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Bitcoin Bubble - If and When?

Discussion in 'General Discussion' started by cryptodude, Feb 17, 2018.

  1. cryptodude

    cryptodude Master of Crypto Staff Member Super Admin Premium Member

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    Do you guys think bitcoin is a bubble that will eventually pop indefinitely? Do you see similarities between cryptocurrencies and the dotcom boom?
  2. CryptoRyuzaki

    CryptoRyuzaki Scholar

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    Yes, I see lot of similarities between the dotcom boom and cryptocurrency.

    For people who haven't heard about dot com boom, here is a short version:

    Similarities between dot com boom and cryptocurrency are
    1. There was a sudden and dramatic interest from the general public on the dot com boom and cryptocurrency.
    2. There was no shortage of funds for a new dot com market and new cryptocurrency ICOs.
    3. New dot Coms and new cryptocurrency ICOs are created left and right at a dramatic pace.
    4. Not sufficient thought seems to be put on ROI.
  3. xyzzy

    xyzzy Master of None Staff Member Super Admin

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    "The goal was to"Get Big Fast". They forgot one key factor, Return on Investment. The tipping point was when US Federal Reserve increased interest rate 6 times and the economy began to lose speed. The investments began to dry up, and the start up companies collapsed. had spent $135 million of its venture capital and according to CNET, the greatest dot com bust in History."

    Based on your link, it sounds like the burst of the bubble was caused by the Federal Reserve. They have 3 planned interest rate increases for 2018, with a potential for more.

    "Luckily, inflation seems to be finally appearing, and this will allow new Fed Chair Powell to raise rates in 2018 at a measured pace like former Fed Chair Yellen. But, as was the case in 2015 and 2016, unforeseen circumstances are likely to necessitate deviations from the preferred path. I, for one, wish Powell luck, but strongly suspect that the economy will be slightly stronger, and that inflation will rise faster than expected, necessitating four interest rate rises — one more than the Fed currently expects. No matter what happens, 2018 will be bumpier than the economically serene and placid 2017."

    CryptoRyuzaki and MAGA like this.

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