Gordon
I don't think anyone could be that stupid to borrow to buy Bitcoin????
Brendan
The total Market Capitalisation of Bitcoin (at a €10,000 price) is €21bn makes it equivalent to the 25th largest company. Just larger than VISA (funnily enough a payments company) and just smaller than Walmart.
So while it may be a bubble, and the fastest expanding bubble in history it is not (yet) a very large bubble.
Hi Cremeegg,
I think the €21bn market cap is a fair way out (......would have been right at some stage towards the start of the year!). Of course, many around here believe it's just a matter of time before such mkt cap (and substantially lower) will be re-visited. Did you see that the price is up 20% since Saturday morning, though?
I would be interested in hearing how you have concluded that it is a gamble and not an investment?
....All I'm asking is for posters to please advise when you feel the price reached bubble levels and why? ....
[There is a related but very different question - what is the maximum upside in Bitcoin's price that people can envisage from here? Again, I'd appreciate your reasons.]
If I asked you to buy 100 bitcoins right now on the condition that you must hold on to them for 1 year - what is the maximum that would you would be prepared to offer. As it's the weekend, I'll make it easy for you!!
a) Not interested at any price
b) €100
c) €1,000
d) €10,000
e) €100,000
f) somewhere north of €100,000
....They ignore the evidence and reason.
Brendan
Bitcoin is worthless. It has no intrinsic economic value.
Hello Mr. Burgess,
The obvious flip side of that coin though, is that if we accepted the evidence and reason every time then we wouldn't be able to get on a plane and take a flight etc.
But unlike any other currency there is absolutely nothing whatsoever behind it other than believe and greed. If someone was to come up with a better Bitcoin tomorrow and it gained traction, what would your Bitcoin be worth then???
Or if it was revealed that a bug in some of the basic validation algorithms had a allowed hackers to release millions of new coinage into the system and that an up coming bug fix would clearly identify if the coinage held by an individual was valid or not
You say if they figure it out, but we know there are already detectable forgeries and we don't/won't know if there are undetectable forgeries. We have no way of verifying how much of any national currency exists in circulation, at least with bitcoin that aspect is transparent.Ditto forgery of currencies. If some forger figures out a way to forge paper currency, they can release millions of notes into the system. (Arguably the money-printing scam of QE is as close to devaluing fiat currencies as anything).
I don't think there is anything backing the euro, dollar, sterling, yen, etc, other than confidence. Confidence that buyers and sellers will accept those currencies, either in paper form or electronic form. It is the same for bitcoin.
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