Bitcoin may have been in a bubble at some point, but it's not anymore and hasn't been for some time
It makes me laugh when I see seemingly very smart people still say things that don't make sense regarding bitcoin.
One that I often here is something along the lines of...
"sure bitcoin is doing well now, but when this bubble pops, look out..."
It boggles my mind that people still seem to think that bitcoin is in a bubble.
They said it was in a bubble at $100 a coin, $1k per coin, and $20k per coin.
They are calling it a bubble still at $24k per coin, at what point is it no longer in a bubble according to them?
Based on previous well known bubbles, bitcoin hasn't fit the pattern for some time...
Check this out:
Remember Tulip Mania or the South Sea Company bubbles?
Probably not since we weren't alive back then, but they died after a couple years while bitcoin continues going strong after more than 12 years.
Can't teach an old dog new tricks...
I think the more likely conclusion here is that these well respected economists and financial celebrities haven't really done their homework on bitcoin.
They don't know that it has doubled every year on average.
They don't know that it has basically gone form the lower left to the upper right ever since it was created.
(Source:
)https://twitter.com/MMCrypto/status/1342416016412991489
- MMCrypto
They don't know that the wallet addresses holding at least 1 BTC continues to grow at a very healthy organic rate.
They don't know that institutions are starting to view it as a legitimate asset worth holding due to its asymmetrical returns, it's uncorrelated nature, and it's hard supply cap running on a decentralized blockchain that makes it a better store of value than just about anything else in existence.
They simply don't know.
All they look at is the price and think wow this has really run up a lot, it's probably due for a major correction.
But, when something has no earnings or cash flows, how exactly do you claim it's overvalued or undervalued?
There really is no way to value bitcoin.
That means its technically never overvalued or undervalued.
The rational the bulls use is that it has a very good chance of becoming a largely owned digital store of value which means it currently has the wrong market cap attached to it considering gold alone has over a $10 trillion market cap.
Stay informed my friends.
-Doc