The Bitcoin Bubble | Forex Factory

The Bitcoin Bubble | Forex Factory

The Bitcoin Bubble

From bruegel.org

The price of bitcoin has just passed $11,000. A year ago it was worth less than $800. Economists and commentators are thus increasingly concerned that this may be a bubble waiting to burst. We review recent opinions on the topic. The price of Bitcoin has reached and passed $11,000, from $800 just one year ago (Figure 1). The Economist’s Buttonwood’s notebook thinks that while the stock market has been trading at high valuations for some time, there is nothing like the excitement about shares that there was during the dotcom bubble of 1999-2000. That excitement has shifted to the world of cryptocurrencies like ... (full story)

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Dec 4, 2017 5:54pm — Edited

Quoting Guest

Disliked

Pleidian you do realize that central banks print legal tender right ?
The US dollar is backed by everything anyone owns on US soil + the biggest military on the planet. Get the difference ?

Ignored

You meant "print endless toilet paper"?? Right.

US$ is backed by hot air, same as €€, ££ etc.
When you have 1000 bucks in your bank, and the thieving bank prints 300000000000 gazillion bucks today, and inflation jumps 4%, what happens with your $1000????????

Hmmmmm.
Do you get a bucketfull of US soil??? Trumpy's toilet seat???? Signed Metallica guitar???? or a Gatling gun???

Ooooops your bucks are now worth 960.
Basic school bubba.

3

Dec 4, 2017 3:48pm

A bubble is when everybody is long... How many people do you know who own bitcoin? Most people don't know anybody heavily invested in it... Your parents.. your co-workers.. They are not long yet. When housing bubble happened everybody flipping houses and buying property.. Thats what a bubble is..

2

Dec 4, 2017 4:08pm

Bubble? Currently not.
It could be in the future... (laws, acts, political decisions)

So, why this media terrorism right now?

2

Dec 4, 2017 11:04am

This dude does not get it. Waste of time.

2

Dec 4, 2017 11:03am

The cryptocurrecy market capitalisation is tiny, approximately $350billion, compared to the stockmarket and FX market capitalisations. So why is there so much interest / concern. Are institutions worried about losing their control. What is all the hype about. People will invest in what they choose to invest in. It is a free market.

1

Dec 4, 2017 1:45pm

Quoting digit1288

Disliked

Just did a quick search...there are 1324 different crypto currencies out there at the moment!!! Total market cap of ALL crypto has topped 300 billion..which has been generated out of thin air...

Ignored

Central Banks print money out of thin air. But investors in a cryptocurrency had to have money to place a bid on a cryptocurrency exchange. Many of those 1300 cryptocurrencies are fraudulent, pump and dump.

1

Dec 5, 2017 7:06am

bitcoin itself is limited. but what if a new "coin" appear, and have much better technology and efficiency than current bitcoin?

and with BTC fork like BTCC and BTG, I wonder why people still believe that BTC will continue to rise. in the future, people surely going to do that again

1

Dec 5, 2017 10:29am

Quoting UKBanter

Disliked

{quote}

Agreed and there aint no govt ANYWHERE can print and fk bitcoin up. (and allah (god) knows they WILL try)

Ignored

i used to believe that banks/government could not interfere with markets but they can and will, if and when they want to. The millions of us traders are of no consequence to them. History shows this clearly everywhere and I would be delusional (IMHO) if i thought they could not screw up Bitcoin and other cryptocurrencies IF they wanted to. In the meantime, i make money trading BC and other currencies. I just trade the price action and hold nothing longterm. My biggest risk is that i hold fiat money in several currencies (have to buy groceries etc) because Crypto is not yet usable at enough places but i will be happy when it is. Just my very simplistic view of the world.

1

Dec 4, 2017 5:48pm

Quoting digit1288

Disliked

.... idea of packaging them up into credit default swaps and sell them onto unsuspecting investors.....does this ring any bells?

Ignored

If you refer to mortgages, empty houses, bankrupted people..... You should check your bell-tower!!!

Have you seen the endless, cheap, derelict, unused houses in Detroit, China etc.... inflated by the very banks you adore ??? That was bubble.

Have you seen a bunch of the LIMITED 21 MILLION bitcoins getting vandalised in a ghetto in Detroit????
Didn't think so

🍻

Dec 5, 2017 5:16am

Quoting Not-KPMG

Disliked

{quote} You meant "print endless toilet paper"?? Right. US$ is backed by hot air, same as €€, ££ etc. When you have 1000 bucks in your bank, and the thieving bank prints 300000000000 gazillion bucks today, and inflation jumps 4%, what happens with your $1000???????? Hmmmmm. Do you get a bucketfull of US soil??? Trumpy's toilet seat???? Signed Metallica guitar???? or a Gatling gun??? Ooooops your bucks are now worth 960. Basic school bubba.

Ignored

Agreed and there aint no govt ANYWHERE can print and fk bitcoin up. (and allah (god) knows they WILL try)

Dec 4, 2017 11:19am

Quoting digit1288

Disliked

Markets are so interconnected nowadays, the collapse of one, can potentially bring down everything. Who would have thought the 2008 financial collapse could have stemmed from dodgy mortgages?

Ignored

That was a derivatives issue, selling junk debt ( sub prime ) to the stock market and giving them a AAA rating. The fatal flaw was interest rates, when people could not service their debt BOOM!

Dec 4, 2017 1:44pm

[quote=digit1288;10559019]Just did a quick search...there are 1324 different crypto currencies out there at the moment!!! Total market cap of ALL crypto has topped 300 billion..which has been generated out of thin air...

Dec 5, 2017 7:04am

Quoting UKBanter

Disliked

{quote} Agreed and there aint no govt ANYWHERE can print and fk bitcoin up. (and allah (god) knows they WILL try)

Ignored

You're right! BUT instead, they can create/launch infinite number of cryptos (we've already seen plenty of them
since 2011 --> LTC, NMC (co-mined with BTC), PPC, ....) to, actually, infinity (Inf).
Also, cryptos transactions depends on a network of P2P computers in order to be confirmed quickly!
So, lack of computers means transactions down!
Without mentioning forks..., and the need of reliable infrastructure, legislation (in case of arbitrage),...etc

1

Dec 4, 2017 11:15am

The sharks are already circling...introduction of futures and other investment vehicles for bitcoin...some bright spark will then have the idea of packaging them up into credit default swaps and sell them onto unsuspecting investors.....does this ring any bells?

Dec 4, 2017 12:07pm

Quoting Pleiadian

Disliked

{quote} That was a derivatives issue, selling junk debt ( sub prime ) to the stock market and giving them a AAA rating. The fatal flaw was interest rates, when people could not service their debt BOOM!

Ignored

What's to stop the same thing happening with Crypto? Once the institutions start getting involved, there'll be some new derivative you can buy..theyre already talking about offering futures on bitcoin.

Theyll package it up with AAA rating and offload it to some unsuspecting pension fund or another investment bank, to be sold all over again...then we're back to 2008...

People have short memories...

Dec 4, 2017 1:40pm

you can't package futures contracts like mortgages into swaps - what would be the point anyway?

Dec 5, 2017 7:24am

[quote=Pleiadian;10559180]

Quoting digit1288

Disliked

Just did a quick search...there are 1324 different crypto currencies out there at the moment!!! Total market cap of ALL crypto has topped 300 billion..which has been generated out of thin air...

Ignored

Eventually everyone will have their own crypto. 7 billion plus to choose from. Ok, I exaggerate. 1324 is already ridiculous. GS, CME, CBOE will all make millions despite having nothing underneath the trades. At least when the futures market was going to trade carbon credits there were potentially real costs and savings for the companies to trade on.

Dec 5, 2017 7:13am

Quoting harsiswanto

Disliked

bitcoin itself is limited. but what if a new "coin" appear, and have much better technology and efficiency than current bitcoin? and with BTC fork like BTCC and BTG, I wonder why people still believe that BTC will continue to rise. in the future, people surely going to do that again

Ignored

Exactly as I mentioned above!

Dec 4, 2017 11:12am

Markets are so interconnected nowadays, the collapse of one, can potentially bring down everything.

Who would have thought the 2008 financial collapse could have stemmed from dodgy mortgages?

Dec 4, 2017 12:14pm — Edited

Just did a quick search...there are 1324 different crypto currencies out there at the moment!!!

Total market cap of ALL crypto has topped 300 billion..which has been generated out of thin air...

Dec 4, 2017 5:43pm

http://www.zerohedge.com/news/2017-12-04/which-16-year-old-math-genius-and-semi-naked-women-sell-first-ever-ico-tranche

Trader#9225

Dec 4, 2017 11:22am

If you turn that chart upside down it looks like the GBP / USD from the past couple of years !!

Trader#A02E

Dec 4, 2017 2:03pm

Pleidian you do realize that central banks print legal tender right ? The US dollar is backed by everything anyone owns on US soil + the biggest military on the planet. Get the difference ?

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