Bit coin bubble – Can not be compared to stock market bubble

06 Jun , 17 By account

China, Japan and South Korea Aunt love bitter coins, together to raise the price of Bitcoar, just rose in May,%, despite the market price of special currency bubble doubts, but the sports betting site Betfair co-founder Josh Hannah wrote in the “coindesk” website that Bitcoin has its own characteristics that can not be compared with stock market bubbles.

For example, when the Internet bubble, investors can be through the business, profit expectations, to assess whether the stock was overvalued, but Bitcoin is not so measured.

As an independent unit of value, the overall supply of money is not affected by economic productivity, and it also means that the value of Bitcoin can grow at a faster rate than most real-world firms because it is Product or service to solve.

If the world treats bitmaps as gold, you know that gold is a reliable billions of dollars worth of value, then the value of the deal should be 100-1000 times.

Bitcoin is a fixed supply, making it a scarce product, and its value is directly related to how many people hold money. Each additional speculator determines that Bitcoin is valuable and will increase the potential value of Bitcoin.

If the bit currency is successful, there may be a series of breakthrough points, due to a wide range of new acceptance, will be able to jump its value.

Hannah reminds investors that if only due to fluctuations in the price of Bitcoels and frequent access, it is easy to see short, may be lucky enough to make some quick money, but Bitcoin, but there are hundreds of times, or even thousands of times the potential of rising, if Warren Buffett figured , But also to invest in Bitcoin, that the price has to rise up. Grab at this time to sell, waiting to regret it.