If Bitcoin is a Bubble, So Is Everything Else!



Bitcoin: Is it a bubble or is it not the bubble? Perhaps this is NOT the question we should be asking. Instead, maybe we should be looking at other asset classes and seeing how all of them seem overvalued relative to their history. Loose monetary policy and easy credit has led to some odd market behaviors in the past few years and has led to investors chasing both yields and returns.

As a result, many investors are adding alternative, nontraditional assets to their portfolios, including Bitcoin. Many people cite the dot-com bubble as evidence that Bitcoin is a bubble, but there are many differences. The largest among them is the size differential between the size of crypto and the tech market back in 2000. This is the result of traditional investors having nearly zero idea how to gain exposure to Bitcoin. The premium for the Bitcoin Investment Trust is evidence that these investors want in, but don’t any real avenues to do so and hence the approval of an ETF should lead to a huge increase in capital inflows.

In addition, financial advisors are beginning to look at the place of Bitcoin in the modern portfolio due to its low correlations with other asset classes. Yet, it still behaves similarly to gold in short-term volatility spikes during times of geopolitical instability, suggesting it has some hedging qualities. It also provides a safe haven for countries with no real alternative such as Venezuela.

The point is, there are tons of demand sources for Bitcoin. Meanwhile, equity valuations continue to extend, bond prices are still bubbly, and real estate is back to where it was in 2008 and securing mortgages is becoming easier again. Forget the mention of student loan debt.

If you come from traditional finance, give it a second thought as to whether or not Bitcoin is a bubble. While there is much “irrational exuberance,” there are many merits to the technology and value in the service it provides. For those of you coming from crypto, I hope you can also open your eyes to the possibility that Bitcoin can become overvalued too as the result of speculative behavior, rather than saying Bitcoin is going to $1,000,000 despite the disconnect between the increased market cap and number of daily transactions.

As usual, I hope you all enjoy the video. I’d love to hear your thoughts in the comments. I have posted the article for this video in 3 places. Pick your poison!

Medium: https://medium.com/@Truth_Investor/if-bitcoin-is-a-bubble-so-is-everything-else-34481be46349
Steemit: https://steemit.com/bitcoin/@cryptovestor/if-bitcoin-is-a-bubble-so-is-everything-else
Seeking Alpha: https://seekingalpha.com/article/4114643-bitcoin-stocks-bonds-houses-happy-bubble

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36 thoughts on “If Bitcoin is a Bubble, So Is Everything Else!

  • October 19, 2017 at 1:59 am
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    I hope you all enjoyed the video! I'm going to start posting more updates on my Twitter now too: https://twitter.com/Truth_Investor.

    Feel free to follow me. I also have a corresponding article posted with this video. Check the description to find platform of your choice. Here's the link for Medium: https://medium.com/@Truth_Investor/if-bitcoin-is-a-bubble-so-is-everything-else-34481be46349.

    Looking forward to your comments as always. Thanks for watching!

    P.S: If you'd like to help market the article / video, then I'd love any retweets: https://twitter.com/Truth_Investor/status/920831124531765248.

    Reply
  • December 15, 2017 at 5:00 am
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    I've heard so many people say bitcoin is in a bubble. I say what's not in a bubble? Fiat is in a bubble all money is in a bubble.

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  • December 15, 2017 at 2:57 pm
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    Damn this is a really good video. Like how you explain both sides of it. Subbed!!

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  • December 16, 2017 at 6:45 am
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    in other words its all fiat, just with different names, it will all evaporate. real economy money vs investment money

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  • December 16, 2017 at 11:29 pm
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    Just purely wondering, do you come from wealth management or have the CFA charter?

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  • December 17, 2017 at 7:14 am
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    So very true… https://youtu.be/wzKb2iw9BBw?t=19m26s this is a completely new animal in the market. But now, Wall Street have their hands on it. So I hope it dosesn't lend its self to become a playtoy for Wall Street to do with as they have for all the other markets they have disrupted, in the past.

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  • December 18, 2017 at 1:22 pm
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    Emotion, that is what scares me about Bitcoin. I remember 1999, people became emotional and defensive at the mention of the word bubble. Mention bubble in a Bitcoin crowd and what will you hear? EMOTION. If someone told me that one of my investments was in a bubble I might disagree but I would listen, not cover my ears and babble. Too much emotional connection in too many Bitcoin investors scares me.

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  • December 19, 2017 at 8:15 am
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    remember that the 6 Billion People that havent been able to participate in any sort of financial institution can now be there own bank.

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  • December 19, 2017 at 3:18 pm
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    Love the videos.

    You mixed up when you talked about Nominal vs. Real Values at first.

    Real values are adjusted for time and inflation.

    Nominal values are raw dollar valuations.

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  • December 23, 2017 at 6:23 pm
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    What's the point of this video? It's like when you're caught murdering someone, you point at another murderer and say, "But he killed someone too!" – Doesn't change the fact that you're still a murderer.

    Just because other bubbles exist doesn't change that Bitcoin is a bubble.

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  • December 25, 2017 at 12:56 pm
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    Where do I go to learn how to understand anything ur talking about

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  • December 28, 2017 at 1:42 am
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    So, bottom line: Loose monetary policy (ie low interest rates) are causing many assets like precious metals, equities, collectibles, real estate, antiques, crypto to appreciate?

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  • January 2, 2018 at 12:55 pm
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    Its basically a gamble. No one can truely know if it's a bubble or not, and strong arguments can be made for and against it being one. For me personally I believe in the technology, I love the communities, so I'm more confident throwing money into this great big experiment and watching what happens.

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  • January 4, 2018 at 2:52 am
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    once more, awesome thought spoken in a well and relax manner, thank you a lot!

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  • January 7, 2018 at 11:28 am
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    I truly believe that in 20-25 years, crypto currencies will become one of the most most popular ways of paying for goods and services. Of you said in 1950 that in 30 years time you just need to carry a plastic card to pay money that you don't even have in your account, then everyone would have laughed.

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  • January 9, 2018 at 5:45 pm
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    "This time it's definitely the end of BTC!" – nervously says the creator of this video for the 8th time in a row.

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  • January 12, 2018 at 11:58 am
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    Off topic, but If you look at the masonic symbolism of the majority of these coins, it's pretty clear who the players are. People can call it decentralized all they want, our strings are still being pulled. If you people don't think so, wait until the media starts hyping ripple again, and watch how fast the sheeple respond. McAfee, give me a fucking break people. Thanks for the information man.

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  • January 14, 2018 at 5:28 pm
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    BITCOIN now is like what the internet was back when it was in it's infancy CORRECT , it's a game changer .

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  • January 15, 2018 at 7:38 pm
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    your videos are too technical, you need to explain more what you are talking about so the layman can understand.

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  • January 18, 2018 at 8:55 pm
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    Crypto Investor, I really enjoy and value your videos. Please keep making them. It's nice to know there are other intelligent people out there who is seeing and understanding what is going on…. Keep putting out the good information. It is valuable for everyone who watches. This guy knows what he's talking about everyone. Pay attention, learn and profit.

    Reply
  • January 22, 2018 at 6:57 pm
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    I've been making comparisons to my bullish friends regarding comparisons to to the dotcom bubble in that the tech might be there (Debatable in some applications of the cryptocurrencies), there is a lot of filth that will sink the good ideas whenever the overall market cools off. Looked for a video to explain because we are an ADD society, and here you are, 3 months earlier than me. Subbed, keep it real bro.

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  • January 26, 2018 at 1:56 am
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    Crypto Investor, hi, i am a first time "gambler " in cryptocurrency. Can you advise me on, which is the safest and overall best platform to buy and sell crypto coins such as BTH and ripple. Also can you make a video about Crypto Management Funds, such as Crypto 20.
    I realy enjoy your videos, would you like to do some about stock exchange?

    Reply
  • January 26, 2018 at 4:53 pm
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    There's going to be some serious altcoin fatique in the nex 10 years . MOST will die and the value comes BACK to bitcoin .

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  • January 27, 2018 at 2:56 am
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    Bitconnect a ponzi? What is this devilry? 😉

    Reply

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