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RE: Cryptocurrency Is A Bubble (please let me know what you think?)

in #cryptocurrency7 years ago (edited)

This is not a bubble. The inner workings of a bubble are much different than what is taking place. Right now, you have assets (crypto)...that is trying to value itself on the markets. They hold so much potential future value that it is definitely tough to value them, considering their impact will probably be much larger than one could even guess.
Bubbles are the product of greed; this is nothing of the sort!
Regardless, this is not a bubble because in the long term, bitcoin will always be going up versus the US dollar. 16 of 21 million coins already produced...an increasing awareness and demand for bitcoin, coupled with a decreasing production rate........compared to the US dollar which is backed by a nearly handicapped asset (the US government; great spender! Solid decision maker!)....the US dollar is devaluing itself at an increasing rate year over year. 2-3% per year inflation. Accelerated devaluing or accelerated demand? I'm gonna bet on Bitcoin to continue continuing on.

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The Usd has to inflate to survive.. Its created that way.
So yes.. Compare to FIAT currency at large.. And especially the Usd that is the most manipulated asset/currency in history its a better "currency" .. But still FIAT just as what people call "money" e.g Dollar, Euro, Pound Etc.
And you're also right about the backing, if you can call 19 trillion in debt as backing?! Hahaha
But there's one more aspect that we must take in consideration.. And that is competition.
I can 'hear' in how you comment that you know what you're talk about,, and with that also who owns that product called USD .. And how that product is used as a control mechanism , especially since 1971 when Nixon closed the gold window.. So its not only the value of a currency at stake here.. But much much more than that.. i.e WORLD POWER!!
And this is how i see it.. If, lets say when btc start to rally for real and the majority of all liquidity start to move into btc from the Swift/petrodollar system.. And btc will become a competitor for real.. Now we're talking about the POWER suddenly and the value of the dollar has become secondary.. Don't you think that the owner of the dollar will use every tool possible to fight with .. And they own all the tools .. Such as all law enforcement, IRS, all business, all media, one could say they own the entire society.. Not forget the US Army.
Maybe they just make crypto illegal .. Or create their own one and make all the rest illegal ...and the reason for that is that it need to be regulated so that terrorism can't be founded.. And you will see false flags ones a week.
I painted up a fictional future here now.. But still completely possible.
If you think bitcoin only will go up and up and up as you say.. Which i also believe if 77% of total bitcoin already is mined.. You must take this into the picture..

I don't doubt that many central authorities will do everything in their power to avoid a situation where bitcoin becomes a "competitive" alternative to their fiat currency. I've read several things where governments have already tried to take counter-steps toward crypto (and by read I mean the headlines)...but that's the beauty of this whole process. Bitcoin can't be stopped by a central government, unless that government were to purchase every bitcoin in existence, and then no longer allow for trade. Doubtful.

But Pandora's Box has been opened. The central authorities can not shut down bitcoin at any point, because there is no central authority to shut down. It is decentralized. It is everywhere and nowhere! Like trying to catch a greased pig! You can outlaw a currency, but it will still have many uses if so, and that many only further demand in some regards.
And the USD definitely has to inflate to survive...which means that one of it's fundamental, inherent properties is that of "losing value"....not a good property to have when your sole job is to be a "container of value"....the USD does a horrible job of containing value. A container with a bunch of holes in it!

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