[2017-11-22]The Elephant in the Room: Cryptocurrency’s Massive Bubble(s)

[Chase]

The Elephant in the Room: Cryptocurrency’s Massive Bubble(s)

There has been some consensus developing among experts that cryptocurrency is experiencing a bubble. What sort of bubble we are dealing with remains to be seen, and there are varying opinions on this complex matter. While the industry as a whole has barely begun to fulfill its potential as a developing financial alternative, there certainly appears to be a handful of distinct bubbles forming within the walls of what it might become...

Read full article - https://dnotesedu.com/2017/11/the-elephant-in-the-room-cryptocurrencys-massive-bubbles/

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[iamTom123]

The more that these so-called experts are calling cryptocurrency (specially Bitcoin) to be a big bubble, the more that we are experiencing astronomical growth. Right now, admittedly, there can be more speculations in the market as there can be a big rush and push from people who are new into this whole thing and many of these newbies are very digressive knowing the history of how Bitcoin made big fortunes for people who had been here for a longer time. The rush is happening now...people don't want to miss out...the Fear of Missing Out (FOMO) is affecting all of us. What will happen after this phase remains to be seen but certainly a long ride will find some rest -- not end but just some rest enough to gather for more energy for another bull run. Will the market be swayed differently since Bitcoin can never be compared to other investment vehicle or will human nature be the overall winner on this regard meaning that history would just be repeating itself? I am excitedly watching the development on this issue and personally hoping that there would be a happy ending before we go to another sequel of the same story -- ala Star Wars?

[senin]

Now we can observe the situation when the bitcoin price is rising not due to the increase in its intrinsic value, its technological improvements and convenience in use, but due to the rush demand for it, which is shown on the basis that people do not want to miss the opportunity to make a profit for account for raising its rate. Therefore externally bitcoin is similar to an ordinary financial bubble. However, the crypto currency, its properties have not been fully investigated yet. Maybe the nature of this particular increase in its value is the norm for it? While we can not answer this question. It takes time and practice to do this.

[Guardian.P]

For example, in Japan already in all use bitcoin. What kind of bubble can there be? Of course, if you create difficulties for him, you can really think so. I think that in the beginning great popularity will be used by small countries to use bitcoin, only then will big ones come

[uslfd]

Well bubble or not, time will tell.
BTC had been a bubble in the past, but it grew out of it and became something bigger and better.
Everything could be a bubble, fiat currency is also in a bubble but it doesn't mean it will die tmrw.

[jjacob]

The bubble is not restricted to Bitcoin - all asset classes ranging from real estate to equities have seen huge jumps in valuation. The problem of course is quantitative easing and loose monetary policy by banks across the world.
We could have a recession when there is a correction across asset classes.

[LuanX3]

The Elephant in the Room: Cryptocurrency’s Massive Bubble(s)

There has been some consensus developing among experts that cryptocurrency is experiencing a bubble. What sort of bubble we are dealing with remains to be seen, and there are varying opinions on this complex matter. While the industry as a whole has barely begun to fulfill its potential as a developing financial alternative, there certainly appears to be a handful of distinct bubbles forming within the walls of what it might become...

Read full article - https://dnotesedu.com/2017/11/the-elephant-in-the-room-cryptocurrencys-massive-bubbles/

I have read so much about this -- that Bitcoin is the biggest bubble in history! But you know, these naysayers would always do everything they can to hit Bitcoin investors' confidence about the money they poured into it. What better will it do them, perhaps? In the first place, these investors are using their own money. Why put so much fuss on how these people spend theirs?

They have not laid down data to prove their accusations on it. They have to at least show something tangible to prove that dealing with Bitcoins is a loss. 

[onrise]

For example, in Japan already in all use bitcoin. What kind of bubble can there be? Of course, if you create difficulties for him, you can really think so. I think that in the beginning great popularity will be used by small countries to use bitcoin, only then will big ones come

The reason why many are shouting its a bubble is due to sudden rise in the price and the still continue to rise. People where expecting the downfall when it cross 10k but form their generally it kept on rising apart from few occasion where some fall took place. And after every expert who has told it is a bubble the prices have risen only.

[darkangel11]

For example, in Japan already in all use bitcoin. What kind of bubble can there be? Of course, if you create difficulties for him, you can really think so. I think that in the beginning great popularity will be used by small countries to use bitcoin, only then will big ones come

They are calling it a bubble because of its incredibly fast growth, but there hasn't been anything like it since the invention of the Internet. Facebook has been going through a similar stage, the difference is that it's not a tradable asset, just a company, while BTc is independent and decentralized. While FB can be shut down by the US gov, BTC can't, but i'm sure you all know it already. I hope the naysayers will realize it too and better sooner than later (for them, not for us).

[CyberKuro]

For example, in Japan already in all use bitcoin. What kind of bubble can there be? Of course, if you create difficulties for him, you can really think so. I think that in the beginning great popularity will be used by small countries to use bitcoin, only then will big ones come

They are calling it a bubble because of its incredibly fast growth, but there hasn't been anything like it since the invention of the Internet. Facebook has been going through a similar stage, the difference is that it's not a tradable asset, just a company, while BTc is independent and decentralized. While FB can be shut down by the US gov, BTC can't, but i'm sure you all know it already. I hope the naysayers will realize it too and better sooner than later (for them, not for us).

Yes, the best point of bitcoin; it's decentralized monetary system which can't be stopped by the government even if a country ban bitcoin, doesn't mean people can't use it as a medium of exchange, to transfer funds everywhere across the globe.
It's enough with the word of "Bubble", bitcoin has real usability as an alternative currency, although bitcoin network still can't afford massive transactions.
Bitcoin just need two things to achieve another milestone; proper scaling implementation and acceptance in some countries such as in Japan.

[Harlot]

Let us not criticize this experts as there definition of a bubble is by the book, what I mean abou that is all the criterias of a bubble is present in Bitcoin. From being an overpriced asset whiche its perceived value is higher than its real value, which is really hard to identify as Bitcoin as of right now still doesn't have any fair market value or even in the future as the asset exist virtually and the only thing determining its price is demand.

[Taki]

For example, in Japan already in all use bitcoin. What kind of bubble can there be? Of course, if you create difficulties for him, you can really think so. I think that in the beginning great popularity will be used by small countries to use bitcoin, only then will big ones come

That's right. Bitcoin is legalized in Japan and Australia, some other countries are also close to that. So, how bitcoin can be a bubble if people so involved in that and even whole countries. It is just impossible! I can suppose that one day the price for bitcoin will fall deep again, but I don't doubt that there will be people who will buy it by some low prices and that will awake a new raise.

[hatshepsut93]

Let us not criticize this experts as there definition of a bubble is by the book, what I mean abou that is all the criterias of a bubble is present in Bitcoin. From being an overpriced asset whiche its perceived value is higher than its real value, which is really hard to identify as Bitcoin as of right now still doesn't have any fair market value or even in the future as the asset exist virtually and the only thing determining its price is demand.

There no such thing as "real value", value is a very subjective thing created by each individual's mind, and then some people reach agreement about that value on open market. I would rather describe speculative bubble as a negative occurance that happens when investors are buying because they believe that the price will increase without any clear reason, mostly based on FOMO and greed for quick returns. This seems to be the case with Bitcoin because a lot of newcomers and curious people are threating Bitcoin as get rich quick scheme, but at the same time there are many investors who value Bitcoin for its technology and economic implications - and those people are far less likely to panic sell and cause a crash, in my opinion.

[SummerBliss]

The more that these so-called experts are calling cryptocurrency (specially Bitcoin) to be a big bubble, the more that we are experiencing astronomical growth. Right now, admittedly, there can be more speculations in the market as there can be a big rush and push from people who are new into this whole thing and many of these newbies are very digressive knowing the history of how Bitcoin made big fortunes for people who had been here for a longer time. The rush is happening now...people don't want to miss out...the Fear of Missing Out (FOMO) is affecting all of us. What will happen after this phase remains to be seen but certainly a long ride will find some rest -- not end but just some rest enough to gather for more energy for another bull run. Will the market be swayed differently since Bitcoin can never be compared to other investment vehicle or will human nature be the overall winner on this regard meaning that history would just be repeating itself? I am excitedly watching the development on this issue and personally hoping that there would be a happy ending before we go to another sequel of the same story -- ala Star Wars?

Whatever you just explained is the building of a massive bubble. People FOMOing, astronomical growth, but why? Because demand. But why demand? Because high ROI. Why high ROI? because demand.

Isn't this a scary loop?

Bubble is definitely building up. No matter if bitcoin is build upon a completely different economic model, anything which involves money has to go the traditional way. But whether bubble will burst now? Absolutely not. This will go for more 3-4 yeas easily. Because bubble has only started building.