When people you know say cryptocurrencies are in a bubble
People I know often say, I'll get into cryptocurrencies after the bubble pops. People look at the graphs and say "markets never go up like that". Let me provide a bit of context for those people.
So the skeptic thinks the buying opportunity will come at 40-50B of market cap, but how does that look in context to other markets?
Note read the following italics comments with heavy sarcasm.
Hmm I guess the buy at amazon is at 400, since it is obviously in a bubble!
I guess Apple, one of the cash richest companies on the planet, is also in a bubble. I'll just wait until it goes back down to under 50, surely all 10 years worth of growth will have to return to the "baseline"
Pfft, that's way overvalued. No one would pay close to $1000 for that. Look at that graph, it only goes up, I'll just wait for the correction, and buy it when it gets back to 2005 levels.
How many of you have heard these arguments or have friends/family members that make these style of arguments when you talk about crypto with them?
Many people come up with excuses to justify their own fear. They do not dare to take risks, therefore they collect as many reasons not to act upon their instinct to justify to themselves that they are not afraid, and using these arguments against others is easier. It doesn't matter though! In the end, it's those who dare to stick their neck out that ultimately reap the rewards!
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@isacoin
Easiest way is asking whether they own Bitcoin. If not, we are not in the last final bubble stage.
For talk about a medium term bubble, I can only refer to comparisons to real bubbles of the past and the fact that the technical indicators currently do not indicate a bubble yet. For that, price would have to surpass $15k.
See for graphs illustrating my thoughts: https://steemit.com/bitcoin/@wekkel/bitcoin-in-a-bubble-no-way
What a good article, I'm sorry I couldn't upvote it 21 days ago. Giving you some love now though, Good Job!
Thanks, appreciated.
Not true. 100% of the people don't have to know about and want something for a bubble to form. Many limited production vehicles are released at "bubble pricing" the minute they hit the showroom floor. 2016 Dodge Challenger Hellcats are a good example. When the higher horesepower Challenger Hellcat came out for model year 2016 the initial shipment to hit dealer showrooms were all being sold for $10K above MSRP. Now you can walk into a dealer's store that still has one and he will gladly sell it to your for $15K below MSRP. Bubbles form when everybody who wants is gets in at whatever price it takes to do so. And yes, bitcoin is in a price bubble, and so are every one of the stocks you listed. Follow my blog if you wish to learn how to determine if teh "sentiment" driving price is getting overextended at any given time. Sentiment drives price. Sentiment can be used to determine if any asset is overvalued or undervalued, as long as the tools are available that can measure sentiment.
Your example is not a very good analogy. Cars are terrible stores of value, very few cars actually go up in value. However if I were take your example, let me say that the highly sought after and lowly produced Ford GT was easily had for MSRP and went up in value by many times. Perhaps the challenger example is not a good example as it's no supercar and not nearly as sought after.
Additionally sentiment is not an accurate measurement, as cryptocurrencies true values are based off use and spread of the network. Sentiment is only useful as a barometer in speculation on future pricing, not on growing market share. All these technology companies are not in a bubble they are gaining value because they are increasing in use and market share.
If you say so. I guess you will just have to learn the hard way. :-)
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@isacoin
wow your some kind of dense, people who comment on a post are not the same person as those who post.
its because you started spam flagging when i tagged the pump and dump scam
doesnt take a genius
Just HODL till 2020, thats what we should at least do.
Mark Cuban indicated Bitcoin was in a bubble. Lets see him say it again when Bitcoin is at $6,000 in 2 and a half years.
Mark Cuban made all of his money on the dot com bubble, it's kinda hypocritical of him
Thanks @extrospect for helping keep Steem free of spammer trolls. I will reimburse you for your flags. /bow
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@isacoin
Your spamming up Steem and harassing me and my followers. I have spoken to abuse they told me to get whales to flag your spam. @extrospect since your the highest voter please help me with flagging this spammer.
!cheetah ban
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@extrospect
bitcoinsig running scam account zeroshiki
recently trying pump dump scam
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bitcoinsig started spam flagging me after tagging scam for steemcleaners
notice how he downvotes comment me tagging users who upvoted scam here
@steemcleaners
please act on this user ive reported his actions many times
I guess when things are at a all time high, people will always say the bubble will burst soon. But they always forget, what is high can always go higher. The best is go with the trend, cause the market is always irrational.
Use equals value. Amazon, Apple, and Google are all frequently used. Bitcoin and Ethereum are being used so much the networks are at full capacity, so yeah that's probably a very good sign of things to come.
I think steem will be really pickup on use soon.
Yeah, When the masses start getting accustomed to Steemit or other cryptocurrencies then the value will be on an upward trajectory. Took us awhile to get use to Amazon and Google.
I can't even get to the step of arguing with someone about crypto, haha. My friends/family won't even bother looking into Steemit or cryptocurrency after I've told them about it. I've heard enough people online saying that though, so I've got that going for me, I guess, lol.
I always find there is always a reason they give not to buy and then they say well I guess I should have bought when it explodes, but then they never actually do buy lol
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@isacoin
When people tell me this my response is "Hey have you seen the video '2 girls 1 cup?' No? Its amazing here lemme pull it up I have it bookmarked and we can watch it here real quick.... problem solved...
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@isacoin
Just a smash into so-called market analysts' face.
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