Serious post: Initially I thought that Bitcoin was absolutely in a bubble and will crash. However, after further research, my opinion has changed. 1) Why can't the value keep going up? Gold does. Only difference is the primary risk which is getting banned by governments or a cyberhack. This is possible but unlikely, at least in the near future. 2) The fact that EVERYONE is warning that a crash is imminent is a bullish sign to me. Maybe it's price will come down, but why does it have to be a bubble, pop and then go to $0? Why can't it be like the housing market which ebbs and flows? If you have strong, decently-informed opinions on this, please weigh in.
Times change. Bitcoin is the next big thing in my opinion.
Govt needs their tax money. If crypto gets around govt. payday in any way, its fucked.
At worst, don't you think they'd just attempt to regulate it / tax it like they do gold? If this happens, I can see the value of BTC getting dinged but by no means cause it to go to $0.
Ah so the main competition will be credit card companies?
What stops from anyone to create a new crypto currency?
Nothing. That's why there are already 1300 of them and growing every day. It's hillarious.
Imagine store fronts with 1300 different payment accepted signs covering the walls, doors and countertops.
I'll tell you why gold hold it's value but bitcoin doesn't. Gold is the reserve currency of many if not most nations, backed by military power. The last time another precious metal was used was silver, 100+ years ago. The only reason why USD still hold value is because US forced USD as the oil trade currency, and therefore most commodity trade across the world, with the might of US military power. Gaddafi tried to trade in another currency called gold dinar, look what happened to him. What is bitcoin backed by? Unless the CIA or the US government was backing it, it remains a speculation.
1. Btc is not like gold. The difference is that gold has “intrinsic” value in that it has value aside from being a direct store of value for another currency. Gold has aesthetic value, cultural and historical significance, industrial applications, etc. all of that exists regardless of the exchange rate. The vast majority of people buying bitcoin are doing it solely as an exchange to USD. Sure some people are in it as an anonymous currency, but I don’t think that’s causing the extreme bull market. If the price of gold drops by 30% overnight, people won’t be raiding their mom’s jewelry cabinet to quickly sell off their gold. The same couldn’t possibly be said for BTC because it’s just a proxy for USD in most cases. 2. I agree it might ebb and flow but it’s hard to say. I agree less with the notion that everyone believing that a universal crash mentality = bullish. For one, *everyone* isn’t saying it’s going to crash. A group of various investors are who show up in the news. If everyone thought it would crash, there wouldn’t be an enormous rise in price. The ultimate reason why I think it’s a speculative bubble is because there isn’t intrinsic value yet. If/when btc gets paid as salary, accepted at most institutions, etc. in other words, once people accept it as valuable *independent* of a conversion to USD, then it could be fine. It’s a question of if that’s ever going to happen
Government can ban gold too if they want to 😂 It’s really not a strong argument against bitcoin.
Every single government banning gold at the same time? It happened before though, silver was dropped from currency reserve about 100 years ago from almost all nations on earth.
The reasons for me is that Bitcoin is based on a speculative feature. What does it actually provide, right now? What value has been added this year to justify 10x? What has been added in two years to justify 50x? 1.2millionX in 7 years? There's nothing but speculation propping it up. Yes, it democratizes wealth and it has a very interesting future. But what does it do right now? People driving up the price don't even know. People are just trying to get their payday on the newest buzzword. You have to trade it then convert it immediately because of how volatile it is, whenever you buy something with it. This incurs more fees than just using a CC. So why should merchants accept it? I'm jealous as hell I didn't get into it and I respect the people who were brave enough to do so.
How many of you on here lived through people quitting thier jobs to be day traders in 2000 because stocl picking was easy because everything just kept going up.
It's not even that. It's just dump it into any crypto and enjoy 10-50x gains. You don't even day trade at this point.
Pretty easy to day trade bitcoin as it swings a great deal through out the day compared to stocks.
I think it's a bubble because so many uninformed investors who don't know anything about crypto are pouring money in because the price keeps going up. That's usually how I spot bubbles and I haven't been burned by it yet
When was the last time you saw gold shoot up 1000% or more in less than a year?
Your making decisions of past events or lack there of. Not everything has to flow and react like past events. This is something new. When you introduce something to a new environment it will grow like crazy till either A it plateaus or B something stops it
Well, I'm not the one comparing gold to bitcoin, the op is. Because you can't. That's my point.