Sunday, December 10, 2017
When the Mainstream Media Says There's a Bubble in Bitcoin....Is There?
Another curious observation I had about bitcoin.
It's meteoric rise recently has made every MSM outlet an expert and alarm sounder about bitcoin, it's risks, and how bubbly it is. But then it dawned on me...
Wasn't it these same people that couldn't see the housing bubble right in front of their faces in 2007?
Weren't these the same guys that would laud the latest Dotcom IPO, measuring its value in terms of Price to SALES because there were no earnings or profits in 1999?
Isn't is the same people who painfully, tooth-pullingly, are sheepishly admitting in 2017 that there MAY just be an education bubble?
You have the New York Times, Fast Company, even TIME for god's sake, nearly every tapioca pudding, dying MSM rag warning about bitcoin...
but these guys couldn't tell you when there WAS an actual bubble the past three times when these bubbles were slapping their dicks in these journalists' faces.
This makes me wonder, since their ability to predict and identify bubbles is so bad, wouldn't this actually be a GOOD sign for Bitcoin? A vote for the camp that bitcoin is NOT a bubble?
The reason I bring this up is because journalists and journalism majors are horrible economists. They're bandwagoners. They're not capable of genuine thought and haven't been since the damn 60's. This doesn't mean that I don't think bitcoin is in a bubble (I frankly have no clue what the price should be), but I do know your average journalist banging out these dire warning articles about bitcoin doesn't understand how block chain technology can revolutionize the world's financial system, doesn't understand the economics behind currencies, and sure the hell can't grasp the concept of a digital ledger system.
So why (aside from a classical exponential price) do you think it's a bubble?
Truth is I own some bitcoin, but it's more like a lottery card for me. A bit of fun to see where this technology might go and someday I can tell my grandnieces when "ole Uncle Clarey owned bitcoin." But if it's the industry wide consensus amongst journalists that Bitcoin is overvalued, I can hardly think of a better endorsement that it isn't.