Is Bitcoin (crypto) a Bubble? Here are the accurate arguments from each camp, imo.

in #bitcoin7 years ago

tldr: no

Here are the accurate arguments for each camp:

Crypto Currencies are a Bubble

  • Compared to normal businesses, many crypto currency projects have outrageously high valuations, especially considering how many of them are still at the idea or prototype stage.
  • Many crypto investors have only seen huge success and are excessively exuberant.
  • Many crypto investors make investments with little or no serious research.
  • The deluge of money has attracted unsavory entrepreneurs.

Crypto Currencies are not a Bubble

  • Crypto currencies are a new technology that allow people to do things which were previously impossible, namely structure incentives with strangers in a way that does not rely on trust.
  • Crypto currencies solve real, tangible, important problems.
  • Normal people have access to investment opportunities like never before. The most charitable explanation you can give to the ridiculously high valuations of idea-stage projects is that people are willing to risk failure and fraud to have a stake in world-changing research.
  • The values of crypto currencies will not go to zero.