Is Bitcoin in a Bubble- If so,what kind?
An excellent Bitcoin article by Adam Lemon in dailyforex.com
My assumption from the article is that provided Bitcoin survives in its present uncontrolled and fixed state, it will inevitably appreciate against all fiat currencies, with the only discounting arising from the question of whether it will become fully accepted as a convenient, usable legal tender.
A factor within this is whether other crypto-currencies could eventually usurp Bitcoin’s leading role: it is worth noting that the capitalization of other crypto-currencies has begun to exceed Bitcoin’s capitalization.
If you believe that Bitcoin will maintain its dominance over other individual crypto-currencies and eventually become widely accepted, then there is every reason to believe that a Bitcoin is worth at least $1,600 right now.
If this is true, then Bitcoin might be overbought and due a substantial correction, but it could not be said to be in a bubble comparable to Tulip Mania or the first British joint stock companies of the 17th century. This case also supports Bitcoin as an attractive medium to long-term investment.
Unfortunately, (Adam Lemon) sees a dangerous overreach in assuming that Bitcoin is going to be a freely convertible,fungible(exchangeable or replaceable)currency, i.e. that it will be available to everyone who wants it and will be generally accepted as payment.
This is far from assured, and with governments finding considerable value in maintaining present fiat currency systems which may be inflated to write off debt, why would they sit back and allow bitcoin to usurp national currencies as a medium of exchange?
If Bitcoin is going to remain the preserve of bohemian tech enthusiasts, much as it is today with less than 6 million individual users, then it is in a bubble and is enormously overvalued.
link to article in full -http://www.dailyforex.com/forex-articles/2017/06/is-bitcoin-in-a-bubble/80966
Interesting article!
I think its possible to find pieces written that predict sharp declines, sharp rises and sideways motion for Bitcoin. In other words, nobody knows!
I don't think this is true. Bitcoin is still, and has always been number 1 in market cap. http://coinmarketcap.com/charts/#dominance-percentage
But Etherium is coming close, and people talk of The Flippening, where ETH tops BTC. EOS is on the horizon with its ICO starting tomorrow I believe. It will be interesting to watch, as it seems to do all that Etherium does, but better. Dan, who put together Bitshares then our own Steemit, is behind EOS.
Bitcoin may be on the decline, but I think the cryptocurrency space is on the rise, and my strategy is to diversify into about a dozen of what I consider to be strong players with a shot at a good long future of appreciation. I have also taken profits on coins that are up 1000s of percent. But I'm still mostly in, and still see potential gain.
Thanks for sharing this and I hope you're doing well!
Thank you kenny-crane. I note it's run foul of cheetah though.I don't like breaking rules,but how can one tell it's already been done? I'm keeping well thank you.Lower leg circulation (Heavy leg syndrome) makes walking some days seem like walking through mud.I'm thinking of supplementing the Gingko Biloba herbal approach with an aspirin a day.Giving it some thought.Don't want a conflict.
I'm not sure what Cheetah's algorithm is. Maybe it noticed the image from the dailyforex article, or you used more than a certain threshold of words from the original in your taster. I guess just giving a link to an article and including only your analysis on here might alleviate the issue.
I've heard good things about Gingko and have used it myself at times. I'm not sure if it helped me, because I didn't really have specific issues at the time, I just took it as a general health aide. I'm not sure what the aspirin will do, but the usual disclaimer is, "talk to your doctor". :-) I hope your new approach works for you!