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Every time someone says cryptocurrencies are 'a bubble' I know they are not paying attention. Or for some reason think there is going to be a single event that

by Shorel 4y ago

Every time someone says cryptocurrencies are 'a bubble' I know they are not paying attention. Or for some reason think there is going to be a single event that will finally end cryptocurrencies. Or they have an agenda and want them to end. It's not a single bubble, that stuff happened several times already. They lost more than 50% of their value in a short amount of time, several times already. It's a boiler. Its periodic bubbles, over and over again. Price fluctuations, slow climbing, then fast climbing, then it goes down, repeats. It has happened already, and it will be happening again and again. Every time you will be watching, thinking: this time, this is 'the big bubble' and it will burst and cryptocurrencies will be no more. Except they will continue boiling, prices will go up and down, and you will have to wait for the next time.

rippercushions 4y ago
I don't think anybody is expecting cryptocurrencies as a whole to cease to exist. I do think a lot of people, including myself, see the current turmoil in the market as only a precursor to what will happen if/when Tether implodes and a whole lot of funny money is suddenly sucked out of the system. In crypto history terms, this would be a Mt Gox level event, which crashed prices by over 80%: https://en.wikipedia.org/wiki/Mt._Gox#/media/File:Bitcoin_exchange_mtgox_-_Feb2012-Feb2014_-_log_scale.png https://en.wikipedia.org/wiki/Mt._Gox#/media/File:Bitcoin_ex... (log scaled)
- Shorel 4y ago
  Exactly. I expect that to happen to tether eventually, just because of inflation. There's also the probability of a 'flippening' event in the future, because ETH is no longer PoW. So ETH would switch to be the #1 currency. Or maybe not. But the cat is out of the bag, and cryptocurrencies are here to stay, and I would even say in any four year period they will still gain more than any other kind of asset for the foreseeable future.
bruce511 4y ago
I agree that it's bubble and bursted several times. The key part of the rescue though is bringing in new money with another level of investors. The current level seems to be pitched at "everyone". After that there's not much place to go. There are some territories currently excluded and they may come into the fold, but probably won't. The root problem is that it's utility is limited, and as yet has not found a way to grow that utility in proportion to its overall growth. By contrast a stock like say apple seems (and may be) bonkers, but apple has shown consistent utility growth. They improve sales by appealing to more market. People by an iPhone to use it, not to keep it and sell it for more. Of course crypto may not crash. Red flags don't mean certain collapse. They are, after all, just red flags.

by Shorel 4y ago

rippercushions 4y ago

I don't think anybody is expecting cryptocurrencies as a whole to cease to exist. I do think a lot of people, including myself, see the current turmoil in the market as only a precursor to what will happen if/when Tether implodes and a whole lot of funny money is suddenly sucked out of the system. In crypto history terms, this would be a Mt Gox level event, which crashed prices by over 80%: https://en.wikipedia.org/wiki/Mt._Gox#/media/File:Bitcoin_exchange_mtgox_-_Feb2012-Feb2014_-_log_scale.png https://en.wikipedia.org/wiki/Mt._Gox#/media/File:Bitcoin_ex... (log scaled)

Shorel 4y ago
Exactly. I expect that to happen to tether eventually, just because of inflation. There's also the probability of a 'flippening' event in the future, because ETH is no longer PoW. So ETH would switch to be the #1 currency. Or maybe not. But the cat is out of the bag, and cryptocurrencies are here to stay, and I would even say in any four year period they will still gain more than any other kind of asset for the foreseeable future.

bruce511 4y ago

I agree that it's bubble and bursted several times. The key part of the rescue though is bringing in new money with another level of investors. The current level seems to be pitched at "everyone". After that there's not much place to go. There are some territories currently excluded and they may come into the fold, but probably won't. The root problem is that it's utility is limited, and as yet has not found a way to grow that utility in proportion to its overall growth. By contrast a stock like say apple seems (and may be) bonkers, but apple has shown consistent utility growth. They improve sales by appealing to more market. People by an iPhone to use it, not to keep it and sell it for more. Of course crypto may not crash. Red flags don't mean certain collapse. They are, after all, just red flags.