Why could Bitcoin be a massive bubble? – Peter Brandt asked, Twitter responded
Peter Brandt has recently said there is a 50-50 chance of Bitcoin going towards either $1 million or zero.
Peter Brandt, the renowned commodities trader who has taken interest in digital assets, took to Twitter to learn arguments that may counter the current bullish momentum in the Bitcoin market.
Bitcoin (BTC), which has moved 50% higher since its July lows as it currently sits around the $44,000 mark, has been under fire for its carbon footprint and China’s crackdown on crypto, but these two issues were barely mentioned in the replies to Mr. Brandt.
“The art of contrary thinking. The bullish narrative for Bitcoin is well known. Curious though, if you had to provide JUST ONE bullet point reason why $BTC could be a massive bubble of historical proportions, what would the reason be?”, he asked.
“BTC specifically is an obsolete blockchain technology compared to newer generations of cryptocurrency. BTCs tokenomics (ever-decreasing supply) combined with the current narrative (increasing demand) is a recipe for a bubble- despite its flaws / old tech (proof of work)”, said @EagleEyeTrader_.
“Nobody wants a store of value. Money has always gravitated towards alpha. As BTC matures, it will become a greater fool game and eventually, when growth is below other spec assets it will take a permanent hit. It will still “work” but valuation will be much lower than advertised”, @Sockpuppet_Doug commented.
“There is no barrier to entry to starting a cryptocurrency and given how new the tech is, it would be impossible to select the tech winner today (in the same way it would be impossible to select google and Facebook in 1999- they just don’t exist yet)”, @TarekAntaki added.
“We still don’t really know who Satoshi Nakamoto is so there is potentially some serious asymmetry of information”, said @johnkonrad.
“There is only one meaningful risk to #Bitcoin at this stage: a coordinated State attack. If Bitcoin were to fail it would be because it was not so invulnerable to such an attack as we believe. I think it’s important to have humility and recognize this is still an open question”, @real_vijay noted.
The thread has been extensively commented and many other reasons have been mentioned, including the cult-like status of Bitcoin, which is likened to scams.
We’re still in a time where the question “Is Bitcoin a bubble bursting or a currency maturing?” is valid, but the market ultimately determines the price. Peter Brandt has recently said there is a 50-50 chance of Bitcoin going towards either $1 million or zero.