For every dollar that Bitcoin inches higher, the "Bubble" crowd grows louder and louder.
However, it should give some solace to the Bitcoin bulls that another revolutionary idea/company was also called a bubble, for just about its entire existence.
Take a look at some of the old headlines for Amazon dating all the way back to 1997:
Most of the headlines were not favorable.
If fact, for years, Amazon was called things like:
"Amazon.con"
"Amazon.bomb"
As you can see, many analysts and investors in the technology sector did not look fondly upon the Amazon business model dating back two decades ago all the way to today.
Now, Amazon is the largest electronic commerce conglomerate on the planet, growing it's market cap and market share seemingly by the week.
Bubble indeed! (sarcasm font on)
Well, if it is a bubble, it still hasn't popped yet after close to 20 years.
The same kinds of things have been said about Bitcoin, basically since it stormed onto the scene back in 2009.
Mostly coming from a lack of understanding as well as a lack of a traditional valuation method, ie Bitcoin not having any intrinsic value.
This was underscored by Mark Cuban, who for years has been a major Bitcon critic. Almost to the extent that Jamie Dimon has been.
Now, something very interesting has happened, Mark Cuban has become a Bitcoin investor and is now preaching that others should own some as well, though he cautions against putting more than 10% of your investing portfolio in it.
After first bashing Bitcoin for having no intrinsic value Cuban now has this to say on the topic:
"It is interesting because there are a lot of assets which their value is just based on supply and demand. Most stocks, there is no intrinsic value because you have no true ownership rights and no voting rights. You just have the ability to buy and sell those stocks. Bitcoin is the same thing. Its value is based on supply and demand. I have bought some through an ETN based on a Swedish exchange."
It is interesting that Cuban has done a complete 180 from his views just a couple months ago.
Not only some stocks, but gold, silver, and most other physical assets have no intrinsic value either. It's funny how Cuban is just noticing that now.
Though, I guess Cuban changing his views is really not that surprising when you really think about it.
This kind of "flip-flopping" is pretty common with Bitcoin and cryptocurrency.
Check out this comment by Josh Brown written on his blog a few days ago:
"One really important point (from my meeting) was that every one of the four panelists told a story about how when they were first approached with the idea of Bitcoin, they laughed at it. All of them are converts now. In fact, someone at the meeting went on to say that there is not a single person I've ever come across who has done a deep dive in and didn't come away bullish."
That is exactly how I felt as well!
When I first heard about Bitcoin back in 2010, I laughed at it. I thought to myself, why would anyone buy this thing?! It's clearly going to go away.
Except it didn't.
It has now died roughly 27 times since that time and risen to new highs afterwards each and every time.
Bitcoin is a religion.
Josh Brown further went on to underscore the conversion factor at play here:
"If you have ever read the book Sapiens, then you recognize that Bitcoin is a religion - a story we all tell each other and agree upon. Religion is the adoption curve we ought to be thinking about here. It's almost perfect - as soon as someone gets in, they tell everyone and go out evangelizing. Then their friends get in and they start evangelizing."
That is so true, but Josh didn't stop there...
"Bitcoin is like crossfit - the moment you get in you can't shut your f***ing mouth about it."
That is hilarious and couldn't be more true!
I can't tell you how many times I have had friends and family members asking me if I ever talk about anything else besides Bitcoin, Steem, and cryptocurrency.
By the way, the answer to that is a resounding, "No!" :)
To get back to the bubble rhetoric mentioned at the start of this post, I tend to look at it a lot more like George Soros does when he uttered these words back in 2009:
"When I see a bubble forming, I rush in to buy, adding fuel to the fire. That is not irrational."
If Bitcoin and cryptocurrency are in a bubble, and a bubble is what Amazon has been in for the last two decades, I say bring on the bubble!
Stay informed my friends.
Sources:
https://www.cryptocoinsnews.com/tech-sector-called-amazon-a-bubble-since-1997-same-is-happening-with-bitcoin/
https://www.cnbc.com/2017/10/19/josh-brown-goes-down-the-bitcoin-rabbit-hole-commentary.html
Image Sources:
https://pixabay.com/en/soap-bubble-colorful-ball-826018/
https://twitter.com/BrentBeshore
https://pixabay.com/en/cross-middle-ages-rubin-religion-587267/
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