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Originally Posted by Rusty
I'm an investor. I made enough to retired early though mutual funds, 401K, and stocks. I've read both sides about bitcoin and others like it. My feeling is that it's in a bubble right now like the tech stocks was years ago. Remember the dot.com bust?  It's all speculation that drives the price. People are holding on to it. Not spending it like money. Treating it like stocks. The idea behind bitcoin is that there is ONLY so many to be mined. It's not an infinite number. The rumor is that the creator of bitcoin is holding a couple million bitcoins. Waiting for the right time to dump them. Making a killing on them and breaking everyone else. Bitcoin has no real assets. Nothing that you can touch. If a solar flare or EMP takes down the grid. What are you going to to? Like it was said before. It's hard to change bitcoin to cash. And not many places will take it. |
I agree with you. Bitcoin itself actually uses outdated technology in comparison to other cryptocurrencies. Some individual coins have potential while 95% of them will disappear after the initial big boom for coins that is happening now because they won't have a real world use. Some of the coins are developing actual products that will or will not be accepted in the future. Even if USA places heavy taxes there is still the rest of the world to decide whether or not they will be accepted.
With regards to the bubble. I agree that it is a bubble now because there are thousands of new people buying into crypto and holding for now. One thing I want to point out is that the total money held in crypto now is only 750 Billion while NYSE alone is 21 trillion. So is it really still a bubble? Would it be considered a small one if so? I am too young to remember the dot com bubble details and numbers to be able to compare.
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