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That is actually not only true for goldbugs, but for all financial bubbles. If you had asked someone about AAPL in summer of 2012, they would have told you tha
by this_user 13y ago
That is actually not only true for goldbugs, but for all financial bubbles. If you had asked someone about AAPL in summer of 2012, they would have told you that any specific news item was bullish. If you had asked someone about crude oil in 2008, they would have told you that any specific news would drive the price higher. It is the same pattern over and over gain. Once the goldbugs throw in the towel and admit that they were wrong, it will be a good time to actually buy gold.
- grey-area 13y agoYes, you're right, this applies equally well to the dotcom bubble, housing markets or any other bubble. Disconnects between value and price can happen in any market, and they're very hard to recognise, though if you find yourself rationalising incredibly bad news like this as having an upside or being a buying opportunity, and dismissing falls/rises of 20% in hours as normal, or claiming that an asset is inevitably going to rise in value, you're probably in a bubble. I can't even see a clear lower-bound on the value of bitcoin as there is with say housing (rental value) or oil (use value), though it does compare well to shares - it could easily go to zero in the long term and is likely to fluctuate wildly based on sentiment in the meantime.
- nutate 13y agoInteresting look at the lower bound that got a lot of bitcoiners angry. The comments are actually pretty good as the initial author did miss some of the finer points on bitcoin to which he responds in the comments. http://neweconomicperspectives.org/2013/12/fair-price-bitcoin-zero.html http://neweconomicperspectives.org/2013/12/fair-price-bitcoi...
- user24 13y ago> dismissing falls/rises of 20% in hours as normal That is pretty normal for bitcoin though isn't it?