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Bitcoin might be a bubble but not until supplies run short and the peak price range during the bubble is perceived to be around 25k-50k per coin so we have long way to go as of now. This might sound funny but when people said $2-3k three years ago skeptics said the same thing and now is reality.
Even if bitcoin is a bubble, the block chain technology is way superior and here to stay. Its called the new internet. Its extremely difficult to manipulate the system based on block chain so even though its adaptation in Western countries might be slow but its already proving to be a success in rest of the world. Any block chain based platform will be a success moving forward....
Or we're at the very beginning of mainstream adoption and it's no longer "fake computer money" that techies play with.
With all due respect, that's more wishful thinking than an actual explanation.
I mean, you could say the very same thing about the boom in the perceived value of beanie babies, Dutch tulip bulbs, pyramid schemes, circa 2006 Florida residential real estate, or gold in 2011.
Bitcoin IMHO has more going for it than the Dollar. There's a finite amount, it can't be printed out of thin air. It also has utility, Chase bank may be able to tell me I can't send a wire to a specific country or I can only send up to $50,000 in a wire, nobody can tell me where I can send Bitcoin or how much.
In the past you had to have a trusted third party in the middle of any transaction and those "trusted" third parties can refuse to host transactions for certain types of businesses ie certain industries like consulting, computer repair, vape, hoverboards, currency sales, etc are blackballed. Nobody can tell you what Bitcoin can or can't be used to pay for.
Look at Wikileaks, visa, MC, Paypal refused to accept donations for them, Bitcoin people can still send them money if they choose to.
There's the utility and value right there.
Look you like bitcoin but this post is hoovering around ridiculous. Bitcoin doesn't have more going for it than the USD. The actual utility, functionality, acceptability and stability of the USD are light years ahead of bitcoin and other block chain. The concept has legs and will continue to grow but let's no be absurd here
Bitcoin might be a bubble but not until supplies run short and the peak price range during the bubble is perceived to be around 25k-50k per coin so we have long way to go as of now. This might sound funny but when people said $2-3k three years ago skeptics said the same thing and now is reality.
Even if bitcoin is a bubble, the block chain technology is way superior and here to stay. Its called the new internet. Its extremely difficult to manipulate the system based on block chain so even though its adaptation in Western countries might be slow but its already proving to be a success in rest of the world. Any block chain based platform will be a success moving forward....
It costs more than $1,000+ to create 1 bitcoin today with electricity and computing cost. How much does it cost to create 1USD?
The cost of producing bitcoin increases as the value of bitcoin increases. The value of bitcoin is linked to number of users and number of transactions. Many ppl are using it as speculative investment but its not really that I think. As bitcoin network grows, value of bitcoin grows. As people move into bitcoin for payments and receipts they stop using US dollars, Euros etc which in long run devalues these currencies. So its more of a currency devaluation in long run than perhaps a bitcoin bubble and that should be a concern when there is even more mass adaptation of bitcoin. Its going to be at expense of Dollar, Euro etc. Hence emerging economies like China, India and even Aus are thinking about adapting, pegging or recognizing bitcoin as national currency. It might not happen right away but think about the long term potential...
An Eg. bitcoin transfer can take minutes, with low fees, without any permission and all formalities that banks require us to do, where as wire transfer to another country might take longer using a bank of conventional means and around $35 or so in charges. So bitcoin is the new money made by the ppl participating in the bitcoin community and increasing its intrinsic value....
BTC is up to almost $4,500 now. Ethereum up to almost $335, inching closer up to it's record high again, as well. I expect both of them to far surpass those highs in the next couple months. The support is there and cryptos are starting to be backed by even the largest banks, just like retail with Amazon, like it or not it's the way the world is moving. Either get in on the ground floor (while there still is one) or be left wishing you did. FYI I'm not completely invested in cryptos just because I want to be fairly well diversified and they are still volatile right now, but dropping a good 20% of my investments in there is I think a relatively safe play considering I'm looking at a roughly 5 year investment horizon.
BTC is up to almost $4,500 now. Ethereum up to almost $335, inching closer up to it's record high again, as well. I expect both of them to far surpass those highs in the next couple months. The support is there and cryptos are starting to be backed by even the largest banks, just like retail with Amazon, like it or not it's the way the world is moving. Either get in on the ground floor (while there still is one) or be left wishing you did. FYI I'm not completely invested in cryptos just because I want to be fairly well diversified and they are still volatile right now, but dropping a good 20% of my investments in there is I think a relatively safe play considering I'm looking at a roughly 5 year investment horizon.
Slowly but surely everyone who told me I was crazy, that it's fake money, they are all asking me for help setting up their wallets, asking me how to trade on Bittrex, etc.
I also ran across this tidbit today - Bitcoin has quadrupled in value this year (and the year isn't over yet).
If there's a finite supply, why is the value soaring? The only explanation I can think of (and I might be wrong) is that it's a bubble.
It is increasing because of the demand, because it is a finite supply. This is the basics of supply and demand.
Quote:
Originally Posted by TexasTony
It costs more than $1,000+ to create 1 bitcoin today with electricity and computing cost. How much does it cost to create 1USD?
The cost of producing bitcoin increases as the value of bitcoin increases. The value of bitcoin is linked to number of users and number of transactions. Many ppl are using it as speculative investment but its not really that I think. As bitcoin network grows, value of bitcoin grows. As people move into bitcoin for payments and receipts they stop using US dollars, Euros etc which in long run devalues these currencies. So its more of a currency devaluation in long run than perhaps a bitcoin bubble and that should be a concern when there is even more mass adaptation of bitcoin. Its going to be at expense of Dollar, Euro etc. Hence emerging economies like China, India and even Aus are thinking about adapting, pegging or recognizing bitcoin as national currency. It might not happen right away but think about the long term potential...
An Eg. bitcoin transfer can take minutes, with low fees, without any permission and all formalities that banks require us to do, where as wire transfer to another country might take longer using a bank of conventional means and around $35 or so in charges. So bitcoin is the new money made by the ppl participating in the bitcoin community and increasing its intrinsic value....
Everything about Bitcoin is still pegged to how much value it is in these currencies.
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