I'm thinking we are in a bubble! And maybe we are at the point like the internet bubble, where the few gems recovered and continue to be high flyers. I think amazon as a perfect example. I think steem will be in the $$$, but it won't happen until all the desperate give up on it.
You are viewing a single comment's thread from:
Good points and I think some companies and projects can survive bubbles for sure. Steemit is one of the few platforms that has actual utility. There will likely be tough times for us all though, if it is a bubble and it ends up bursting.
I'm wondering if anyone remembers the bubble that happened from october 2013 to march 2014. It was in the Mt. Gox market and over the course of 5 months the price of bitcoin rose from 100 - 1300 USD. Do we see that kind of bubble here? Considering it was early on in the cryptocurrency game there are many more tokens now. But, we still have to pay heed to what happened before. http://imgur.com/a/mJPab Looks like a bubble. A 1200% rise in the price of an asset, that holds for a period of time...(the price of btcmtgox didn't fall until after feburary 2014).
Now I know the counter arguments to this, saying that there were currency manipulators playing in the mtgox market, and that the Chinese played a large part in this huge price jump in trying to move dirty money out of China. BUT! It is a market! People will do what they will in a market, and utilize the resources that they have at their disposal, just because you see examples like gnosis, you can't rule that the whole gammit of cryptocurrencies is experiencing a bubble. I'm bullish.
Skrt
Far far from the point of the Internet bubble. When we start seeing billions tossed around in smart contracts which are all hype then we are in something like the Internet bubble. We are seeing 10 million here, 12 million there. And we will continue seeing this because there is massive wealth from Ethereum crowdsale token holders and miners and no where to put it.
Is there a stable Ethereum Dollar yet? No. Is there any token in Ethereum which is considered safe and which pays out a dividend? No? Then the only thing a holder can do when the price goes up is put it into an ICO and try to get even more to beat inflation of Ethers. Only a mature market will provide enough options so that this changes.
And getting in and out of fiat also is not free. When you want to cash out, and if you do so without waiting for 2 years, you get to pay 40% in income taxes. So a lot of ICO token holders and Ethereum crowdsale holders can literally do nothing better than to sit on their stashes for 2 years.
Result? The wealth is trapped with no where safe to go except into ICOs. Call it a bubble but there is no way to pop it and it's far from the stage where it can be. Maybe proof of stake will settle it all down though as holding ETH will give a premium while today it gives a penalty. Cashing out into fiat still give give a penalty though so maybe people complaining about this bubble should be pushing to change the laws so cryptocurrency is tax exempt. I expect if you did that then you'd see billions of dollars cashed out and no more ICO bubbles.