcoin to tulips is worse than comparing oranges to apples. Almost all the other comparisons were just like Tulipmania, in terms of localisation, concentration in the hands of few, where demand was artificially created by centralized parties. But at this point, the bubble theory, in whatever form presented, no longer matters.

I'm completely with the understanding that price here isn't necessarily an indication of value. Its first value was already recognised from the emergence of the concept through the whitepaper, the rich history of discussion in this forum, and email correspondence with early devs, is proof enough. And If Bitcoin isn't a bubble (hard for me to imagine this scenario even as an advocate), then its features and utility have become more obvious, expressed through its price.

But even if Bitcoin is a bubble, then it has already burst, several times, and will just be replaced by following bubbles, perhaps each bursting with more spectacular fashion as its size increases. In this case, we have nothing different from the speculative environment of trading.

We'll mostly still be here in event of any bursts, price doesn't change the value already recognised, doesn't stop the developments that continue to take place, doesn't stop the community that was here well before price became talking points.

[ivrynx]

First of all, we cannot say that bitcoin is a bubble, if you are coming from an old way of thinking, in which money should be regulated and be centralized, and should be controlled by a governing body, you will say that bitcoin is a bubble, since you will trust those personalities that banks also trusts, to promote their company, they will speculate and compare that bitcoin is a bubble, simply because it will destroy their career, but if you are in favor of having a decentralized monetary system, you'll defend that bitcoin is not a bubble, and in reality it is not a bubble. What they need to check is bitcoin is considered as an asset an as currency, and being compared to gold is close than being compared to tulip mania or dotcom boom.

[Jmabion134]

Yes the bitcoin is the biggest bubble of all time ,when it go bigger and bigger theres a posibility that the bubble will bursed because of people panic when the bitcoin price is lower and lower the people was sell their bitcoins and the price will dump like a big bubble that bursed in the sky

[AlienSeeker]

I do think that bitcoin will crash any time soon, but still, if it will dump, I don't think that it will crash hard, to the point that it will not have any value, I think it will be back to the price of it before the first fork in August this year.

[Washball]

Many people are warning that we might be in a bitcoin bubble. Governments, banks, financial institutes, they all warn us to be careful although they're also into bitcoin. They all compare it with the tulip bubble, but the point is, we have not seen this bubble burst and it does not look like It's going to. There might be a correction, the price may fall to 14K or maybe even lower. But the price will remain above 8K, no matter what. So there's no bubble, at least, it won't burst.

[Chosenpai]

I really think that it's because of the high demand coming from new places and people who have gained interest in Bitcoin. Also, it's either because of its technology or simply the price and potential gains.