An article written for Zero Hedge says that Bitcoin has passed Tulip Mania as the biggest bubble in history, but are they right?
Read the full article here...
If you don't know about Tulip Mania - watch this scene from Wall Street 2: Money Never Sleeps
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frameborder="0" gesture="media" allow="encrypted-media" allowfullscreen></iframe>An interesting quote from the article.
Conveniently, overnight the former Bridgewater analysts Howard Wang and Robert Wu who make up Convoy, released the answer in the form of an updated version of their asset bubble chart. In the new commentary, Wang writes that the Bitcoin prices have again more than doubled since the last update, and "its price has now gone up over 17 times this year, 64 times over the last three years and superseded that of the Dutch Tulip’s climb over the same time frame."
It is quite possible all of crypto is in a bubble and things are growing too fast. It is also possible that the free-market is working and the demand is far out-weighing the supply. With the blockchain technology different than the rise in tulips, we are seeing an evolution of technology that hasn't been seen before.
There has to be a bubble forming, but to think that it will pop dramatically soon, is unlikely. Soon being within the next year or two. The stock market is also on a bubble right now and might even have a better chance at popping sooner than the crypto market due to the all the factors that go into holding up a centralized economy.
It is without a doubt that the technology of the blockchain is in it's infancy. Investing in companies and coins that will stand the test of time, you can still win big; even if the bubble pops.
(all GIFs from www.giphy.com)
I think of it like the stock market crash in the 20's. That was a huge bubble, but the people that had stocks in Exxon or Ford and held on to them through the bubble and after the crash are filthy rich now. The is money they could pass on to their kids. I know, because my great grandfather went around during the depression and used his gas station money to buy up the Esso stocks from his co-workers for pennies. He bet long-term on a company that became Exxon.
The same can happen now if you bet long-term on the solid foundations in the crypto space. Bitcoin, Ethereum, Litecoin are three of the best. If buying and holding for the long-run is your plan, then it doesn't matter what the bubble does.
What are your thoughts on the article and Bitcoin being called the biggest bubble in history?
Let me know in the comments below.
Thanks for reading.
BTC is useful as a temporary store of value.
Within 10 years it will not exist.
Guaranteed SHA-2 encryption will be broken.
BTC is currently not remotely close to top as technically advanced.
But it has first mover advantage. It should end 2018 still on top.
Not sure it will end 2019 on top. Lots of way better technology will leave BTC as myspace.com
EOS or DASH could be long term winners
I don't really understand the comparison of BTC and tulip mania. Tulips are plants and so there will always be more. People who know about BTC know that there is a limited supply. Also, BTC has an actual use in the world instead of just decoration like tulips. Will BTC have a huge crash? Yeah, probably. It's happened before. But that doesn't mean that it won't come back up again.
right. comparing BTC to tulip mania only means you seriously dont understand one or the other or both since they are not remotely similar
I agree 100% with you guys. I really appreciate the feedback on my post.
thank you for the insight.. I have branched out to a few other coins but now I think I am gonna back to the major 3 coins then.
I agree, I branched out too and made some mistakes and had a few wins. Sold most of them off for a decent profit this most recent push, and got more of the big three too. I still have some I like, EOS, OMG, obviously STEEM, but I'm branching out less and less as things get more volatile. Thank you for reading.
To call it a "bubble" is to assume that it will pop and the value will crash. Hopefully it will simply level off instead. We will see.
There have been huge corrections in the past. 90% drops. That's what Charlie Lee was saying with Litecoin. LTC is having a huge pump but there may come a time where there's a massive correction, scaring away novice investors. Just HODL!
Thanks for this post. I’m fairly new to the crypto world and learning new things every day from post like yours!