Charts don't lie: Bitcoin is in a bubble.
Is Bitcoin in a bubble?
You'll be the judge.
Bubble:
a thin sphere of liquid enclosing air or another gas.
a significant, usually rapid, increase in asset prices that is soon followed by a collapse in prices and typically arises from speculation or enthusiasm rather than intrinsic increases in value.
"Bitcoin is in a bubble" (smart money)
...
- a significant, usually rapid, increase in asset prices:
- typically arises from speculation or enthusiasm rather than intrinsic increases in value:
- soon followed by a collapse in prices:
Remember the first rule of profitable trading:
Buy low, sell high
Cheers.
Hedge funds and private equity are now pumping money into the situation. That’s never a good anybody remember Lehman Brothers?
I wouldn't be surprised to see dumps around the time CME's futures go live but again who knows, I've sold half my BTC, letting the rest ride in case it does something ridiculous
The tech bubble in the early 2000s was based on the invention of the internet. The companies listed went to a total market cap of 6 or 7 trillion on the Nasdaq before crashing.
Now we have Crypto which is a merging of internet and finance yet still at only 300 Billion market cap.
True, this could just be the very early onset of something much bigger, but proper risk management calls for caution :)
Also crypto is global and not just meaured on a US exchange. Its just the beginning IMO
It's possible, however it would take one major correction and ensuing negative media coverage to send Bitcoin in a bear trend, possibly on to another market cycle before we hit true mainstream
The fixed rules of physics combine to encourage exponential evolution so its all natural anyway. Ray Kurzweil knew it and thats why he's head of Google AI now.
Does he have an opinion on Bitcoin by any chance?
I saw a video he said he's not investing in it because something will take over :) Thats why I like the C20 token
C20 'aigh? never heard of it, will do some homework on it, btw thanks for taking the time to react to my rant/post mate, I am not usually so blunt in my analysis but I had to get this out of my chest :D
Bitcoin is certainly not a bubble. To say "it's gone up fast therefore it must be a bubble" is hugely simplistic. And wrong.
An asset bubble has characteristics. Bitcoin hardly meets any of these.
I actually posted about this today.
https://steemit.com/bitcoin/@farq/why-bitcoin-is-not-in-a-bubble
Interesting, I'll take a look at your article, to be fair I was trying to be controversial with this post, I am open to being called out on my reasoning
At what price did you get in @farq, if you don't mind me asking?
My first purchase was at around US$400 but I've purchased more since then at up to around $4000
Yep, I got in at $700 and I've sold half of it already, letting the rest ride. I've read your article btw, interesting take on the situation, especially the part regarding at the lending/borrowing environment surrounding the asset to evaluate the existence of a bubble.
@farq looks like Bitcoin was in a bubble after all ;)
not at all. Only to the fickle. My opinion hasn't changed one bit.
New ATH will come this year.
@farq Have you been holding through all of this?
Hey @farq, I was browsing through my old content and stumbled on your post... you still think Bitcoin wasn't in a bubble?
Yep.
...even though we've gone from 20k to $6k ?
the fact that we're even at $6k precludes it from being a bubble. A bubble means the asset is basically dead and worthless/close to $0.
We will still see a new ATH at some stage, if not this year, then next.
I don't think that's true at all mate, there's plenty of examples of bubbles where the market cap of a particular kind of asset deflated rapidly but didn't lose all of its value> real estate bubble, dot.com bubble, Bitcoin bubble of 2014. However when an asset goes parabolic, gets mainstream foaming at the mouth then lose 70% of its value, that to me is a bubble, maybe not in the grand scheme of things and future new highs might dwarf 20k one day but it's certainly exhibited a bubble behavior.
and all of those markets "bubbles" have surpassed their values prior to the bursting of the so called bubbles, which means they were not bubbles at all... (Though there are whole towns in the US that have been abandoned. )
you can say that to you is a bubble, but that doesn't make you correct.
The fact that you include 2014 bitcoin when it peaked at $1000.. 3 years years later it's appreciated 2500% before correcting again....
If history repeats itself, we'll get to $125k within another 3 years..
As I posted way back then - a "bubble" has a very specific definition - and it's often misused.
Just think about the term.. "Bubble". By it's very definition, when you a bubble bursts, there's nothing left...
We might have to agree to disagree then @farq, the way I see it is that Bitcoin has had several bubbles along the way, the primary long-term trend is certainly bullish but it's been overvalued a few times and each time was a bubble.
I don't think either of us is "correct" per se, we just have different criteria to evaluate what is a bubble and what is not.
Cheers