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RE: Are crypto assets like real estate? Is there a bubble?

in #ethereum8 years ago (edited)

This. Only a tiny percent of the public have any investment in the crypto economy - we are talking thousands among billions. There is volatility precisely because of the relatively small amount of value in the crypto economy. The first real bubble is still a couple years out, and will likely occur when the mainstream investor has fiat onramps available through conventional brokerages. What is happening now is just a tiny trickle of fiat squeezing through a very small valve and into the crypto economy, like the first trickle before a dam fails. When the dam bursts and fiat value can flow freely into crypto we will see a bubble no one can imagine. Let's not forget how little liquidity there is in most tokens, tokens which have international 24/7 trading exposure. $1M BTC could happen in a matter of weeks if the onramps can handle the throughput - it takes far less than a billion in fiat to increase the market value of BTC by a billion dollars. The last decade of central bank printing has created literally trillions in wealth that is sloshing around the world looking for return right now. If anyone can open the floodgates those trillions will pour into crypto.