Who could have expected 4% of economists to be holding bitcoin already?
Is Bitcoin a Bubble? Economists Say ‘Yes’
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Re: Is Bitcoin a Bubble? Economists Say ‘Yes’
#12In the end Bitcoin is so similar to Gold. It is a means of storing wealth and is valued on a shared belief of finite quantities and that it is an effective/secure means of storing wealth. It is hard for me to call a shared belief a bubble, because there is a clear understanding I think now that there is no underlying fundamental asset value.
I presume the implication of calling it a bubble is that it will "burst".
Re: Is Bitcoin a Bubble? Economists Say ‘Yes’
#13IMO, bitcoin is a commodity money, and history has moved on from those a long time ago. At most treat it like stock, and not as if it were money.
Re: Is Bitcoin a Bubble? Economists Say ‘Yes’
#14In the end Bitcoin is so similar to Gold. It is a means of storing wealth and is valued on a shared belief of finite quantities and that it is an effective/secure means of storing wealth. It is hard for me to call a shared belief a bubble, because there is a clear understanding I think now that there is no underlying fundamental asset value.
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Re: Is Bitcoin a Bubble? Economists Say ‘Yes’
#15These statistics are as useful as the pre brexit and us presidency polls
a lot less useful tbh
Re: Is Bitcoin a Bubble? Economists Say ‘Yes’
#16The one thing they aren't accounting for is that there really hasn't been anything like bitcoin. In most bubbles, eventually the whales start selling which triggers an avalanche, however bitcoin is distributed enough that this might not happen. Too many different people are interested in it doing well now. E.g. rich people in 3rd world countries, boy are they pumped for bitcoin.
I've mentioned it before, and I was kinda laughed at but I legit believe that certain economic truth need to be reevaluated for software and crypto. You know how at tech companies, the economics are different from other companies? I can imagine the same being the case for crypto.
Re: Is Bitcoin a Bubble? Economists Say ‘Yes’
#17I'm committing the cardinal sin of commenting before I'm done with the article, but whenever this discussion comes up, I feel like asking: why not both? Could it be that Bitcoin is currently overvalued and in a "bubble", but it or something like it still may have huge value and utility in the long run? The idea that the Bitcoin bubble is something more like the Dot Com bubble than Tulipomania seems plausible to me.
Yes. Internet stocks were in a bubble in the late 90's. It burst but the Internet turned out just fine. The question is, when the crypto bubble bursts, will Bitcoin recover, or will it be something else?
Re: Is Bitcoin a Bubble? Economists Say ‘Yes’
#18Everyone that I've talked to seems to be aware of the (seemingly) inevitable price drop, but that doesn't seem to be stopping them from buying in. Most people just assume they'll be able to sell what they have when the price drops before all the 'dumb' people have a chance to do the same.
They just assume they'll be the lucky ones. I don't think everyone can be the lucky ones though.
I think after this all calms down and a reasonable price is reached it'll be a bit safer to use as an actual currency. Pretty sure we were all saying that when bitcoin was around $200 though so maybe it won't ever settle.
Re: Is Bitcoin a Bubble? Economists Say ‘Yes’
#19In the end Bitcoin is so similar to Gold. It is a means of storing wealth and is valued on a shared belief of finite quantities and that it is an effective/secure means of storing wealth. It is hard for me to call a shared belief a bubble, because there is a clear understanding I think now that there is no underlying fundamental asset value.
Gold has a floor value though, sure it has a value above that based on being used as a store of wealth but the whole thing is predicated on the fact that gold is actually useful and has thousands of years of human history of being valued.
Re: Is Bitcoin a Bubble? Economists Say ‘Yes’
#20I'm committing the cardinal sin of commenting before I'm done with the article, but whenever this discussion comes up, I feel like asking: why not both? Could it be that Bitcoin is currently overvalued and in a "bubble", but it or something like it still may have huge value and utility in the long run? The idea that the Bitcoin bubble is something more like the Dot Com bubble than Tulipomania seems plausible to me.
Tulipmania lasted 6 months. Bitcoin is now 8 years old.
Stop comparing Bitcoin to flowers. It's not even close to the same thing.