5 votes

Bitcoin Bubble?

Being the contrarian I am, I went searching for some anti-bitcoin love in response to all the bitcoin love going on here. Surprisingly there isn't much out there, which leads me to believe I am even more correct in thinking that bitcoin is a bubble about to burst:

The question left to be answered is whether or not bitcoin is once again taking the shape of a bubble. The answer is yes. There is present a reflexive pattern of people buying because prices are rising, and prices rising because people are buying. The myopic are extrapolating the price trend of the past three months, which they deem is normal, and in so doing they exacerbate it to the upside, thus attracting even greater fools. The inflection point will come when the continuity of bullish thought is broken, which could be anywhere between $49/bc to $69/bc. One thing is for sure, the amount of suckers left who are willing to jump on the moving and ever accelerating train is drawing thin, and so are their pockets.

When prices for any asset go parabolic, it does technical damage to a chart. It is sort of like someone deciding to go full speed in the middle of a marathon. Surely, one would look good for a few minutes. However, at a certain point one would inevitably collapse, with the possibilities of finishing the race being greatly diminished, let alone doing as well as they would have otherwise. Like Icarus, who had soared too high and melted the wax on his wings, parabolic moves always end in a crash. Ironically, the best thing that can happen for bitcoin naysayers is if bitcoin skyrockets to $100/bc within a week.

Read more here:

I like the idea of bitcoin, but its too unstable for me right now.

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Certainly it is an obvious

Certainly it is an obvious bubble, but...
The bubble maker used a special formula and this one might keep surprising the skeptics (like me) for a while longer.

In order for something to have a bubble

Bubbles require false demand.

BitCoin is still undervalued a lot. However, that is not to say that BitCoin could become overvalued at some point. At this current rate of corrections, it should hit about $180 per BTC.

will bitcoin last once the dollar falls?


SteveMT's picture

In Spain, The Bitcoin Run Has Started

Something is happening.


Something extreme is happening in Europe. Since Sunday, Bloomberg Businessweek reports a trio of Bitcoin apps have soared up Spain's download charts, coinciding with news that cash-strapped Cyprus was planning to raid domestic savings accounts to pay off a $13 billion bailout tab. “This is an entirely predictable and rational outcome for what’s happening in Cyprus,” says ConvergEx's Nick Colas. "If you want to get a good sense of the stress European savers are feeling, just watch Bitcoin prices."

You are 100% right!!!

All of my libertarian buddies in Spain are dumping fiat and going bit... Gold and silver is still something they go after but with much care do to probable government confiscation in the future. People need to understand that bitcoins are a global currency and that we cannot simply wait till S H T F financially in the USA. If you ever consider putting a little into bitcoins the sooner you do it the better. Prices will keep going up since the currency cannot be inflated.

"We’ve moved beyond the Mises textbook. We’re running in the open market." - Erik Voorhees

Long Term Hold

I bought in at $13 /btc and see bitcoin as a long term hedge similar to gold. If I had any extra money laying about, I would even be buying at current prices. But right now it's all going to silver.

Same here man...

Silver is where it's at right now. Bitcoin is for the long game. Bitcoins are not something to speculate with. Right now bitcoins are at 65.$. I have been hoping for bitcoins to come back down but their price and adaptability keeps going up. On top of that, the economic instability in Europe, as is growing here, just keeps validating bitcoins even more.

I would say this though, not as a response to the post but rather as an attempt to complement the information and opinions given: bitcoin prices are not manipulated like silver and gold. If anything I see the price of bitcoins as a better indicator of the fall of fiat currencies. It is for this exact reason that silver and gold, I think, are a good investment Right Now - since silver and gold are manipulated and actually worth a whole lot more.

"We’ve moved beyond the Mises textbook. We’re running in the open market." - Erik Voorhees

Price keeps going up

It's the same thing that happened to me with Google. I knew it was a bubble, it kept going up and up, the price was too high with no good dips, and I never got in. Why do good investments act that way, darn it!