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The real estate bubble of 2007 was only able to happen because of the cheap money the fed made available. The vast amount of bitcoin is paid for from savings,
by etr-strike 9y ago
The real estate bubble of 2007 was only able to happen because of the cheap money the fed made available. The vast amount of bitcoin is paid for from savings, not debt. Meanwhile, Yellen just warned that there is excessive amounts of debt in the economy again. Money has been made available at near 0% interest rates for a decade. There’s definitely a bubble out there, but it’s not bitcoin.
- netsharc 9y agoYes, there is a huge stock market bubble at the moment, but guess what, something that gained 50% in a month is also something worth speculating on, > The vast amount of bitcoin is paid for from savings, not debt. Holy crap, got any evidence for this statement? And when one of the big Bitcoin whales cashes out, there will be a crash, and all those people's money will be gone. Or will they be? I guess you can argue they will still have their bitcoin money, but sadly they won't be able to pay their rent or buy food with that...
- etr-strike 9y agoBanks aren’t giving loans to buy bitcoin.
- netsharc 9y agoI get offers for cash loans, no questions asked all the time. Or on Coinbase I can buy Bitcoin using my credit card, which has a 4-digit Euro limit. What's stopping the neighbor who has the same card to think "Oh I'll just max out my card to buy Bitcoin, it will double (or whatever) its price by the end of the month, I can withdraw my principal to pay off that credit card.".
- etr-strike 9y agoMuch smaller amounts compared to the fraud taking place during 2008.