Why I Think Bitcoin Is Not In A Bubble

in bitcoin •  7 years ago  (edited)

With the recent record breaking rise in the value of Bitcoin many news stories are covering the cryptocurrency in their news cycles but they lack a fundamental understanding of what Bitcoin is.

Because of this they are comparing Bitcoin to other assets and falsely claim that Bitcoin is in a bubble that will soon burst.

What they don't understand is what makes Bitcoin valuable and why it will continue to rise in price as more people use it.

Simply put, the more people that use a currency that is becoming more scarce over time the higher it's value will be.

More Demand + More Scarcity = Higher Price

Unlike fiat currencies that can be printed at will Bitcoin is mathematically programmed to create a finite amount over a specific period of time.

More people using a currency that at the same time is becoming more scarce means the price of that currency will continue to rise with the demand.

It's very simple math really.

Here's a video that will help explain it more.

John McAfee "Bitcoin is Not a Bubble" August 2017 Update

Do you own Bitcoin? Do you use it for transactions or are you holding it as a store of value?

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Bubble territory for this run is above 40K

How did you come up with that number?

We need not take advice from Mark Cuban the guy who endorsed Clinton... That tells me all I need to know.

I hear you and I think taking advice from him about Bitcoin is probably not a good idea because I don't think he understands it. But to rule out taking any advice from Cuban just because of his political views is short-sighted and dismissive.

I mean, he does seem to have a grasp on business and building teams. May have good advice about that.

And scarcity is the only thing keeping BCH at some kind of price...that will change soon as they mine more and Coinbase unlocks user balances

Agreed. I'm still trying to figure out how to claim my Bitcoin Cash from the blockchain.info wallet. Any tips on that?

I heard you will need to wait 8 more weeks
https://steemit.com/bitcoin/@ragetester/crypto-hodling

maybe this helps. it helped me to claim my coins.

This looks interesting until I read the instructions.

Blockchain.info / Mycelium / Copay / Bitpay / Jaxx

  1. Save and run the standalone tool attached to this article.
  2. Enter your seed (12 words or more) at the "BIP39 Mnemonic" box.
  3. You will get the list of your addresses and their private keys.
  4. By going with the cursor on a private key, the page will show the qrcode.

There is no way I'm entering my seed words into some software from a site I have never heard of. Thanks but no thanks.

The value of cryptocurrency is also the ease of use, its anonymity, the lack of political influence (deregulation), as well as it is a finite asset. I am VERY new to Steemit but fairly seasoned in crypto and cannot wait to interact with you all in the future!

It is an amazing technology and the blockchain behind it is the real game changer.

Recently, Estonia and Australia decided to experiment a government-backed crypto currency. It means that also governments are starting to "accept" the blockchain technology revolution. This should have a positive effect on bitcoin long-term price. Thanks for sharing @luzcypher

Shit, how did this commercial get in this thread?

Sorry, not a commercial. Just instructions on how to get free Stellar Lumens if you had a Bitcoin balance on June 26.

Very nice post thanks for sharing @ luzcypher

Bitcoin. 5K by the end of the month :-)

You may be right.

I agree that BTC isn't a bubble, but do you think it will win out in the end with all of these amazing projects with better tech surrounding it?

That's a really good question. There are many other alt coins with better tech behind it but for now, the infrastructure is mainly built around bitcoin.

Most altcoins are bought and sold for bitcoin so it will have a big share of the altcoin market for the foreseeable future.

Thee is no bubble. Only bubble that exist is people's fear that cryptocurencies will collapse. But why should they collapse?...there is no one reason for it. Really sky is the limit...that only numbers on our screens, we deside how vaulable they will be

only numbers on our screens, we decide how valuable they will be

I like that.

Bubble bubble bubble...since begining that word is floating around like it is somethng real. All money is illusion, even fia currencies are 97% only numbers on our screens. Cypto's are just our way of creating money from nothing so as banks do. That word bubble is just metaphore for fear that we woudn't be able to continue creating money from nothing. Manipulators can't stop it in any way.

Of course bitcoin is not in a bubble. for a bubble to exist it must meet the following requirements.

The asset must be widely held, and
The assets price action must move above the ability for the average person to acquire it.

Neither is the case. It has a long way to go. For further info check out this blog by an economist friend of mine. https://steemit.com/money/@marketreport/so-the-mainstream-media-has-become-bitcoin-bubble-experts-now-by-gregory-mannarino

Good read. Thanks

you are welcome my friend.

great post , keep posting my friend

  ·  7 years ago (edited)

It's a great interview and it shows how the paradigm of currency has been forged into the concepts of our flawed systems.

This is truly an epic time to be here, the fact that we are all here on Steemit, earning, learning, sharing, and it's still practically unknown to the masses.

IT'S AN HONOUR.

I do feel very fortunate to be on Steemit too.

Nice post and video! Truth is beginning to get out.

Hi @luzcypher. Do you follow any other coins other than bitcoin? If you so might find my new contest fun. It's called "Battle Of The Crypto Coins" and quick and easy to enter. Basically the winner is decided by who chooses the coin that has the greatest percentage increase over the week. 1st Place wins $50 Steem Dollars, 2nd Place wins $25 Steem Dollars. There have been 10 entries so far. Hopefully you'll have time to enter by Sunday 20:00 GMT :)

P.s I'm hoping to do some more entries in your openmic contest again soon.

Bubble? We are only getting started, I would say.

Seeing how the market cap of bitcoin is a fraction of the world's currencies and it's use is growing I think you're right.