Thoughts From People Who Think We're Not In A Bubble
Can someone who believes that we're not in a bubble explain to me how this is sustainable?
Please explain in a financial sense how this is sustainable?
In my opinion, clearly it's not and that's why I'm in all cash right now...however we know bubbles always last longer than people think.
I'd love to hear thoughts on how this can perpetuate and continue, ESPECIALLY without usage.
Explaining "ESPECIALLY without usage" is impossible. Because it is being used, so much so that the bitcoin transactions blocks are full and have been for some time. In fact people have recently been bidding the cost up to very high amounts per transaction, so there is a real usage and demand being undeniably demonstrated. The alt-coins? Could be a big bubble waiting to pop in those I cant deny that.
Bottom line...it is completely unsustainable. I am staying away for the stock market and the real estate markets as a whole. They are both going to crash and burn in the next down turn. I have everything in cash too. This way we can sit on the side lines and watch it implode. When the time is right jump in and start buying assets that will go up. I call it the Rothschild approach to markets and life.
Yep! My thoughts and strategy too. I've actually had to fight off my wife who wants a bigger house from our condo because I keep telling her it's over bought and there will be a huge crash for stocks, houses, crypto, etc.
"Bubble" is all relative...I think all markets have various phases especially when new...in the end its all about how many dollars...or whatever currency one uses...are chasing the investment...even the US stock market works that way...once the amount of dollars available to buy slows down...momentum shifts and sell offs happen...the magnitude of sell off depends on how much leverage has been built in with traders...this current crypto market is still young...there's a lot of money available to still come on board...as a % of asset investments...crypto barely registers on the radar...so my belief is if it continues forward in some form or another...certain coins will explode upward based on dollars still on sidelines waiting to come on board...
The crypto market is not homogeneous. There are cryptos that are designed to function as money, e.g. Dash, platform providers, e.g. Etherium, and on top of platform providers, services, e.g. Populous, 300cubits that offer better real world solutions than any currently commercially available. Lump that all together and we have total market cap.
BUT this total market cap is tiny compared with other financial/asset global markets. It is still in its infancy. What was the market cap for mobile phones when people lugged them around like suitcases?
If you watch a child growing would you say the child is in a bubble? Or just growing? Growth normally occurs until maturity is reached. The crypto market is based on an intellectual breakthrough and the exploitation of this breakthrough has a long way to go.
Put in perspective. Whoever invented the number series that included the concept of zero probably did not foresee its application today as I type this just based on ones and zeros.
Well said...
A child grows and develops over time....slowly. If the child was 7 feet after his 1st birthday (even his 6th or 7th), you'd definitely wonder what's going on. I have no doubt the crypto markets will be worth much more than this in the future....however this instant growth boom is purely based on greed and speculation as most blockchain projects people are trading haven't even been developed or being used widely. There's nothing fueling more demand besides prices going higher and people getting greedy. In finance, these patterns can't sustain. In 2013, people (myself included) said the same things that it wasn't a bubble and everything and then look what happened. It WILL come back down.
I think we'll still experience many bubbles with cryptos, especially while it's new. Look at 2013.....same scenario here and nothing's really different except more attention and hype and some new cryptos. Sure, there's a lot more money to come on board....but there will be way more once cryptos are actually utilized. No parabolic movement has ever sustained in a financial market. All the money and hype coming in here is pure greed. No one is using bitcoin for purchases. People are buying cryptos for trading and to hold. That never sustains.....bubble. It'll come down eventually and then it'll settle until the next crypto bubble starts. It's happened time and time again, so no reason to think it won't here especially when they're not even doing anything.
Can't disagree with what you say...the speculative money is way ahead of the actual technological use of the blockchain design...but knowing that...one tries to carve out what they can while it lasts.