/biz/ - Business & Finance

[Anonymous No.6196220]

Can someone please explain to me why crypto Is a bubble? What makes it a bubble? Why/when will it pop?

[Anonymous No.6196300]

>>6196220
aint nuthin gon pop cept DAT ASS

[Anonymous No.6196316]

>>6196220
Everything that has ever existed is a bubble. Humanity is a bubble, the dinosaurs were a bubble, it's bubbles all the way down. Anybody saying "muh bubble" as an argument is legitimately a drooling retard.

[Anonymous No.6196563]

Think about the dot com bubble. Everyone thought the internet was going to extremely valuable and priced the stocks. Turns out Google/Amazon raped the competition.

So in crypto now all these alt coin promise the moon, likely 99% will be worthless in 10 years.

[Anonymous No.6197067]

It's a bubble since the assets are highly overvalued.
We could use Gorden's growth model or CAPM for pricing and we'd both come to the conclusion that the growth of crypto is an exponential.

The underlying asset is the block chain, are you telling me that people would pay £10,000+ for bytes are rational people?

It's based on this:
https://www.investopedia.com/terms/b/bubble-theory.asp (blind eye is known as 'Rational Bubble' to economists)

https://en.m.wikipedia.org/wiki/Greater_fool_theory

https://en.m.wikipedia.org/wiki/Tulip_mania

Furthermore, if you wanted a crude method of pricing, it would be:
Price of coin = (Utility derived x consumption of coin) /expected utility derived of purchase of another coin x consumption of coin)

And it holds true, since people think these coins are going to moon and that every coin will have 50x growth

[Anonymous No.6197155]

>>6197067
So it's a self fulfilling prophecy until people run out of money to put into the market basically?

[Anonymous No.6197199]

I would eat shit out of that ass

[Anonymous No.6197268]

Price of coin**** = (Utility derived x consumption of coin) /(expected utility derived of purchase of another coin x consumption of coin)


But, if you want to reassure yourself, just imagine the growth of crypto as the growth of a high risk high return market with a low market margin.

The closest thing to this is Penny Stocks, except the coins don't have ownership of the company that produces them, just the underlying asset.

BTC for example, is enticing investors with its capital gains. Investors have their own preference for assets (aka expected returns) and will invest into BTC since it exceeds that preference.

[Anonymous No.6197328]

>>6197067
You’re way too educated with /biz/

They only speak “moon mission”

[Anonymous No.6197346]

FEELS GOOD MAN WHO /OYSTERBOY/ HERE??????????????

TODAY WE ALSO GOT A DEV UPDATE, THE DEVELOPERS ARE ACTUALLY RESPONSIVE AND THEY HIRED 13 MORE EMPLOYEES.

LITERALLY WON THE LOTTERY IF YOU BUY WHILE STILL ON KUCKOIN

[Anonymous No.6197378]

>>6196220
>Can someone please explain to me why crypto Is a bubble?
nope

>What makes it a bubble?
it's not

>Why/when will it pop?
literally never

[Anonymous No.6197486]

>>6197155
Eventually, the returns won't be able to satisfy the investors, who will then pull out and go into another asset (everyone loves cobalt because it's a required metal for electric cars).

My professor said that 'You'll spot the bubble collapse as the exponential growth value cannot be achieved again. You're telling me that you'd stay if you didn't get your 15% growth after you was promised it? Some investors will stay, praying to cash in on the dip in prices, but the investors who left won't reinvest, and the knowledge of this would cause a run on panic'

So once BTC fails to reach its expected growth level twice in a row, cash out.

The issue is on whether you're using a moving average or a G model to assess growth

[Anonymous No.6197585]

I was shilling pfr and prl here for you on /biz since both were 0.07 and 0.01 respectively. Get profit on egas and make me (and you) rich.
Take a look@ https://coinmarketcap.com/currencies/ethgas/