So, is Bitcoin a bubble?
The picture above shows 4 telling graphs, except that only 2 are visible above. See https://www.dhirubhai.net/feed/update/urn:li:activity:6357407909852303360/ for all 4 graphs. Check out paper "On Origins of Bubbles" https://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=2224789.
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7 年It is absolutely bubble because the exponential rise has been driven by perception and hype, most likely unsubstantiated .And behavioristically an technically it is definitely bubble.
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7 年Now with regards to there being a bubble for Bitcoin, I would say the answer here is yes. Just like the saying goes, "What goes up must come down." And Bitcoin has been driven so artificially high that it's bound to come crashing down. There's also been the introduction of other digital monies that are getting attention and seen as potentially more lucrative on the upside. And there's nothing to modify Bitcoin to make it more attractive because it is what it is. So there's no upgrade or feature that could be added to put Bitcoin ahead of the others. Lastly, the South Korean government has been concerned about Bitcoin scams in the country and says a ban on it may happen, https://www.cbsnews.com/news/bitcoin-prices-plunge-as-south-korea-says-ban-still-an-option/. So there are lots of concerns about whether Bitcoin has reach an inflated peak that's about to burst. And whether it'll be banned in some places and/or lose out to other crypto up and comers.
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7 年Is there any intrinsic value to Bitcoin or any other digital currency? I would say the answer is no. And there is definitely nothing backing it at all, tangible or intangible. So unlike the US Dollar and other world currencies, they have the underlying faith and reputation of the country's government behind it. Thus, the US Dollar has value from our country's government being relatively stable vs others around the globe. As for costs to produce, that comes from the technology, meaning the coding to create that crytpcurrency. Mining isn't creating the digital money. Instead, it's distributing and collecting it. So beyond a software program that is the digital money, there's nothing else. And does that coding have value, in and of itself, no.
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7 年its a fad. good luck to anyone that trades it and makes money. there are many punters out there that don't want to miss out. the concept is great in theory but is flawed in many ways.