I'm really amazed at these comments.
Every time Bitcoin goes through a major move, the "bubble" crowd comes out of the woodwork, while having done absolutely no effort in understanding what Bitcoin is.
Every time Bitcoin goes through a major move, the "bubble" crowd comes out of the woodwork, while having done absolutely no effort in understanding what Bitcoin is.
(And please spare the tech; people really do understand it, at least to the level that matters)
Says who? Your Econ. 101 book?
You flippantly decide that no new class of asset can ever come into being and decide to present it as one of the fundamental laws of nature?
Also see this video: https://www.youtube.com/watch?v=8iNeXCAM_Ik
Just to be clear: bitcoin (or some other existing or future crypto) could become for example a currency one day. But it clearly isn't one now.
It used to be a currency quite a while ago - people would actually use it in contracts, most importantly long term debt contracts (long term contracts is where the value/acceptance of the currency really shows; imagine taking or issuing a 30yr mortgage in Bitcoin, as in the homeowner is obliged to pay fixed X Bitcoin per month, lol). A big part of the great depression fighting/relief was to make debt contracts denominated in gold unenforceable.
A digital trading card that's used for speculating and buying drugs?
I understand what fundamentally motivates people to trade it and that they tell themselves all sorts of stories about a "new financial system" because it feels better than saying they invest in Charizards. I also know not to touch it.
To Bitcoin's credit, it made a lot of people think about what makes something a currency, the differences between investing and speculation, consequences of deflation, etc.
To see its value, I don't need to make an effort to understand what a pear is, or a bar of gold, or a house.
I and others have looked at Bitcoin, and its trillion dollar market cap (which means Bitcoins are worth more than JP Morgan Chase and Johnson and Johnson put together) and realized it has absolutely no value.
At least subprime mortgages, 1999 dot-bomb stocks and the like had some value. Bitcoin has no value. On the next market contraction like 2008 or 2000 or the like Bitcoin value will collapse. Maybe even before that.
I wonder how long ago that "realization" occurred, and if you have since then "realized" how much the market has disagreed with your conclusion, or if you've "realized" the size of the opportunity loss?
There is a language of such bubbles - not, here is why it has value, like a loaf of bread or chair or bar of gold, but think about FOMO and that type of thing. There have been fly by night scams since Ponzi's postal reply coupons, or Dutch tulip bulbs and before that - I don't worry too much on missing out on the latest scam.
You say it's 'the reason' which I'm not sure means 'the only reason' or 'a reason'.
If it's the former: How will crypto, let alone any collectable or sentimental item fit into this framework?
If it's the later, then yes, but utility varies by recipient and then there are other factors which play into price, especially in the short term.