So I posted this concept on Quora a while ago and received some positive feedback. Thought I'd relay it here. Many great minds are posting that Bitcoin (and crypto in general) is a bubble. These include some well known investors like Warren Buffet. I think the problem we have with the "bubble" concept is that it means there is nothing to hold up the high prices being asked for currency.
I think the problem is that these investors are looking at Bitcoin as a typical asset. One that has a base value, people invest because they think the base value is going to increase. However, Bitcoin essentially has "no" base value. So there is nothing to inflate a bubble around. My proposal is that Bitcoin, and crypto currency in general are not in a bubble. Rather, regular currency as a whole, no matter what country is in a deflationary spiral. You can see this with the massive $ increase in traditional stocks, property and physical assets in the world. There are many reasons why regular currency can be deflating (lack in trust of some 3rd world countries, printing money, recalling money, etc...). People in the know are flocking to real, and virtual assets because they've realized that cash is no longer the secure place it once was.
Based on this I think it is incorrect for traditional investors to say that Bitcoin is a bubble. Rather they should see that the world is transitioning to crypto currency(s) since it's a more flexible, and reliable asset exchange mechanism.
If this is true then we will continue to see a massive shift of monetary wealth to Bitcoin and crypto currency as a whole. Bitcoin has gone up by 100x in the last 2 years to ~100B. It is not inconceivable that it will go up by another 10x to 1 trillion or beyond. It's going to be a fun transition. Likely not a bubble.
Congratulations @achillez! You have completed some achievement on Steemit and have been rewarded with new badge(s) :
Click on any badge to view your own Board of Honor on SteemitBoard.
For more information about SteemitBoard, click here
If you no longer want to receive notifications, reply to this comment with the word
STOP