I will answer it once and for all.......
Is bitcoin in a bubble? That is the question on everyone's mind. The talking heads on CNBC and other business channels are talking about it. They are quick to point out how this is akin to the tech bubble in the NASDAQ, commonly known as "the dot com boom". Here is a graphical/pictorial representation to show the similarities:
I want to thank Macrobond Financial for the picture and the "analysis". But are they right?
For those who remember that period in the stock market, what sticks out to you most? Do you recall? And what is different about how things are now? In that time period, everyone was talking about stocks. Anything that was tied to the internet was an instant buy. People were using their credit cards to buy stocks knowing that the appreciation outpaced the interest rates. Everyone yearned to be a trader and wanted in the game. What did the market do was the most commonly asked question each day? 20 somethings who headed up anything that had .com in the name were instant rock stars. Most of these companies had no earnings, no money, and no business plan. It did not mater. Buy and get rich was all that mattered.
Does any of this ring a bell? If you were around in that time, it should take you back. Compare that to today and what is going on in cryptocurrencies. Yes we are up huge percentages. It is also true that many people are jumping into this market. Wall Street and the business channels are starting to wake up to what is going on here. That does not matter nor is it reflective of a bubble.
Here is the real test. Do you want to know if this is a bubble or not? There is an easy way to find out. Simply ask your barber about cryptocurrencies. Or your mother in law. Or the bartender at the local pub. Or the cab driver. Or the guy working at Home Depot. Or your dentist. Or your auto mechanic.
If these people know about and are investing in cryptocurrencies, then you are in a bubble.
Since my survey of those types of people is that they have no clue about this, then I will tell you there is NO BUBBLE. In fact. not only are we not to bubbleland, we are only in the early stages of the run up. In the dotcom era, Wall Street knew about and was touting those stocks; Wall Street is only figuring out how to get into this game. That is the major difference.
And the second your auto mechanic utters the word bitcoin or cryptocurrency, put your stop loss in.
If you liked this post, please upvote the heck out of it so others can get the same pleasure. Also, please resteem it since I am sure your followers do not have enough to read. Thank you for your time.
So true, i work in IT at a swiss university, and even there, I am about the only one that has invested some money in that so called 'bubble' ....
Followed you...I like hearing IT viewpoint on things.
That makes sense....outside of people I brought into the mix, I dont know anyone who is invested in cryptocurrency. In fact, so few are even aware of what it is.
Yeah most of the Swiss people just think that bitcoin is for illegal stuff. :)
No more of a bubble than any other stock, bond, or rally. It is here to stay and the haters who missed out will do anything to bring it down. But they cannot stop the people. Bitcoin is global economic freedom.
I agree 1000%. I would say the present stock market is more of a bubble than this (although I think the S&P is more overvalued than a bubble).
This is not some passing whim....cryptocurrency is a major shift in how transactions are done and, yes, once people find out about the many different things that can be done on the blockchain to free humanity, they will thirst for more.
Bubbles aren't determined by whether or not it'll stick around. Dot-com sites are still around and many are higher than the bubble. That doesn't negate too much hype and rapid parabolic growths aren't sustainable.
I like this post, you have my vote, by the way,
thank you for stopping by and voting on one of my post
really appreciate it.I started following you @mannyfig1956
Thank you @mannyfig1956
I appreciate what you post and already was following you. Together, we can make a difference.
I look forward to seeing more of your stuff...it is good.
No. Next question...
YEP! You know we have the same thoughts on this :)
The more I read about the dot-com bubble the more I see how practically identically parallel the scenario is.
We both are long term bullish, but almost market realists and this is definitely a bubble.
Nice post!
The difference is you see it as a bubble now, I believe it will be one down the road. With all the money that is about to enter, the frenzy will begin.
When Aunt Betty is talking about cryptocurrencies at her bridge club, time to pull the plug...it is going to collapse.
We arent at that point yet.
Crypto's go through many many many bubbles. I have friends that are totally into them yet have NO knowledge of how they work or anything....and yet most of my co-workers in software have never heard of them.
Just becaues we're in a bubble now doesn't mean it can't turn into a bigger bubble. Because blockchains and cryptos haven't become mainstream yet, I do believe this is a smaller bubble before the inevitable LARGER bubble happens once it does get utilized. Just like the internet. People were speculating on all these companies because 15% of homes had internet. It's all speculation and greed based. It'll pop for now, then get utilized later when bigger blockchain projects come about like EOS (which I LOOOOOVE btw, esp the price), then there will be another speculation bubble.
What interesting you about EOS?
Share the 411 on it from your perspective...I might have to look into it.
I'm going to make a post on it here before too long. One of the things I love about it is it's getting cheaper.
Bit caveat is if they can deliver all the things they claim. Even if they deliver 1/2 and upgrade later I'll still be amazed and love it. I think it's a great team behind it. With the projects Dan has built so far, I know he's learned a TON about how to make this one better from his prior blockchain projects. He analyzes the negatives of ETH and works on them. I was in love with ETH as soon as I learned what it was. I think horizontal and vertical scaling capabilities is awesome. I love that it's not something "mined". Sure, it's still an ERC20 token, but that's only because there's no EOS blockchain yet. I think having an "operating system" is awesome. ETH now is like basically a coding language that's saying here's out thing, learn it and use it to make your own shit. EOS is saying here's all of our tools, you focus on the projects you want.
They claim more transactions than VISA and facebook which is huge.
Again, if they can deliver on a lot of these things I'll be happy.....even half. There's over a year left until launch and there's a lot more tokens to come out so I am hoping that no one finds out and the supply drives these lower and lower and lower. I'll load up. Total supply (of tokens) is 1 billion but they keep 100 mil. So, imagine if EOS gets to same market cap as eth and their value is $30+. I think this is an awesome blockchain project to actually speculate about.
Are they US are Chinese based?
Great. Thanks for sharing. I'm starting to follow you.
i agree with your logic 100%
Thank you cryptoknight...I gave you a follow.
Your right on point my friend. Just had this convo yesterday with someone. I mean lets face it... Even if it is a bubble, Iv made a ton of money, and have a brain cell that allows me to stop loss. Even if i lost every penny i have invested right now, i still won... People crack me up.
Nice post ; helped to sort out some questions running on my mind :)
you're making steemit a great community with your content taskmaster4450! keep it up!
Thank you @steemking777. I appreciate the kind words and that you like what I post.
It is good to get positive feedback.