Remove ads

Introducing the LemonFools Personal Finance Calculators

are we headed to a Bitcoin bubble

Investment discussion for beginners. Why you should invest your money, get help getting started
Aldumbell
Posts: 6
Joined: April 28th, 2019, 8:57 am
Has thanked: 2 times
Been thanked: 2 times

are we headed to a Bitcoin bubble

#233698

Postby Aldumbell » July 3rd, 2019, 3:11 pm

They say a picture is worth a thousand words so first here are some screenshots of my financial news watchlist:
http://prntscr.com/oa29k3
http://prntscr.com/oa29r1
(you can see my full bitcoin watchlist here https://www.cityfalcon.com/watchlists)
However, there are some serious voices in the field of crypto, especially Bitcoin, such as Nouriel Roubini, that claim that Bitcoin is not secure, not decentralized and not even scalable. He even released this angry twit: http://prntscr.com/oa2hs0
My question to you is, as people with at least some experience, is really off or is there something substantial in his claims?

5pFredo
Posts: 25
Joined: July 3rd, 2019, 5:58 pm
Has thanked: 11 times
Been thanked: 3 times

Re: are we headed to a Bitcoin bubble

#233742

Postby 5pFredo » July 3rd, 2019, 6:09 pm

Hi Aldumbell

I agree its a bubble, but I dont think scalability will be the reason it collapses.

Im thinking it will more likely to collapse due to one of the following.

1) Hacking vulnerability in some of the exchanges which ends up effecting a huge number of users.
2) Government regulations come into force, something like Money Laundering & Terrorism Financing.
3) Richest BTC holders dumping and thus crashing the market.

Please post your theories... its a interesting issue...

scrumpyjack
Lemon Slice
Posts: 476
Joined: November 4th, 2016, 10:15 am
Has thanked: 18 times
Been thanked: 131 times

Re: are we headed to a Bitcoin bubble

#233751

Postby scrumpyjack » July 3rd, 2019, 6:31 pm

It's only going to take a few more years before the ability to 'mine' new bitcoins evaporates and the power consumption needed to mine them exceeds the world's electrical generating capacity?! As that happens the validation of transactions winds down and the whole thing becomes unviable. End of bitcoin!

By then we'll have ZuckerBucks to replace them

5pFredo
Posts: 25
Joined: July 3rd, 2019, 5:58 pm
Has thanked: 11 times
Been thanked: 3 times

Re: are we headed to a Bitcoin bubble

#233753

Postby 5pFredo » July 3rd, 2019, 6:35 pm

Scumpy,
It's only going to take a few more years before the ability to 'mine' new bitcoins evaporates and the power consumption needed to mine them exceeds the world's electrical generating capacity?!


Where you see this as a negative to price, I see it as a positive.

The disallowance to mine new coins means the current ones become more scarce, which will only push up price.

As for scalability, you are correct but only as it stands, because it is possible to change the system, therefore it will likely be addressed and altered to fix this issue.

Rover110
Posts: 20
Joined: November 6th, 2016, 4:06 pm
Has thanked: 3 times
Been thanked: 5 times

Re: are we headed to a Bitcoin bubble

#233879

Postby Rover110 » July 4th, 2019, 10:36 am

5pFredo wrote:The disallowance to mine new coins means the current ones become more scarce, which will only push up price.

As for scalability, you are correct but only as it stands, because it is possible to change the system, therefore it will likely be addressed and altered to fix this issue.


As I understand things, there are two actions in "mining".
One is the generation of bitcoins, and yes the reward of doing this is going down so eventually it will not be worthwhile.
The other, which is essential to the operation of bitcoin is the process of adding transaction records to Bitcoin's public ledger of past transactions*.
It is only with a vast and distributed network of people processing these transaction records that Bitcoin transactions can be trustworthy without a named "bank" to honour the promise of value.

If most people stop mining, it will become easier to fake bitcoin transactions. And then who will be willing to accept bitcoins as payment?

- Rover

*Source: Bitcoin Wiki

doug2500
Lemon Slice
Posts: 265
Joined: November 4th, 2016, 11:51 am
Has thanked: 43 times
Been thanked: 77 times

Re: are we headed to a Bitcoin bubble

#233909

Postby doug2500 » July 4th, 2019, 12:14 pm

The BBC are reporting today that bitcoin's energy consumption now equals Switzerland's! I think it includes both 'mining' and transaction monitoring.

Surely in the current climate this must be a big threat to bitcoin?

SentimentRules
Lemon Slice
Posts: 291
Joined: July 6th, 2019, 11:28 am
Has thanked: 32 times
Been thanked: 14 times

Re: are we headed to a Bitcoin bubble

#234726

Postby SentimentRules » July 7th, 2019, 9:43 pm

It's average range movement in a month is 2500 dollars. And nearly 1000 dollar range per day.

For the gamblers.

LooseCannon101
2 Lemon pips
Posts: 122
Joined: November 5th, 2016, 2:12 pm
Has thanked: 164 times
Been thanked: 66 times

Re: are we headed to a Bitcoin bubble

#235017

Postby LooseCannon101 » July 8th, 2019, 9:22 pm

I believe Bitcoin and all the other crypto currencies will go to zero when the bubble bursts. By zero I mean nothing at all as the whole thing is a trendy fad with no regulations and no government backing.

A UK bank account (up to £85k) is a much better store of value and won't vanish at the keystroke of a malevalent computer hacker.

I've been reading a book by James Rickards entitled - The New Case For Gold, in which he advocates holding physical gold as a cash alternative. Of course there are numerous problems - security probably being at the top of the list. Governments especially the Chinese, are currently buying hundreds of tonnes of gold each year. I would take more notice of this buying activity than that of foolish people buying Bitcoin.

runnygum
Lemon Pip
Posts: 65
Joined: November 4th, 2016, 9:35 pm
Has thanked: 11 times
Been thanked: 24 times

Re: are we headed to a Bitcoin bubble

#236067

Postby runnygum » July 12th, 2019, 12:31 am

Well with Libra offering a 100% backing with hard (fiat) currency. Bitcoin is certainly worthless.

If Libra takes off the government will either ban it or regulate it so much that the costs of transactions they are trying to reduce and the social benefits to the unbanked will be eliminated.

Same old story. If it moves tax it or regulate it.


Return to “How Do I Invest”

Who is online

Users browsing this forum: No registered users and 2 guests