This was a quote by Malcolm Macleod when talking about Bitcoin and the possibility of it being in a bubble.
He went on to say this:
"I think there is a high chance that Bitcoin is in a bubble of some kind but I hope to be wrong."
As Bitcoin smashed through the $2000 USD barrier this morning, the "bubble talk" has only intensified.
Bubbles are interesting for several reasons...
The biggest thing I remember about bubbles is that most of the time when you are in a bubble, most people don't see it. If everyone is calling for something to be in a bubble, it likely hasn't reached bubble territory yet.
If you recall, back in 2011 many experts were saying that Bitcoin was in a bubble and that it was about to crash. Well, it did eventually crash, but they were 2 years too early on that call. Bitcoin prices continued to climb and climb for the next 2 years before it's eventual 80% correction.
But hey, even a broken clock is right two times per day, right?
I could see that kind of price action repeated again here.
There is just too much money coming in from too many places right now for the price to crash any time soon.
Will there be an eventual nasty correction?
Of course, but I am not so sure we are as close to that time as many bears would have you believe. I see a long runway still ahead for Bitcoin, and cryptocurrency in general, with any dips and corrections being bought along the way.
What do you guys think?
Resources and Pictures:
https://cointelegraph.com/news/bitcoin-price-breached-2000-pundits-coin-flip-what-comes-next
I am the: @voiceofreason
This entire industry is in a period of continuous bubbles. Will you be able to perdict the next "all time crazy high" - no, I don't think so. But there will certainly be factors like media attention (discussed in depth in the post below) that will be telling.
https://steemit.com/bitcoin/@kyle.anderson/what-it-is-like-riding-bitcoin-bubbles-an-adventure-through-the-present-cryptocurrency-explosion
Yep. When my grandparents start talking about buying bitcoin I think it might be time to sell ;)
Doubt my grandparents will ever understand bitcoin. They're still figuring out Skype...
Indeed. I don't believe we are in a bubble. Maybe when we hit a trillion in market cap. But now? Absolutely not.
Thanks for the refreshing comment :)
Makes me want to go swimming :)
1 trillion, I like that! Nice gif by the way!
As long as the dollar remains weak and rumors of war drums keep beating its hard to see why not go to cryptocurtience since it has a true price mechanism.
True. Can't be manipulated by Governments... well at least not in the same way that fiat can.