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%
Deal Addict
Jun 27, 2007
3249 posts
533 upvotes
UK gov will enforce AML laws on bitcoin. It's a start...
Now, bitcoin quotes as a pair - in USD, EUR, etc. Imagine if there are laws that prevent exchanges to convert bitcoin into fiat currency. It's dead then, because there won't be another asset with similar valuation. Think about it, exchanging bitcoin for 10 iPhone X. The latter is physical good that has useful purpose.

Bitcoin is liquidity bubble fueled by world governments money printing policies. Quantitative easing at its best...
After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: it never was my thinking that made the big money for me. It was always my sitting. Got that? My sitting tight!
Sr. Member
Dec 12, 2009
526 posts
25 upvotes
xgbsSS wrote:
Dec 6th, 2017 3:10 pm
YES, they were available. The problem is with shorting, shares can also become unavailable during a short.



The problem with bitcoin is that it isn't unique in anyway whatsoever to many other blockchain currencies out there. These sudden increases in value decreases the utility of bitcoin in general as a currency as it makes it harder for people to value the currency. So when that happens, people will utilize other currencies. Even if bitcoins are limited in it's issuance, doesn't mean that an identical in structure blockchain currency can also be issued. This in itself increases the volume of blockchain currency in general, undermining the value of Bitcoins. Bitcoins are not unique enough to maintain it's value. Hence why it cannot be considered equivalent to most commodities or currencies.
Share become unavailable in shorting? That could be just a bad brokerage implementation.


As far as many blockchains go, that is fine. It doesn't have to be bitcoin that prevails ( it looks like it will though) the value is purely derived from people's willingness to use it. Like i said i can fork bitcoin's code tomorrow, but it offers 0 significant advantage over bitcoin and it would have a dev team of myself... no one would use that garbage vs bitcoin where millions of people are already on the network. Same reasoning as there were many implementations of the internet, however, the most dominant is the current version we are using which tcpip layered with http.
Member
Apr 22, 2014
462 posts
212 upvotes
Edmonton, AB
xuemike wrote:
Dec 6th, 2017 3:24 pm
Share become unavailable in shorting? That could be just a bad brokerage implementation.
You should really drop it. This happens all the time. Especially with harder to borrow stocks. Any short seller would be well aware of that.
Deal Addict
May 31, 2007
4446 posts
1546 upvotes
dlhunter wrote:
Dec 6th, 2017 3:18 pm
UK gov will enforce AML laws on bitcoin. It's a start...
Now, bitcoin quotes as a pair - in USD, EUR, etc. Imagine if there are laws that prevent exchanges to convert bitcoin into fiat currency. It's dead then, because there won't be another asset with similar valuation. Think about it, exchanging bitcoin for 10 iPhone X. The latter is physical good that has useful purpose.

Bitcoin is liquidity bubble fueled by world governments money printing policies. Quantitative easing at its best...
An argument I see frequently by the Bitcoin supports. But if there was no gov or central bank action would the economy almost collapse or be in long depression?

This is the reason why I don't think The public should be given the choice to bypass this stuff.
Jr. Member
Nov 4, 2012
155 posts
10 upvotes
Burnaby
Whoever doesn't buy crypto currency is really a dumb person.
Deal Expert
User avatar
Sep 19, 2004
20498 posts
3167 upvotes
Waterloo
craigslist123 wrote:
Dec 6th, 2017 7:05 pm
Whoever doesn't buy crypto currency is really a dumb person.
Warren Buffett is dumb then

Just like people not buying weed stocks?


Someone made this. If you didn't know this is Bitcoin, what could it be? Limited Supply and Unlimited demand?
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Sr. Member
Dec 23, 2010
686 posts
243 upvotes
Ottawa
jerryhung wrote:
Dec 6th, 2017 8:33 pm
Warren Buffett is dumb then

Just like people not buying weed stocks?


Someone made this. If you didn't know this is Bitcoin, what could it be? Limited Supply and Unlimited demand?
Image
You know not all cryptocurrencies are a bubble. I don't think Ethereum is a bubble personally.
Newbie
Feb 11, 2017
10 posts
I would argue tha cryptocurrencies have reached the size and momentum to where what people would consider a real "crash" would be of the "black swan" type event. The fact that so many people are calling out a crash and or "bubble" keeps me skeptical that we anywhere near that point.

If we're comparing this to some sort of crash similar to the dotcom bubble, you'll see that even after the peak in 2000, tech stocks "crashed" back to levels that the early crash callers still called "irrational exuberance". Post crash, tech stocks steadily continued higher.

Image

On the note of Warren Buffet not investing in cryptocurrencies, he also did not invest in tech stocks during the dotcom bubble. His performance also suffered much more than most others that did partake in the ridiculous bubble. By the end of it all, the bubble out performed.

Image

In short, both profit takers and (early) long term holders will be very much rewarded - bubble or not. The real question is: should we be profit takers, or early long term holders?

In my opinion, this bubble will pop.. I doubt any time soon.
Newbie
Jul 26, 2011
64 posts
32 upvotes
Toronto
A dumb question probably: what is the brokerage or site or platform to use to buy bitcoin?
Thanks in advance.
Sr. Member
Dec 12, 2009
526 posts
25 upvotes
philland wrote:
Dec 6th, 2017 3:27 pm
You should really drop it. This happens all the time. Especially with harder to borrow stocks. Any short seller would be well aware of that.
Look at the CME futures, they do not have underlying asset, it's a buyer and seller market. You can definitely bet against something without the underlying asset, simply put there is someone on the other side betting against you. So no borrowing necessary
[OP]
Deal Addict
Jun 6, 2013
2213 posts
1595 upvotes
Toronto
This is crazy, bitcoin is about to hit $20K USD.

https://www.cryptocoinsnews.com/bitcoin-price/

this is insane. now a 50% crash will bring bitcoin to $10k USD.

there goes my RFD reputation.
xuemike wrote:
Dec 7th, 2017 9:59 am
Look at the CME futures, they do not have underlying asset, it's a buyer and seller market. You can definitely bet against something without the underlying asset, simply put there is someone on the other side betting against you. So no borrowing necessary
but when you short something, you have to maintain a margin account...it will bankrupt you (margin calls) if it goes up significantly.
It's always good to be underestimated.---Donald Trump

I never downvote anyone and I try to help everyone.
Member
Apr 22, 2014
462 posts
212 upvotes
Edmonton, AB
xuemike wrote:
Dec 7th, 2017 9:59 am
Look at the CME futures, they do not have underlying asset, it's a buyer and seller market. You can definitely bet against something without the underlying asset, simply put there is someone on the other side betting against you. So no borrowing necessary
I love when someone quotes and replies to me with a completely irrelevant thought that has nothing to do with what I said.
Sr. Member
Dec 12, 2009
526 posts
25 upvotes
philland wrote:
Dec 7th, 2017 12:20 pm
I love when someone quotes and replies to me with a completely irrelevant thought that has nothing to do with what I said.
You were clearly chiming in with the talks quoting me with someone else's talks, so I assume you knew the context.
Member
Apr 22, 2014
462 posts
212 upvotes
Edmonton, AB
xuemike wrote:
Dec 7th, 2017 12:32 pm
You were clearly chiming in with the talks quoting me with someone else's talks, so I assume you knew the context.
And someone shorting a stock and getting bought in has to do with futures, how?
Sr. Member
Dec 12, 2009
526 posts
25 upvotes
philland wrote:
Dec 7th, 2017 12:45 pm
And someone shorting a stock and getting bought in has to do with futures, how?

You can sell a bitcoins futures contract, the intention here is to bet against it.

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