RE: Let's Talk About The Fad Term Of Our Time... "Bitcoin Bubble". Is "Bubble" Now Such An Overused Term That It No Longer Applies?
Considering that we are now in the midst of a gigantic "everything bubble," it's safe to say that a so-called bitcoin bubble is the least of our worries. In fact, cryptos may not even be in a bubble – if we view their prices / valuations from a certain perspective.
Since the crash of the housing bubble in 2007-08, the Fed and other central banks have blown massive bubbles in everything from bonds and real estate to student loans and money in general.
Yes, we even have a money bubble – as a result of the numerous QE money-printing programs around the world. And with so much easy money at hand, it's easy to create various other bubbles.
As a result, everything is overvalued nowadays. Far overvalued. And the price of anything that is overvalued will come crashing down to realistic levels. Most likely sooner rather than later.
As for bitcoin and other cryptocurrencies, they may have increased in price 10-fold over the past year or so, but to declare them to be overvalued is a call that nobody can safely or reasonably make.
In fact, the continued rise in the price of bitcoin may indicate that it is still UNDER-valued.
Regardless of any crypto-bubble, I'll keep my money in bitcoin, steem, and truly undervalued assets such as gold and silver.
Couldn't agree more @majes.tytyty. when considering what a bubble may look like one must determine what to compare it to. Currently the options for comparison are themselves highly inflated so as you say we may be seeing unnaturally low butcoin pricing at the moment! It's exciting and terrifying times all at once.
Yes, indeed ... exciting because any holder of precious metals and cryptocurrencies can feel safe, secure, and optimistic. But also terrifying, cuz when the shit hits the fan and economies start collapsing, it's gonna be ugly everywhere.
Ugly in terms of massive destruction of wealth, and possibly in terms of .... massive destruction from a convenient war.
Peace.
You nailed it @majes.tytyty!