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RE: Bitcoin $17,000 Target Update & SegWit2x Returns
Thanks for the nice video again. I just have one question for you. Aren't you worried that there is so much media hype about bitcoin and crypto currencies in general and soon that will cause some economic crisis. I am just seeing people selling out their stocks from traditional markets and investing their lifetime savings into bitcoin. I could be wrong but I started to feel that the stock price of industries other than cryptos will soon drop and companies will soon face financial problem (might even collapse in the worst scenarios).
If my memory serves me well, cryptovestor did mention that crypto savings would pretty much be the first thing to go. perhaps it was someone else, who said this, i've been watching so many youtube videos, but the idea of the video was if the economy turns to shit, people won't sell their houses or stocks, but rather crypto first
I don't think so - most people who invest in stocks don't pull out of them just because there is another asset class doing well. It'll attract some capital, but there won't be a flight to cryptocurrencies especially not while the stock market is doing well too. Keep in mind it takes a special type of mindset to invest in cryptocurrencies which are (at least in my opinion) clearly a bubble and have little intrinsic value so not much determines if they should be twice or half their current price.
Hey Cryptovestor, you always mention, that cryptos are in a bubble and that it is going to pop. But isnt it always a bubble, if the price of an asset is higher than its value? And clearly the value of cryptos is not very high right now, but fundamental investors would bet, that the value is going to raise in the future and eventually meet the price, which represents its value.
If you look at Tesla for example, it is the same bet like in cryptos. Zero return on investment, selling like 50.000 cars a year, but its price is at the same as GM. That is also a bubble, because people are betting on, that Tesla is going to be another big premium carmanufacturer.
"A bubble is an economic cycle characterized by rapid escalation of asset prices followed by a contraction" (Invesopedia). So, we have not seen a (large) contraction, thus is not not a bubble (yet). We would not know if we are in a bubble or in the initial growth of the asset. The same applied to Tesla.
https://www.investopedia.com/terms/b/bubble.asp#ixzz52UmAbHG4