Bitcoin’s ‘Bubble’ Could Actually ‘Linger for 100 Years

in #bitcoin7 years ago

Yale economics professor and Nobel Laureate Robert Shiller has admitted in an interview with CNBC Thursday, Jan. 18., that he now “doesn’t know what to make of Bitcoin ultimately” after earlier calling it “the best example of a bubble”.

Shiller overall remains skeptical, stating that “[Bitcoin] might totally collapse and be forgotten and I think that's a good likely outcome but it could linger on for a good long time, it could be here in 100 years.”

This is another big win for bitcoin and altcoins. 100 years of "bubble" existence? I'll take it! It only needs another 20 years (max) for bitcoin to reach its full potential and become the digital gold.

Bitcoin as digital gold? Many people are skeptical about this concept of digital gold since they question bitcoin's (lack of) inherent value. It's one of those "wall" that bitcoin needs to face and overcome. After all, doubters questioned the Internet's inherent value before. Also questioned dot.com companies (in the likes of facebook and twitter) inherent value. And gold was no exception.

What is the inherent value of gold?

It may surprise many that several financial advisors of recent past believed that gold and silver have no inherent value hence advised their clients to stay away from these precious metals. To them, those who claim that gold or silver as a safe asset and store of wealth have been mislead by superstition.

To understand their argument, we need to compare gold to commodities like wood, grain and oil. Lumber (wood) can be used to build houses and furniture, grain can be used as food, and oil can be turned into energy for a variety of industrial purposes. It's easy to see the inherent value in these things.

Gold on the other hand, you can't use it to build houses, nor eat, nor drive a car with it. Its value must come from somewhere else right?

Is gold's shiny property gives it its inherent value? After all, it has been used for centuries in the crafting of jewelry and other ornaments. It has always been "desired" for these purposes. Many wars were waged in the name of gold.

But no. It is neither the glimmering earrings nor necklaces that comprise the majority of gold’s inherent value. It's something else.

Their value comes from nothing less than their efficacy as a medium of exchange – as a form of money. This may sound crazy at first, or perhaps incomprehensible to claim that gold is valuable because it can be used as store of value, but this is precisely the point. Precious metals, through their very nature, are simply commodities that are best suited to be used as money.

Think of this for a minute. Throughout the Roman empire, before the value of precious metals were accepted and appreciated, Roman citizens used salt as the medium of exchange (Roman money). In fact the word "salary" was derived from "salt" as workers at that time received salt in exchange for their labor. But because of its property (it dissolves at high temperature in your pocket!), the Romans had to find a better way of exchanging things. This is where gold and silver coins came in. Would you rather carry with you several sacks of salt or several gold and silver coins?.

If gold's inherent value comes from its being a more efficient and secure form of exchange, surely bitcoin (and altcoins) falls in the same token. In fact, gold and bitcoin share a lot more similarities than salt and gold.

The Gold of the Digital Age:

Sources:
www.cointelegraph.com
www.sbcgold.com
Money Morning Australia
lsned.com

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This post was resteemed by @steemvote and received a 37.95% Upvote

I also like to believe that this will be the case. I've put in some money in bitcoin, and I intend to withdraw it long term. I'm banking on the idea that it is the newest "gold". Fingers crosssed.

It's the best move one can make, everything evolves, even money! this is the evolution of finance as we now know it.
Cryptocurrency will replace the future of finance, just like the cell phone replaced the pay phone.

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I also think it is in the interest of the Bitcoin Whales to make Bitcoin the digital gold and they will push it there.
Great read thanks!

We will always love Bitcoin as a top currencie, but there is a lot of coins with much more potential... So I don´t think that the bubble will take 100 years, because in that case that almost can´t be called a bubble!!

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Skeptical are the ones that don't understand it. Blockchain and cryptocurrencies (those who hold real values by solving global issue, either economical, social or other human related ones) are the future at global level and we need to have that clear once and for all. The time will tell and will prove the power that it holds as behind all of this is the power of the people involved or supporting them.

Hopefully last as long as possible with a stable value brother

Won't be stable, that much I can nearly guarantee.

This post has received a 13.58 % upvote from @boomerang thanks to: @sandalphon

we are def still in the infancy of the crypto space....this tech movment will trump(no pun) the dot com era 100 fold "imo"...the funny part in all of this is, the fact that majority of individuals in the east and west have thousand dollar computers in the pockets with instant access to anything, and yet to these say people crypto seems sooooooooooo weird"reallllly"...good post keep them coming. "peace"-THA BUILDER

Bitcoin, who made billionaires and now making them back to their original feel.

But let me tell you one thing very clear that this business is going to ruin by some GAEMS who have so many followers and now their target is BTC.

If Bitcoin is a bubble, I am ready to take the risk. Either I loose my average investment or I make huge gains. I believe the later will be the case. Meanwhile, trading alts against Bitcoin is still great and brings good return.

But your measuring your gains in the biggest bubble of them all:US Federal Reserve Note
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That is great! The funny thing about value is that it is all perceived. We all agree that gold is worth alot, so it becomes worth alot. With Bitcoin and alt coins it is all happening because multiple people see value in it. I love it! I feel like I am on a new crazy ride...and I like where it is headed! 🙃

Money is based on faith. Very soon people will start to create user generated tokens and making currency swaps with one another. Why have faith in a central money authority when the "people" can have faith in each other. :)

That is great! I am pretty excited to see where it all goes. I believe in people!

I could live with a 100 year bubble.

Vince&Jules.JPG

Nothing would suprise me with bitcoin just when i think i gave an idea about it boom it does somthing else crazy its a great ride dont forget your helmet lol

Great points about why precious metals are a superior store of value. Like others have pointed out, if Bitcoin remains the crypto equivalent of gold for 100 years, I'd hardly call that a bubble!