We're far away from the cryptocurrency bubble crashing
As bitcoin makes another new all time high, i'm sure many are wondering when the bubble's going to pop. In a post on my blog 3 months ago, i said that at $5,000 the bitcoin bubble is nowhere near popping and now at close to $10,000 it still isn't about to pop either. There are 2 reasons why:
1. Still at an early phase of the bubble
I had previously thought that we had already reached the "Mania Phase" of the bubble given how often we see news articles in the financial press about the high price of bitcoin. Now, i'm not so sure though. We might actually be just beginning the "Awareness Phase" with new institutional investors like Fortress Group and the new bitcoin ETF coming on to the market. There is still a lot of smart wall street money sitting on the sidelines out there.
2. Overall crypto market is still small
All bubbles pop because there's no one left to buy. One day the buyers just don't show up and the sellers cannot offload their wares. This sets off a panic in the market and causes a crash.
The cryptobubble is often compared to the dot-com bubble back in the late 90s. The big difference though is that the NASDAQ market capitalization was in the trillions. The entire crypto market is only roughly 250 billion (above chart is slightly dated). We still have a long way to go before there is no one to offload to.
Keep calm and carry on
When you talk to the folks in the office, have they even heard of bitcoin and the other cryptos? Chances are most probably haven't. We're still among the early adopters so there's a long way to go before the party ends. Keep calm and carry on Steeming :)
I agree, bubble thing is long way to happen, i think, more than 50% of the world didn't know about bitcoin
For sure. We'll have crashes along the way but they'll be fairly short lived imo. $2,800 a few months ago seems like a steal now. $800 at the start of the year... wow.
Ahm, $8000?
I don't consider them though as bitcoin crash but a mere bitcoin correction,
this fud they keep on spreading that bitcoin bubble thing, a $1000 value for bitcoin after our current $9k/btc, I think I am immune on this bitcoin bubble issue!
The funny thing thing is that they will recommend you to transfer your btc to the alts they are into like bch, the most controversial one also!
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