Investing

Do you think that bitcoin is a bubble?

  • Last Updated:
  • Dec 13th, 2017 2:28 pm
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Poll: Will bitcoin crash?

  • Total votes: 192. You have voted on this poll.
No
 
61
32%
Yes, to less than $6000 USD
 
27
14%
Yes, to less than $4000 USD
 
15
8%
Yes, to less than $2000 USD
 
7
4%
Yes, to less than $1500 USD
 
2
1%
Yes, to less than $1000 USD
 
28
15%
Yes, to less than $500 USD
 
6
3%
Yes, to less than $100 USD
 
46
24%
Member
Jun 28, 2016
238 posts
118 upvotes
Bitcoin is very obviously showing bubblelike behaviour. Now, whether its a bubble like tulips or a bubble like the late 90s Nasdaq or a bubble like 2011 Bitcoin is an open question at this stage (ie. Is it a bubble where everyone who owns will end up with nothing or one backed by something valuable, just not quite as valuable as its current price would suggest). Price behaviour is one clue, but another is the media hype. I can't seem to spend five seconds on any site about investments or financial news without stumbling across a half dozen analysts who, despite knowing nothing about Bitcoin, are very eager to explain why it's a strong buy. My favourite one this morning was the guy who actually said that it's a bubble, but then comes out and suggests that everything in the market is a bubble, financial understanding doesn't matter, and the key is to learn "bubble trading," in order to not miss out.

That's not to say that Bitcoin won't double or triple again before crashing down 80 or 90% (it absolutely could) or that Bitcoins are going to become worthless (they may be the digital currency of the future, just as the Nasdaq was where the internet was being born). But, right now, Bitcoin is about as bubbly as bubbles can get.
Sr. Member
Jan 14, 2011
978 posts
229 upvotes
neverhaveiever wrote:
Dec 6th, 2017 7:26 am
What? Laws of gravity apply? Please don't give investing advice...like, ever.
muppetslayer wrote:
Dec 6th, 2017 8:15 am
Face With Tears Of Joy this forum cracks me up sometimes
I meant it metaphorically in that what goes up must come down especially given it's stark climb and dubious foundation. I believe it will fall like an anvil when govts. and banks take it seriously. Now, do you 2 have an opinion or are you just here to be A-holes?
Deal Addict
Jun 17, 2013
3989 posts
830 upvotes
Halifax
KMKM wrote:
Dec 6th, 2017 10:32 am
I meant it metaphorically in that what goes up must come down especially given it's stark climb and dubious foundation. I believe it will fall like an anvil when govts. and banks take it seriously. Now, do you 2 have an opinion or are you just here to be A-holes?
If you payed attention, I posted my opinion. But thanks for the childish namecalling.
Member
Oct 27, 2014
379 posts
273 upvotes
Toronto, ON
KMKM wrote:
Dec 6th, 2017 10:32 am
I meant it metaphorically in that what goes up must come down especially given it's stark climb and dubious foundation. I believe it will fall like an anvil when govts. and banks take it seriously. Now, do you 2 have an opinion or are you just here to be A-holes?
Yeah what goes up must come down? Just like dow jones in the past 100 years? the US GDP for the past 300 years? the world economy since the beginning of human civilization? This is the first time i heard about rule of gravity in economics and finance.
[OP]
Deal Addict
Jun 6, 2013
2213 posts
1595 upvotes
Toronto
muppetslayer wrote:
Dec 6th, 2017 10:51 am
Yeah what goes up must come down? Just like dow jones in the past 100 years? the US GDP for the past 300 years? the world economy since the beginning of human civilization? This is the first time i heard about rule of gravity in economics and finance.
I agree with you but the bolded part is technically true.
It's always good to be underestimated.---Donald Trump

I never downvote anyone and I try to help everyone.
Sr. Member
Dec 23, 2010
686 posts
243 upvotes
Ottawa
Bitcoin is a guaranteed bubble. However I don't think it will go to $0... It will likely suffer the same fate as companies like Cisco did during the .com bubble.
[OP]
Deal Addict
Jun 6, 2013
2213 posts
1595 upvotes
Toronto
Applesmack wrote:
Dec 6th, 2017 11:56 am
Bitcoin is a guaranteed bubble. However I don't think it will go to $0... It will likely suffer the same fate as companies like Cisco did during the .com bubble.
you mean bitcoin will be $6500 USD (50% of the all time high)? Winking Face
https://finance.google.ca/finance?q=Cisco wrote:Cisco's all time high was roughly $80 and now it is around $40.
It's always good to be underestimated.---Donald Trump

I never downvote anyone and I try to help everyone.
Sr. Member
Dec 23, 2010
686 posts
243 upvotes
Ottawa
Glancealot wrote:
Dec 6th, 2017 12:01 pm
you mean bitcoin will be $6500 USD (50% of the all time high)? Winking Face
It was $11 after the collapse of the .com bubble... Some companies like Nortel hit $0 and others like Ciena went from $1000 to $25. I'm just drawing parallels to the internet. Everyone invested in internet companies because that was the 'future' and they were completely right... Internet is the future. But they grossly overvalued it. Same fate will happen to bitcoin.
Sr. Member
Dec 12, 2009
526 posts
25 upvotes
For those who think it is a bubble, then I urge you sign up for one of these exchanges and short sell it. If you believe it then why not make some money?
Sr. Member
Dec 23, 2010
686 posts
243 upvotes
Ottawa
xuemike wrote:
Dec 6th, 2017 12:05 pm
For those who think it is a bubble, then I urge you sign up for one of these exchanges and short sell it. If you believe it then why not make some money?
Because nobody knows WHEN it will drop and to WHAT value it will drop too. I never short anything because it is more risky than just buying something else instead.
Sr. Member
Dec 23, 2010
686 posts
243 upvotes
Ottawa
Also I do think Bitcoin is a bubble but I don't think Ethereum is a bubble. I'm pretty impressed by Ethereum as a technology and I think it has intrinsic value (value of coin is directly related to value of work done by systems using the Ethereum VM) and large potential for growth as more problems get solved using the network.
Sr. Member
Dec 12, 2009
526 posts
25 upvotes
Applesmack wrote:
Dec 6th, 2017 12:09 pm
Because nobody knows WHEN it will drop and to WHAT value it will drop too. I never short anything because it is more risky than just buying something else instead.
Why would that matter if it is in a bubble? over the long term you make money, just as if you'd invest in dow or s&p over the long term. If you think it's a bubble by definition you'd think that the price is currently MUCH too high
Sr. Member
Dec 23, 2010
686 posts
243 upvotes
Ottawa
xuemike wrote:
Dec 6th, 2017 12:14 pm
Why would that matter if it is in a bubble? over the long term you make money, just as if you'd invest in dow or s&p over the long term. If you think it's a bubble by definition you'd think that the price is currently MUCH too high
Bitcoin has no intrinsic value. The entire value of the coin is speculation. There is no reason why the coin is worth $1, $100, $1000, $1 million or even $1 billion. If someone is willing to pay $1 million for bitcoin then it will be 'worth' that much. Thats all. Thus IMO it has no actual valuation. The buying craze can stop at any moment or can keep on going. Nobody knows. However eventually the buying craze WILL end and that is when this bubble will pop. I'm not interested in 'shorting' it because that is no different than buying into this bubble.
Sr. Member
Dec 12, 2009
526 posts
25 upvotes
Applesmack wrote:
Dec 6th, 2017 12:17 pm
Bitcoin has no intrinsic value. The entire value of the coin is speculation. There is no reason why the coin is worth $1, $100, $1000, $1 million or even $1 billion. If someone is willing to pay $1 million for bitcoin then it will be 'worth' that much. Thats all. Thus IMO it has no actual valuation. The buying craze can stop at any moment or can keep on going. Nobody knows.
Nothing has intrinsic value, absolutely everything's value is what someone else is willing to pay for it.
Sr. Member
Dec 23, 2010
686 posts
243 upvotes
Ottawa
xuemike wrote:
Dec 6th, 2017 12:19 pm
Nothing has intrinsic value, absolutely everything's value is what someone else is willing to pay for it.
Companies have intrinsic value due to the strength of their business.

Resources such as oil have intrinsic value due to societies need for them. Nobody has a NEED for bitcoin.

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