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Bitcoin: The World’s Most Dramatic Bubble Ever?

By The Wall Street Journal

First it was tulips. More recently it was tech stocks and then the housing market. Lately, it’s all about bitcoinRead full story

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  • Leigh Drogen
    Leigh Drogen Founder & CEO at Estimize, Inc.

    Bubbles don't form when everyone is screaming bubble like this. No matter what you think of Bitcoin, this is not the environment in which a bubble takes place. Bitcoin will crash 80-90% many times from here to the eventual full adoption price, but that doesn't make it a bubble.

  • Jun Kato
    Jun KatoNewsPicks Inc (JP)

    Well, first of all, it is not an equity nor bond, where valuation are done on discounting cash flow. I think finding intrinsic value of a currency is extremely hard, and should it be a diversified one (like bitcoin), even harder.

    If you believe there is a value, there is a value, and if you don't, there isn't a value. Fully depends on "how many people" believe in it.

    ... Wait a minute, I think I've heard about this. Yes, the classic Keynesian beauty contest.

    Not sure whether this is a bubble or

    Well, first of all, it is not an equity nor bond, where valuation are done on discounting cash flow. I think finding intrinsic value of a currency is extremely hard, and should it be a diversified one (like bitcoin), even harder.

    If you believe there is a value, there is a value, and if you don't, there isn't a value. Fully depends on "how many people" believe in it.

    ... Wait a minute, I think I've heard about this. Yes, the classic Keynesian beauty contest.

    Not sure whether this is a bubble or not, or whether it will bust or not. But history tells that

    1. Bubble collapse at some point of time

    2. Shorting it arguing that "it is a bubble" (fundamental short) is typically risky, because it is a bubble by nature and nobody knows whether it is a bubble or not until it collapse (and should it not be a bubble it will not collapse)

    3. Bubble could be a fully illusion (like tulip) or too fast (like NASDAQ, which it recovered 15 years later)

  • William Lewis
    William LewisCEO at Dow Jones & Company

    It is something else beginning with B

  • Austin Wood
    Austin WoodAssociate at Endeavor

    Bitcoin doesn’t have to be a bubble if financial institutions decides to integrate it into existing infrastructure. I’m still hesitant to think it’s a bubble even without that.

  • Bitcoin is bubbling up like the 17th-century tulip market. Amazing transformative technology; I hope the bubble bursts soon so that we can move on to the real value of these crypto currencies.

  • Just wait until people start getting bills from the IRS. That should be an interesting development.

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