You're dead on here. I think the other issue is many folks who find crypto tend to be skewed toward having less experience in general with investing fundamentals. Don't get me wrong I love the community and it's core values of pushing back against traditional financial and economic systems, but the current crypto climate is like the late 90's internet bubble on steroids. The internet companies usually had a product or service at least that was already working. Yes, many were not profitable and had limited pathways to profitability, but they had a product.
In crypto, people are buying only on concept, this is reckless and beyond just "speculating" it's hysteria. There needs to be something more than a whitepaper, there has to be some tech already built and at least some type of existing asset. Gnosis just screams irrational, especially with Augur already in the market.
Thanks - I think we are very much on the same wavelength.
The massive valuations for things that are little more than an idea (and often not a new one at that) is characteristic of the dotcom bubble.
I think when there is a lot of market exuberance it creates a kind of hysteria where people are afraid of missing out on the next big thing.
This causes people to lose their judgment and it is one of the things that creates bubbles.
I'm with you though that this seems beyond. I think the stories of bitcoin millionaires starting out by buying $100 worth of coins really extends the narrative. Nevermind the current 1st quarter rise of coins/tokens in general. I'm probably in the minority, but I think bitcoin itself is way over-valued. It has minimal utility compared to other blockchain tech at this point. To my eye it just has first mover advantage left.
Other coins are cheaper and faster for financial transacting. Newer coins offer better anonymity. I'm not sure where it shines except that it has a bigger user base and therefore larger group of traders.
Given all the animosity between different camps in the Bitcoin community I am starting to thing that Bitcoin is overvalued for what it is.
Every time I send bitcoin it feels so slow compared to everything else - particularly Steem, but even things like ether wipe the floor with it in this regard.
In its current form it is too slow to ever go mainstream (at least for payments).
What if the US Federal Reserve note is overvalued?
It likely is, however that still doesn't call for leveraging your liquid FIAT assets by tossing them into a nebulous crypto token with little or no basis.
Exactly it simply swapping one overvalued asset for another.
It's not even that. There are less options. Ethereum isn't a mature financial ecosystem where there are any safe investments or low risk choices. It's all risky! The people involved are involved because they took the risk. The people who made the most money took the most risk. So how can you be shocked if there is more risk taking when risk taking is the only thing offered by Ethereum?
Even Digix is risky.
Yep, true enough, It's all a big risk, however there are somewhat calculated risks and there is wild, pull-out-of-your-ass-and-throw-darts risks. This feels like the latter.
Yes I agree and I try to avoid the obvious scams and bad decisions. The truth is even smart decisions can end up with bad consequences because you cannot predict the moves of the regulators, or the bad actors.