Market bubbles are a thing. For a while there everyone was convinced that small plush toys were going to help them retire.
Yes, bubbles are a thing, but Bitcoin appears to be something different. It's passed ever test and attack. It's now being taken seriously by mainstream financial professionals, CEOs of publicly traded companies and Wall Street.
These facts themselves can't prove that Bitcoin is not a bubble but it does mean if you buy into that line of thinking, then encryption and math have to be suspect as well, since Bitcoin's functioning relies on them.
> Also, Bitcoin has been the best performing asset of the past 10 years in which most people didn't take it seriously
You're literally describing the bubble. An asset that is worth $20k one day, and worth $6k 6 months later, is worthless to anyone except speculators, speculating on... a bubble.
You're literally describing the bubble. An asset that is worth $20k one day, and worth $6k 6 months later, is worthless to anyone except speculators, speculating on... a bubble.
This is short term thinking and a general mischaracterization.
First, we've never seen a new form of money created in realtime, so it's hard to say how it's supposed to perform.
However, nobody should expect something that will fairly soon have the same market cap as gold (about $10 trillion dollars) to not have a lot volatility as it grows. The tech darlings of today—Apple, Google, Twitter, etc. were also quite volatile as they grew.
There's a lot of ups and downs for Apple as it went from darling startup to nearly going out of business in the mid-90's to a $2 trillion dollar market cap today.
As you may know, the mantra in the bitcoin community is to HODL—hold on for dear life, not to time the market. For long term investors, the ups and downs don't matter.
> First, we've never seen a new form of money created in realtime, so it's hard to say how it's supposed to perform.
This hasn't changed with Bitcoin. BTC is money like a gold bar, beanie baby, or block of IPv4 addresses is money.
> However, nobody should expect something that will fairly soon have the same market cap as gold (about $10 trillion dollars) to not have a lot volatility as it grows. The tech darlings of today—Apple, Google, Twitter, etc. were also quite volatile as they grew.
Nobody describes the tech darlings as money, or as an alternative form of currency. They're equities you can invest in, and comes with the expected volatility.
> As you may know, the mantra in the bitcoin community is to HODL—hold on for dear life, not to time the market. For long term investors, the ups and downs don't matter.
It's nice that there's a backcronym that's been created from a typo. I still don't invest in money, I use money to invest in assets.
> First, we've never seen a new form of money created in realtime.
Call me when I can buy my latte and groceries with bitcoin, or pay my mortgage. Until then you've made an investment vehicle, not money.
> The tech darlings of today—Apple, Google, Twitter, etc. were also quite volatile as they grew.
Survivorship bias. Pointing to a handful of random successful companies and trying to draw conclusions is literally meaningless.
> As you may know, the mantra in the bitcoin community is to HODL—hold on for dear life, not to time the market. For long term investors, the ups and downs don't matter.
Yeah, this isn't something you actually say about money. Honestly, it would be a kind of cultish thing to say about an investment too. I don't need a mantra for how I invest in my 401k, why does Bitcoin need one?
> A publicly traded company that puts its treasury of $425 million into Bitcoin isn't speculating
That's the literal definition of speculation, a risky one at that.
Yes, bubbles are a thing, but Bitcoin appears to be something different. It's passed ever test and attack. It's now being taken seriously by mainstream financial professionals, CEOs of publicly traded companies and Wall Street.
These facts themselves can't prove that Bitcoin is not a bubble but it does mean if you buy into that line of thinking, then encryption and math have to be suspect as well, since Bitcoin's functioning relies on them.
Also, Bitcoin has been the best performing asset of the past 10 years in which most people didn't take it seriously: https://www.bloomberg.com/news/articles/2019-12-31/bitcoin-s...