Here is a chart of transaction volume on several of the major crypto currencies...
https://bitinfocharts.com/comparison/transactions-btc-eth-bc...
Anyone see a trend...
Bitcoin Bubble Makes Dot-Com Look Rational
31–40 of 138 posts
Re: Bitcoin Bubble Makes Dot-Com Look Rational
#32Was the collapse of the German Deutsche Mark, the Zimbabwean Dollar, the Venezuelan Bollivar a bubble too? Good money drives bad money out, so I’d argue that no, Bitcoin’s price is not a bubble. Clearly there’s no price that bitcoin holders will sell at so they’re clearly exiting the USD ecosystem. I think the logical fallacy that’s occuring right now with critics of bitcoin’s price rise is that all bubbles has drama…
Bitcoin has scarcity, but so does Litecoin or Bitcoin Cash What makes Bitcoin special?
Network effects. It's the reserve currency of the entire crypto ecosystem.
Re: Bitcoin Bubble Makes Dot-Com Look Rational
#33The idea is great, but in reality these stupid crypto coins are practically useless and wasting HUGE amounts of resources. Bitcoin is said to be consuming as much power a some countries, and still rising fast, while the amount of transactions is comically low compared to the power consumption. Bitcoin in its current state can never be a thing to actually buy something with. I don't see any other long-term use for bit…
It's (looking like it's turning out to become) digital gold. When is the last time you bought a family dinner with gold?
I wonder how the environmental impact of mining gold compares to mining bitcoin?
Re: Bitcoin Bubble Makes Dot-Com Look Rational
#34Earlier quoted context omitted.
how do you know?
How do I know what? That it will crash and burn? Because it is a useless resource. It is only worth something because other people say it is worth something, and unlike paper money it is not backed by anything significant. It is a bubble of hot air, ready to pop at any time. It might continue rising for years or decades. But it is not usable as a real currency, so it will always remain a useless waste of resources. T…
What do you mean by 'anything significant'? Paper money is not backed by anything material. Rather, it is backed by institutions (central banks, governments, banks) and individuals using them. To me, that's pretty much the same as cryptocurrencies.
Re: Bitcoin Bubble Makes Dot-Com Look Rational
#35The idea is great, but in reality these stupid crypto coins are practically useless and wasting HUGE amounts of resources. Bitcoin is said to be consuming as much power a some countries, and still rising fast, while the amount of transactions is comically low compared to the power consumption. Bitcoin in its current state can never be a thing to actually buy something with. I don't see any other long-term use for bit…
It's (looking like it's turning out to become) digital gold. When is the last time you bought a family dinner with gold?
Maybe it's digital gold.
Maybe when the price stops rising no one feels any desire to buy it anymore and people are left holding worthless numbers.
Re: Bitcoin Bubble Makes Dot-Com Look Rational
#36Was the collapse of the German Deutsche Mark, the Zimbabwean Dollar, the Venezuelan Bollivar a bubble too? Good money drives bad money out, so I’d argue that no, Bitcoin’s price is not a bubble. Clearly there’s no price that bitcoin holders will sell at so they’re clearly exiting the USD ecosystem. I think the logical fallacy that’s occuring right now with critics of bitcoin’s price rise is that all bubbles has drama…
Bitcoin on the main chain has scarcity.
Anyone can fork the codebase, or even the blockchain, or one of the many other blockchains out there. There is absolutely nothing provable about BTC as a store of wealth.
The amount of leaves produced by the cherry tree in my back garden during its expected lifetime is limited too, that doesn't make them a provable store of wealth.
Re: Bitcoin Bubble Makes Dot-Com Look Rational
#37Earlier quoted context omitted.
Bitcoin has scarcity, but so does Litecoin or Bitcoin Cash What makes Bitcoin special?
Network effect - same thing for Facebook. The more valuable bitcoin is the more secure and more resilient. Thus purely by price appreciation bitcoin is doing hiperbitcoinization - once people realize that fundamental value of fiat currency is a myth, more fiat currencies will collapse
This is exactly right.
If you create a company and copy Facebook's code, the resulting company will not be worth as much as Facebook.
Why? Because much of Facebooks' valuation derives from its network.
Bitcoin is the same.
Re: Bitcoin Bubble Makes Dot-Com Look Rational
#38I don't get this. The dot-com bubble ran up to $6.7tn in market cap, in 2000, before crashing down to $1.7tn.
The crypto space, which seems to be shaping into an entirely new asset class, has a $300bn valuation. That's less than the value of Facebook.
The only reason why people are shouting bubble is because people were able to get in from the start, when these coins were 10 cents on the dollar. But when Facebook IPOed after 10ish years, it had a valuation of $50bn. But early angel investors also got in at 10 cents on the dollar.
It could eventually become a bubble, but I don't think think we're even nearly there yet.
Re: Bitcoin Bubble Makes Dot-Com Look Rational
#39Earlier quoted context omitted.
It's (looking like it's turning out to become) digital gold. When is the last time you bought a family dinner with gold?
Maybe it's digital gold. Maybe when the price stops rising no one feels any desire to buy it anymore and people are left holding worthless numbers.
Yes, maybe it will become digital gold. If it were true digital gold, it would have a similar valuation closer to gold, i.e. $8tn (a 60 fold increase of its current value).