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If your cabbie understands BTC you might have a point. We aren't even close to there yet

• throwawaywrench 6y ago
  >the usual rule is that if your cabbie starts talking about it, it's time to get out of the market. >If your cabbie understands BTC you might have a point. We aren't even close to there yet The point is that the cabbie likely doesn't understand BTC. When an asset class becomes so popular that people who have no idea how it works are putting money into it and loudly campaigning for others to do the same that is a sign that you are in a bubble. It doesn't necessarily mean that the bubble is about to pop. Some bubbles can last decades. See real estate in a variety of locations around the world as an example. However lot of dumb money (people who don't understand what they're buying) flowing into a thing because of fomo can be a predictor that prices are unsustainable.
  • mrits 6y ago
    "When an asset class becomes so popular that people who have no idea how it works are putting money into it and loudly campaigning for others to do the same that is a sign that you are in a bubble." It absolutely isn't a sign a of a bubble. There aren't many people that understand what they are investing in be it currency or Google. The success of the investment has nothing to do with the cabbies understanding. Taking his advice does.
• junippor 6y ago
  Understanding doesn't come into this. Most people don't understand money any farther than $5 + $5 = $10, and it still works really well. Unlike bitcoin.