Proof that cryptocurrencies are a major bubble with no underlying fundamentals for their valuations

in #bitcoin7 years ago (edited)

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As on 15-SEP-2017

This is just a thought from a layman .. please give me your thoughts about my observation ..

So, if you look at the top ten cryptos & their market caps & the 7 day graph on the right, it is hard to differentiate one graph from the other. You could swap them around & no one would know any better. How can the prices of all cryptos be moving almost in tandem ? Because, people buying & selling them don't have a clue how to differentiate one from the other ! Now, if there is little that differentiates one cryptocurrency from the other, why do we have so many ? Also, someone new will continue making a new crypto with some market buzz till it all comes crashing down !

Now, we all know that the price movement of cryptos in the last year or so has been absurd. It all started with the increase in prices of Bitcoins & spilled over onto Ethereum & so on & so forth. And then there were the ICOs - and to buy ICOs, one needed Ethereum or Bitcoin. Its all a vicious cycle !

To me, it all looks like a major house of cards waiting to collapse. Almost everyone who will tell you now that this is a great buying opportunity have a vested interest in cryptos - they won't tell you that they had no idea Cryptos would shoot up like a rocket - even now they won't tell you that the rocket is gonna burn out sooner or later & then its gonna fall !

Blockchain is a great technology & it is going to play a huge role in the coming times - that doesn't mean all these cryptos need to be priced at such astronomical rates & that too in such a small time frame.

To me, this seems like the best way to explain all this - everyone with a vested interest in cryptos are just trying to avoid "Eating my own dick on national television" (just like John McAfee) !

Ps. Thanks in advance for your upvotes ;-)

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Everyone who has a interest on crypto knows that this happens from time to time. First, every cryptocoin has been banned by china . All the same in that regard. Second, most crypto can't be traded directly to Fiat and get their value from their trade exchange with Bitcoin.

I doubt the "guy" who bought Bitcoin above $5000 will be satisfied with your response :-)

The guy who did that was an idiot

That's the case for bitcoin, litecoin, etc... whose only added value is anonymity which is -let's face it- not something important for everyday customers. Only crucial for dark economy like drug/gun trade.

There are real value-adding coins out there, which utilise blockchain technology to actually generate value. Like Steem which is powered by its users or JSEcoin that allows browsing without ads thanks to browser mining (amazing idea!) or SiaCoin that allows you to lend your extra storage space. I think those might be of some value in the long term. Not for daily traders but for those that put some money there and forget about it for the next 2 years.

I agree .. my main concern is the value being attributed to all these cryptocurrencies .. easiest way to understand this by example is like this - today A buys "X"coin for 1, then B buys it from A for 2, then C buys it from B for 3 & so on & so forth .. however, what value addition is happening & what is the utility ? not much ! .. looks like a self-perpetuating ponzi scheme to me

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