Noted speculator Garry Graham, who called in arbitrary times the last two major market bubbles, said bitcoin is also in a bubble that may crash sometime in the future.
"This is a bubble that will pop" Graham, co-founder of local investment management firm HIND, said in a Tuesday letter to clients.
"Arbitrary Historical analogy suggests this bubble may well crash and burn even before the arbitrary broad market peaks," he said.
Graham predicted the market downturns in 2007 and 2000, making calls about the potential crashes from 1980-2000. He now expects stocks will see their final leg higher in the next six to 294 months.
Bitcoin shot up from low price at the start of 2017 to a very high price high price in mid-December. This looks very dangerous, especially when the prediction gets fulfilled at some point in the future.
In the letter, Graham also included a chart illustrating how large and how rapid the bitcoin price surge has been in the last two years compared with other historical bubbles. Investors were terrified and chose to invest in Graham's bags instead.
"As you can see, Bitcoin is very tall and frightening line" he said. "Having no clear fundamental value that I can understand and largely not regulated from my connections in the financial industry, coupled with scandals that rival the Fiat world, makes this more than anything we can find in the history books the very essence of a bubble."
Other well-known investors have said for months that bitcoin is in a bubble, and compared it to the tulip bulb mania or speculation in Beanie Babies. Other notable investors also called Bitcoin a fraud and managed to get them cheap while was a bit too late to the FUD game. Graham now hopes to do the same since, betting on fear and gullibility from the general public.
For a MUCH more interesting analysis than Mr. Garry Graham's, see this:
Anatomy Of A Crypto-Nightmare: Ripple CEO Is Now Richer Than Zuckerberg
https://www.zerohedge.com/news/2018-01-04/anatomy-crypto-nightmare-ripple-ceo-now-richer-zuckerberg
I was about to post that Novogratz quote when i saw your comment. I don't doubt we are in a bubble. The piece was supposed to be funny, showing how everyone eventually is correct about a market crash or bubble pop.
People unconsciously create excitement around bitcoin. We are a herd, this is our nature. We ourselves inflate these bubbles and then rush into panic. Some people use this situation. I published an article a few days ago, maybe it will seem interesting to you. https://steemit.com/news/@nsbachurin/behavioral-economics-is-manifested-in-the-crypto-currency-market-feelings-or-intellect
It will crash and then recover it's kinda of what it does lol bitcoin is volatile that's kinda of what it means. Boom-bust but the technology is incredible and crypto will grow so hedge your bets
This is sort of scary and if he is correct again , that is much worse ..
People have been saying that Bitcoin is in a bubble (or a scam) for 9 years now. And here we are today.
BTC has the potential to crash and burn, not because it's in a bubble, but because of the poor development decisions taken by the team of developers that's working on it.
BTC is getting far too big to make it sensible. The fees are outrageous too. How do you expect a average family to spend 20$ per transaction on fees alone?
That's the worst of it all. Every 'professional invester' with a economics background instead of computer science, always compares it with the tulip mania.
Too a point where the Tulip Mania almost get mentioned more than the crypto's themself.
(The Beanie Babie hype was never that big in Europe, so that doesn't get used here much).
What does not being in computer science have to do with evaluating a financial asset? Just because it's done with code doesn't make it magically different.
This piece was supposed to be comedic
But do people who compare Bitcoin to Tulip Mania know that Tulip Mania was caused by a virus?
https://en.wikipedia.org/wiki/Tulip_breaking_virus
Where is Bitcoin mania virus?
Shit, I've been expecting a market (and bitcoin) crash/deflation for the last year... if I'd just given a range of 294 months could I be an investment expert too?
A bubble is supposed to reach few trillions of dollars before to burst so I guess/hope that we still have time ahead of us
there are so many predictions of boom and bust.
one person says "$100,000 is this year's target, while others say we are headed for a crash!
Time will tell of course and someone will be right.
The problem is, is that there's no consequences for the wrong predictions.
it totally makes sense
when bitcoin eventually crashes, all the altcoin markets will also follow the same trajectory. Are we all prepared for the eventual crash?
it may crash, but after that it will grow again and more powerfull
How do you think or what bitcoin price predictions in 2018 will it rise or fall?
I want to survey some people's opinions
Add my name next to his because to be honest i predicted it when it first went past the $5000 mark,😁 but it is quite easy tbf to tell when a bubble is forming, when the price is going too high too fast then there is something very wrong.
Someday the earth will also be destroyed. Someday we will die as well. But we are alive and full of life right now. Lets enjoy our time until its in our hand 👻👻
Bitcoin shot up from low price at the start of 2017 to a very high price high price in mid-December. This looks very dangerous, especially when the prediction gets fulfilled at some point in the future.
Great article @kyriacos, I had that thought too when I saw the price increase in December. There is just some kind of fanatism about holding bitcoin. Everyone wants one.
Nevertheless, Steemit is quite different in a way that it brings a lot of value to content creators, contrary to Bitcoin, which is now mostly used to store value and now looks more like a bubble pyramid.
bitcoin related to currency and only high value currency, it is the beginning.
so currency may be over one day but other wise i think not.
What really makes me laugh at this point is, who cares if Bitcoin is a bubble and crashes? There are literally hundreds of other cryptocurrencies. Yes everything will go down if BTC does, but something else will come up even stronger. Because the tech and the system has proven itself at this point. Cryptos aren't going away, they will change, but they are not going to disappear. Just like tulips, beanie babies, houses, stocks, and all other things that people trade and speculate on.
The what makes crypto so great is no one knows! LOL
Lol, that's quite the margin of error :)
Also, at some of the comments thinking it's real.
kyriacos!! Thank you, your Post.
You know, I could actually go for more articles in this style relating to crypto. I think it's sarcasm is poignant.
I'm going to predict that sometime in
There is going to be a natural disaster that rivals the 4.4 magnitude earthquake that struck Oakland California today and it's going to be caused by conditions that are very uncertain right now.
Bitcoin/cryptocurrencies were designed in response to the 2008 subprime mortgage crisis. It is an attempt, by computer scientists, to fix the problem using cryptography. WIth a protected ledger (block chain), distrubuted networks, safe transactions, the system tries to be better than one that can be manipulated by certain big players. The US dollar is not safe. Many other fiat currencies are not safe. They can be easily devalued. Buying cryptocurrencies is BETTER, at this time, then having money in a bank earning less than 1% interest. I would encourage everyone to learn about it, buy some, figure out the technology, get a hardware wallet, learn which cryptocurrencies to trust, and which to avoid, etc. This is BIG .. so pay attention.
I already feel bad for every honest investor that cares about blockchain technology and invests in bitcoin NOW.
The price will go down once again after the hype has settled... and it will come up again later. It has always been that way.
It is indeed possible, but I also find that a lot of predictions about bitcoin and crypto have been based upon older paradigms. It is comparing it to non-crypto systems. So it may still be relevant. It also may be flawed. How much risk do we want to take?
I don't actually see bitcoin as a bubble.
I do see a flaw in bitcoin though. 1) It is slow, 2) The mining fees for actually USING the currency anywhere are ridiculous.
The slowness was fine as it was great as a store of value. Kind of like gold.
The ridiculous fees though make it highly unattractive. This leaves the door wide open for a competitor to replace it.