It's interesting to think about whether the word "bubble" even has any conceptual meaning when applied to crypto.<p>A bubble means prices are historically high relative to fundamentals -- that the part of the price explained by speculation is much higher than usual.<p>But crypto has no fundamentals. Its price is determined entirely by speculation. It doesn't pay dividends or interest that you can model a price on.<p>So the idea of an "inflating crypto bubble" seems conceptually incoherent. Sure you can say that crypto is <i>only</i> bubble, but that doesn't really add any information. The bubble can't be "inflating" since there's no ratio to a non-bubble version.
Michael Burry has called BTC a "bubble"<p><a href="https://en.wikipedia.org/wiki/Michael_Burry" rel="nofollow">https://en.wikipedia.org/wiki/Michael_Burry</a><p><a href="https://fortune.com/2021/03/01/bitcoin-bubble-michael-burry-big-short-investing-btc/" rel="nofollow">https://fortune.com/2021/03/01/bitcoin-bubble-michael-burry-...</a><p><a href="https://nymag.com/intelligencer/2021/10/why-the-big-short-guys-think-bitcoin-is-a-bubble.html" rel="nofollow">https://nymag.com/intelligencer/2021/10/why-the-big-short-gu...</a><p>Elliott Investment Management has previously called Nvidia's stock "overhyped"<p><a href="https://en.wikipedia.org/wiki/Elliott_Investment_Management" rel="nofollow">https://en.wikipedia.org/wiki/Elliott_Investment_Management</a><p>Elliott is the hedge fund source for this FT article<p><a href="https://finance.yahoo.com/news/hedge-fund-elliott-says-ai-132813734.html" rel="nofollow">https://finance.yahoo.com/news/hedge-fund-elliott-says-ai-13...</a><p><a href="https://news.bloomberglaw.com/esg/elliott-says-nvidia-is-in-a-bubble-and-ai-is-overhyped-ft" rel="nofollow">https://news.bloomberglaw.com/esg/elliott-says-nvidia-is-in-...</a>
2021: ”Elliott Management wants nothing to do with bitcoin, says top exec who predicts the Fed will launch an 'electronic dollar' that will crush crypto.”<p>I guess maybe they shorted a little too much and now trying to save their own ass
Honestly, at this point the entire crypto industry is just leechers and con artists trying to rug-pull each other. And they elected their leader to the white house. I personally don't mind the whole system going down in flames. Perhaps when the dust settles and we need to rebuild from square one, we could get some normalcy again.
(Semi-)jokey observation:<p>> <i>The main argument for a Strategic BItcoin Reserve seems to be that Bitcoin holders worry about an impending shortage of greater fools and need the US government to act as the greatest fool of last resort.</i><p>* <a href="https://twitter.com/davidfrum/status/1870564077535470079" rel="nofollow">https://twitter.com/davidfrum/status/1870564077535470079</a>
i suggest everyone who want to know the nature of crypto coin to read Das Kapital<p>The modern sovereign credit monetary system and the rise of financial innovation products have led most people into the illusion that "commodities are money." However, the truth is quite the opposite.<p>A very simple perspective: Bitcoin prices are highly correlated with the stock market.<p>However, this does not mean that cryptos are not worth investing in. It just means they are not inherently more magical than other virtual financial products—at least for now.
It's not a bubble anymore, as criminals, immigrants, speculators or even countries like Russia and N.Korea deeply rely on it, which make it valuable.
The US is now officially a banana republic with nuclear weapons.<p>Want to reward your oligarch supporters? Pump bitcoin and AI and infiltrate the government organizations with the blockchain.<p>The oligarchs want data centers in Greenland (and feel like in a Tolkien novel, which is the whole scope of their education)? Threaten EU vassals to take it.<p>The EU needs to decouple from the dollar, get a strong nuclear arsenal and end taking instructions against its own interests. Block the large US tech companies, which are largely for entertainment anyway and trade with China, which produces real things.
How does crypto eventually die?<p>Do people en masse suddenly decide they will never buy or sell crypto, because the price has gotten so high any % gains are going to be way smaller than other investments so what’s the point?<p>Will birth rates fall so much that the population of naive young people, who are the main buyers of crypto, won’t be enough to sustain the whole scheme?