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We are most certainly in a cryptocurrency bubble ... just like nearly every game-changing technology goes through and just like the dot-com's in the 90's. The real question is ... what if we are NOT in a bubble?

Do you think you should judiciously pick your cryptocurrency investments and ride the roller coaster ... or wait for the shake-out and accept lower returns?

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exxodus (60) · 7 years ago

Great post. I 100% agree. I have been telling people it's a HUGE crypto bubble again just like 2013. Prices will crash and settle down before starting the next wave of bubble.

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booster (68) · 7 years ago

This post has received a 14.62 % upvote from @booster thanks to: @heavey.

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rolandor (32) · 7 years ago

Really? LoL, ok, maybe ETH is the 2nd generation, IOTA is the 3rd.. really hope that Bitcoin don't take other Big Coins anymore.. But something has to be king, and I thing that is good that BTC rule them all.. because there is no central figure, no miners, no nothing, and that's not true with any other coin..

Something has to give value to all.. and since in ETH Vitalik is king, if ETH goes to top Volume, an if anything that happen to him, it will be caos for all.. unless that the volume change to an equality for the top 10? Maybe by type of Coin, like Security (Monero, Zcash, etc), Platform (ETH, NEO, Lisk, Arc, Tezos, etc), DAG & IOT (IOTA, Byteball, etc), Payment (TenX, Monaco, etc), Media (BAT, AdEx, etc), and maybe some more..
or maybe could be by region, like Asia (NEO, ICON) and rest of the world..
or Capitalist, Communist, and LIbertarianist countries...

Well, this analisis is a little too simplistic and don't take into account that noone has to be in charge, and putting ETH first, there will be a head in there (that is wrong in so many levels, for ETH anyway)..

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steemitboard (66) · 7 years ago

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emi0074 (25) · 7 years ago

Bitcoin, is pose to go lower, has not flip yet going back and resuming the uptrend, now is consolidating, to resume, needs to break the recent lows that she did, you can see easily on weekly chart and daily.

You ask why taking the lows, Bitcoin like the other majors Crypto, is manipulated by the banks, and they use the same model, before resuming, they have to take out the the other participants, that follow classic TA.

So who is trying to buy now, put stop loss below previous low, and in most charts there is also a double bottom, two same price lows, another as for TA, where stop loss is a secure place to be.

Now a part this, I think really that 8k is a price where will be lots of interest from the banks, and they will buy, all the people that will pull the plug, from about 12k until 8k, they will buy all from the sellers.

Slaughtering, them, then the price can resume, too many normal people making money is not the Bank model, they will not allow it.

Now Bitcoin seems to dictate the trend also of many other coins....so the market as paused in most coins, or retracing too.....together with Bitcoin.

Notice how ETH instead has a good tone...or BNB for Binance, example, people tend to move to crypto, that are felt more secure....

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kabir88 (60) · 7 years ago

Great article Tom. I've been looking at this too and here's my view on it from someone coming from a finance and tax background:

https://steemit.com/bitcoin/@kabir88/the-future-of-money-beginners-guide-to-money-bitcoin-and-crypto-currency

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zoidsoft (62) · 7 years ago (edited)

I think you may be right that bitcoin is in a bubble, but different currencies have different uses. Bitcoin is meant to be a secure SOV (store of value). Ethereum however is meant to be a transaction facilitator so it's a bit ironic to use it as a store of value. Ethereum has a great deal more potential in other areas.

It's not a matter of "there can only be one", but a matter of "the right tool for the job". That being said, most cryptocurrencies will be practically worthless eventually. There will probably be one that emerges as the next Google of finance.

You might also keep in mind that one of the authors of Steemit (Dan Larimer @dantheman) is working on EOS which is looking to be even more sophisticated than Ethereum.

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vimukthi (72) · 7 years ago

I agree except for BTC being a SOV. BTC is more like ARPANET. It was the proof of concept prototype. BTC isn't a physical thing. It's more like a service. When there are already much better currency options like Dash, NEM, PIVX the value of BTC shouldn't be much. Setting up a Masternode that get paid or using PoS coin is a better store of value. I predict BTC marketcap to go below $5 billion by 2020. It's a relic that belong in a museum.

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zoidsoft (62) · 7 years ago

Andreas Antonopoulos makes an argument that if BTC gets more accepted, then the FUD that governments can bring down on exchanges can be a serious detriment to the currency. Then the more virulent strains of cryptocurrencies could sidestep what bitcoin cannot. Government speaks of it as an anonymous currency which it is not, but some of the alternaitves like Monero and Dash do have these characteristics. The exchanges have AML and KYC making it difficult to convert national fiat.

I suspect we'll have a better idea in November whether bitcoin can keep up. Right now it has the name and brand label. Other currencies haven't faced the scaling issue on the same level as bitcoin has.

Lightning network might make the difference though and save bitcoin from potential demise if it does so in time before the FUD wipes it out.

When I was referring to SOV, I was thinking in particular of Aristotle's principle of scarcity which is why Bitcoin fits the bill better than ETH in this regard. BTC has a fixed upper limit which means that it's deflationary over time. Bitcoin isn't unique in this regard though as there are many others that do the same. Ethereum however is not deflationary because it's meant as a transaction facilitator.

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vimukthi (72) · 7 years ago

Thanks for taking time to respond. My problem with BTC is that EVERY SINGLE THING about it completely unnecessary. BTC has no Unique Selling Point. It has no clear roadmap, too much disharmony and censorship in the community AND many of the cryptos are limited in supply. Dash has only ~18 million coin supply.

None of the proposed solutions doesn't do anything on the protocol level and to make matters worse, Alt-coins have already solved/implemented EVERY SINGLE one of them and more.

NEM has been able to do 3000Tx/s for a long time. Dash&PIVX has 1.3 second transactions for just a few cents (or at times only a fraction of a penny.) Multiple coins already have/planned protocol level user names and messaging.

Dash has been getting 1-3 merchant adoption per day while the number is a negative value for BTC. Decentralized exchanges and p2p buying/selling of alt-coins is already picking up steam. BTC is simply already obsolete.

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zoidsoft (62) · 7 years ago

I have a few other alt currencies like ETH, LTC... Many of the alt coins are more difficult to gain access to and I haven't had time to read their white papers. EOS is another one that seems very promising.

I'm wondering though about some of these other alt coins how decentralized some of them are. It seems to be a trade off between being efficient and able to get something done and lagging behind the way bitcoin does because there's no central authority.

I just missed the dip in June when Vitalik Buterin's death rumor sent the coin down to 10 cents! You don't want to be in the situation where the death of one person can mean the end of the coin. But I hold onto ETH because of its smart contract platform.

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vimukthi (72) · 7 years ago

Most of the BTC mining is done in China. Authorities could deal a major blow to BTC mining easily. https://steemit.com/eos/@iang/eos-with-dpos-is-immune-to-the-gfw-attack-because-it-is-more-decentralised

https://www.dashforcenews.com/bitcoin-disincentivizes-community-harmony/
One of the main reasons BTC can't really get anything done is exactly because it has no governance model. BTC is a tragedy of the commons.

Buying ETH with fiat is just as easy as BTC and several exchanges are already adding Dash/fiat trading pairs. The P2P buying opportunities are also improving. BTC on the other hand is going nowhere except down and Wall Street.

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