Does Bubbles add real Value to economic growth?

[youdacapt]

Regarding Musk action as regards club house; i think it is more than just a bubble; its a proper well thought marketing action; Musk having a clubhouse room on crypto currency means that there will be new clubhouse users; several subscriptions; and application usage and that means great revenue and price turnover for clubhouse owners; it is more than a bubble; it is a genuine economic growth.  Atleast to my understanding

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[redsun114]

Over the weeks, we have seen bubbles being created in the market by some powerful people such as Elon Musk.

For instance, he recently tweeted that he will be speaking on Clubhouse today regarding DODGECOIN. Adding this to the reditt marketing force.

I want to know if the bubble these economic agents create will add to the value of the economy.

Well, it’s already doing that ,it’s adding value and when it’s all over the value will still drop to a lower rate. Nothing much, everything is like a pyramid, everything in the world I guess, even the currencies we have. They say it’s based on supply and demand, so as long as people continue to believe in that particular asset or money, it’s going to keep growing.

In the case of Dogecoin, a situation like this will likely be creating more awareness for it, since I hardly sees anyone talking about Dogecoin, but with all these bubbles it has been able to gain the interest of public and everyone is now talking about Doge, which means, definitely, that a lot of people are heading towards it.

[bluebit25]

But if you're talking about a little problem during a big event, let's look back at the reasons why it did. Is the profit that many have in your opinion is lucky? I believe not, since the final goal of these people is unknown, we will encounter more events like this.

[Coyster]

The Bubble you're referring to is in the area of cryptocurrency I guess, and you're equating it being able to provide growth in the traditional economy, this isn't possible. Having said that, if it's simply based on cryptocurrency value/growth, imo, hype is what results in a Bubble most times, when certain individuals or sporadic appreciating price movements causes an Influx of Investors into a network, it usually causes a spike that's most times called a bubble when it actually dumps, imo, it can add value in the sense that it increases the demand (investors) for such coin, and if it does maintain it's value and doesn't plunge, then it wouldn't be referred to as a bubble.

But most often than not, it crashes/dumps, then people make assertions that 'the bubble has burst', that way it fails to add real value to the growth of the particular network, Bitcoin was once touted to be a bubble initially when the price started to appreciate, but after a period of sustained development, it's now overperformed to be called that anymore, that would have been the case of most coins that have been called bubbles if they didn't 'burst'/dump.

[Hydrogen]

~~~
 Many things which aren't bubbles, are called bubbles. While many real bubbles go unacknowledged and ignored.

Reading through your comment point out to me that there are possibly two kinds of bubbles, the real bubble and the unreal.

But, you didn't give examples as to which is the real bubble? If you can, that'll help everyone following the thread to learn.

https://www.youtube.com/watch?v=HQ79Pt2GNJo


It helps to know experts and analysts warned about a real estate bubble in US markets as early as 2005 (see above). Roughly 3 years before the subprime mortgage crisis and global economic crisis of 2008. US treasury secretary (at that time) Henry Paulson said "no one could have predicted this disaster". Even though analysts and experts had predicted it for 3 years prior.

I guess that is one example of a real bubble. Which official institutions typically turn a blind eye to and refuse to acknowledge exists.

There may be similar bubbles today. But experts and analysts no longer discuss real bubbles as they did in eras past.

Discussion relating to bubbles now usually amount to no more than media hysteria, gaslighting and blind outrage.

[Wenbing]

By doing the bubble, this will only temporarily improve the economy, and even then it depends on someone who can place a position by buying at a low price before the bubble occurs. We know that many fell from yesterday's DogeCoin hike and there were artists who were also disappointed that they had lost around $ 150,000 buying at $ 0.08 ... so to reduce it, it would cost small traders in the crypto industry, especially Doge, nearly 50:50 losses and advantage.

You know I actually speculated that Dogdecoin will rise when Elon Musk was about speaking at Clubhouse. I didn't just speculate, I bought at 0. 04047.

It later turned out that Elon's comment about the coin couldn't cause it to rise. I made a loss before selling of. That's how people lost money during bubble.

Regarding Musk action as regards club house; i think it is more than just a bubble; its a proper well thought marketing action; Musk having a clubhouse room on crypto currency means that there will be new clubhouse users; several subscriptions; and application usage and that means great revenue and price turnover for clubhouse owners; it is more than a bubble; it is a genuine economic growth.  Atleast to my understanding

Yes,  Elon Musk Clubhouse event had two impacts on two entities.

1. Clubhouse: just as you said, this is a strategic marketing strategy for Clubhouse. It's a form of leveraging on the influence of Elon Musk to grow the userbase. In fact the rooms were full.

2. Crypto : He said he Support bitcoin. That created a bubble that led to the increase in the price of btc.

We are actually concerned about the impact of 2 on economic growth.

[moderator's note: consecutive posts merged]