Is Bitcoin the Biggest Bubble in Human History?

[mhsingh]

The market is finally showing some weakness after a wild post-election stock market run-up, and it's taking Bitcoin with it. At least so far.

Three years ago, Bitcoin was under $400, a price I thought was too high even then. As far as I'm concerned, Bitcoin has no intrinsic value and should be worth nothing. So why does anyone think it's worth thousands (and in some cases, millions) of dollars?
It's the theory of false scarcity. There are a limited number of bitcoins in the world and the usage of blockchain technology has assigned the ownership of each coin to specific wallets owned by individuals. So to take "ownership," I have to use the universal blockchain mechanism, accepted by all as valid, to transfer a coin.

[Kakmakr]

The market is finally showing some weakness after a wild post-election stock market run-up, and it's taking Bitcoin with it. At least so far.

Three years ago, Bitcoin was under $400, a price I thought was too high even then. As far as I'm concerned, Bitcoin has no intrinsic value and should be worth nothing. So why does anyone think it's worth thousands (and in some cases, millions) of dollars?
It's the theory of false scarcity. There are a limited number of bitcoins in the world and the usage of blockchain technology has assigned the ownership of each coin to specific wallets owned by individuals. So to take "ownership," I have to use the universal blockchain mechanism, accepted by all as valid, to transfer a coin.

Why are you still hanging around on a forum, dedicated to Bitcoin, if you do not believe in the technology? What intrinsic value does other products and commodities have, other than the demand for it? Bitcoin's intrinsic value is linked to the weight of it's use case.

If you want to send money from one country to the next and you want to do it cheaper than MoneyGram or Western Union, then you use Bitcoin. <for ANY amount> This is just one of the use cases for Bitcoin. <Hassle Free>

[hase0278]

Why are you still hanging around on a forum, dedicated to Bitcoin, if you do not believe in the technology?

His reason for hanging around on a forum dedicated to bitcoin is obvious. He want's to share his opinion of bitcoin and wants to start a discussion with it. That's the common reason someone who does not believe in bitcoin lurks here for.

It's the theory of false scarcity. There are a limited number of bitcoins in the world and the usage of blockchain technology has assigned the ownership of each coin to specific wallets owned by individuals. So to take "ownership," I have to use the universal blockchain mechanism, accepted by all as valid, to transfer a coin.

Then what do you think is the reason why fiat currencies have value despite it being just a paper? Because it is backed by government? Fiat currencies have value because most people sees it as the most convenient currency to use to transact daily(supply and demand). It is the same in bitcoin's case but instead it is being used to transact online.

[Hellobx]

I don't think, just too many people want to profit from the bitcoin, led to excessive bitcoi prices, but the bitcoi in the future could become international currency, so I think the bitcoi is not a bubble,

[Anti-Cen]

Yes it's tulip mania and the price would had gone by my estimation to about $50k but just when
Joe Public turned up the miners got greedy and thought they could turn the fact that Bitcoin
could not scale into a profit by charging $55 in transaction fees.

Now the very same miners want to become mini banks on the lightning network by operating hubs
but the cat is out of the bag on that upcoming scam.

There seem to be a bit of panic around here, someone keeps pumping the old threads back to the top
of the forum so "Am i too late to buy BTC" no you are not, bigger fools are always welcome here but a
sprinkling of truth is not.

 

[pawanjain]

If you think Bitcoin has no value , then gold, diamond and pearls should not have any value too. Its the humans who give a value to an asset. The only difference is that Bitcoin is virtual and the others are physical. Who knows, gold , diamond and pearls might be just stones in some parallel universe. So we can't say that Bitcoin or any cryptocurrency has no value at all. It took 9 years for BTC to reach at such price.

[avikz]

The market is finally showing some weakness after a wild post-election stock market run-up, and it's taking Bitcoin with it. At least so far.

Three years ago, Bitcoin was under $400, a price I thought was too high even then. As far as I'm concerned, Bitcoin has no intrinsic value and should be worth nothing. So why does anyone think it's worth thousands (and in some cases, millions) of dollars?
It's the theory of false scarcity. There are a limited number of bitcoins in the world and the usage of blockchain technology has assigned the ownership of each coin to specific wallets owned by individuals. So to take "ownership," I have to use the universal blockchain mechanism, accepted by all as valid, to transfer a coin.

Technically you are right. Bitcoin doesn't have any intrinsic value if I look from your perspective and the value should be zero. But again if I look at the blockchain technology keeping the bitcoin aside, I see immense future use of this technology. We are yet to discover the immense possibilities it can offer in our daily life. We have probably discover 10% of its possibilities and rest 90% will come up in future.

You can see major governments are now researching on blockchain technology to put it in its rightful use. There are big consulting companies like BCG, Deloitte, EY are recruiting blockchain professionals to discover its diversity. So the technology itself has a value. Bitcoin being the pioneer of this technology, inherited that value. So if you look from my point of view, you will see a value.

But if I keep everything aside and talk about just the price, it is a store of value. While rest of the world riding the tide, why would I not do the same and earn some money in that process? It doesn't matter whether it has intrinsic value or not. Till the time, there is a market for bitcoin, you will always see people like me riding the tide.

[btcprospecter]

The value will always be linked to whatever someone is willing to pay for it as we saw in the tail end of last year bitcoin was a hot product that everyone wanted more so as they seen the value rise.
Although as a result higher value ment that many saw good profits and wanted to sell.

[DooMAD]

Derivatives are empirically the biggest bubble in human history.
  
"an arrangement or product (such as a future, option, or warrant)
whose value derives from and is dependent on the value of an
underlying asset, such as a commodity, currency, or security."

They have no intrinsic value and are purely speculative.  There is no other function or purpose.  Yet banks, hedge funds and retail investors can all make bets on assets they don't even own in an attempt to turn a profit.  Pure, unbridled gambling.  As a bonus, it has a strong tendency to sway the prices of many of the underlying goods people actually need to buy, which ends up costing you, the consumer, money.  And best of all, it continues to spiral into a debt that can never be paid off, since the "market value" (although it has no actual value) of this magical casino is now in excess of all the "money" (which isn't exactly real either) on the face of the planet and continues to grow larger by the second.  In the time it has taken me to write this post, it's fair to assume another few million dollars worth of completely non-existent "arrangements" have been created out of thin air.  

Bitcoin is remarkably sane and rational by comparison.  But the media will never tell you that.

[lghdt943]

The market is finally showing some weakness after a wild post-election stock market run-up, and it's taking Bitcoin with it. At least so far.

Three years ago, Bitcoin was under $400, a price I thought was too high even then. As far as I'm concerned, Bitcoin has no intrinsic value and should be worth nothing. So why does anyone think it's worth thousands (and in some cases, millions) of dollars?
It's the theory of false scarcity. There are a limited number of bitcoins in the world and the usage of blockchain technology has assigned the ownership of each coin to specific wallets owned by individuals. So to take "ownership," I have to use the universal blockchain mechanism, accepted by all as valid, to transfer a coin.

Do you know what the world's largest bubble is? I think it is a brick and stone. It doesn't have any effect except cutting things, but because it is worth a thousand times an ad, an ornament can be like this, but people will think of masonry. Is it a bubble, no? So why is bitcoin a bubble?

[gilangIDR]

The value will always be linked to whatever someone is willing to pay for it as we saw in the tail end of last year bitcoin was a hot product that everyone wanted more so as they seen the value rise.
Although as a result higher value ment that many saw good profits and wanted to sell.

As more and more things are used and the more interesting the bitcoin value will continue to rise, it happens to all things and never underestimates the power of popularity. Bitcoin is now a highly calculated thing that everyone is trying to have and also get it, bitcoin has become an incredible investment commodity.

[aghdgv]

There are many theories about the Bitcoin bubble. Many economists have already indicated that the bit will die in 2018. Although economists often oppose Bitcoin and even believe Bitcoin will die, Bitcoin still exists. This shows that they only want to Show your own professionalism and spread the rumors.

[racistyui]

The market is finally showing some weakness after a wild post-election stock market run-up, and it's taking Bitcoin with it. At least so far.

Three years ago, Bitcoin was under $400, a price I thought was too high even then. As far as I'm concerned, Bitcoin has no intrinsic value and should be worth nothing. So why does anyone think it's worth thousands (and in some cases, millions) of dollars?
It's the theory of false scarcity. There are a limited number of bitcoins in the world and the usage of blockchain technology has assigned the ownership of each coin to specific wallets owned by individuals. So to take "ownership," I have to use the universal blockchain mechanism, accepted by all as valid, to transfer a coin.

I view crypto investment (at least in the form of small cap ALTs) as akin to venture capitalism & tech startup funding.... Except instead of allowing the crypto/tech/platform to organically grow, mature, gain adoption, and prove its model/concept in private without prying eyes before listing on public exchanges/markets, these cryptos are instantly thrust into highly subjective, speculative, and emotional exchanges/markets that also aren’t safeguarded from manipulation. TA isn’t really meant to apply in these type of Wild West scenarios/markets. Still, knowledge is power and more information can’t hurt you. I utilize TA, but I don’t necessary think it can be the sole guiding factor of my crypto trades. It’s just one of many different investment/trading strategies to utilize in your decision making process.

[ganlianshifu1]

I think diamonds are the biggest bubble!

Diamonds have little practical value in life, and diamonds are less likely to be like gold because of their monetary properties, which can be traded on a large scale and can be kept at any time.

[Mpamaegbu]

This argument about bitcoin being a bubble has gone forth and back with weak (and sometimes with concrete) standpoints. We are yet to see the end of it. But I know that what gives a thing its intrinsic value is demand and this is what bitcoin has been able to achieve. We may think its price is way too high but wait for it as the popularity around it continues to spread with its limited supply.

[Ctn]

Just because bitcoin is dropping in the value means nothing in the reality. The drop of bitcoin and rise of the same is completely different thing and worth nothing to call it as bubble. Bitcoin always has been painted with the color of bubble and it's completely wrong as we can see that since many years. Everytime people start predicting that it is a bubble then bitcoin starts moving upwards and thus their predictions fail. Later on same people start talking about the greatness of bitcoin and call it as greatest invention of all time. I don't think that anything of this is true, it is just people's concept in reality and nothing else.

[Ozero]

A banknote is not just paper. It is fully provided by the state, its gold and foreign exchange reserves and the gross domestic product. If another state offers banknotes to this state, the state whose banknotes are obliged to redeem it and pay for them with gold. Bitcoin is really not provided with anything. its price is kept only by the ratio of demand and supply. With a very high demand and, accordingly, a large price, bitcoin, which has no intrinsic value, will pose a significant risk to its investors, as it will be able to quickly lose its value and be blown away as a bubble. Maybe on. This will not happen in our life, but humanity still has to experience it. What then will be generally with a crypto currency, while it is difficult to say. This may not happen if the state can somehow limit the price growth of bitcoin and crypto currency in general. However, this will be another crypto currency, not decentralized. Therefore, if bitcoin remains decentralized, it will necessarily prove to be a bloated financial bubble.

[Prolly11]

No. The train railroads boom was bigger.

Everyone exaggerating bitcoin boom, but it never even really affected mainstream economy yet...

[mhsingh]

Well I agree to some of the replies and some to not, I depends upon the Human thinking about the values of any object.

[pat231]

I don't really think so as Bitcoin has given many of us opportunity to earn a good income apart from our work so it is not bubble but its a biggest earning opportunity in Human History BTC