Why could Bitcoin be a massive bubble? – Peter Brandt asked, Twitter responded

Rick Steves

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.

Peter Brandt on Bitcoin: 50-50 chance of $1MM or ZERO

“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.


Read this next

Digital Assets

Luxembourg’s regulator warns on false regulation of Crypto Capital Profits

The regulator of Luxembourg’s financial markets, the Commission de Surveillance du Secteur Financier (CSSF), has warned that a firm claiming to be authorized under the name Crypto Capital Profits is in fact not licensed to carry out business from within its jurisdiction.

Institutional FX

FINRA fines Wedbush $900K over reporting violations

The Financial Industry Regulatory Authority continues to take disciplinary actions against financial services firms for providing inaccurate securities trading information.

Digital Assets

Bitkub investigated by Thai regulator in ‘wash trading’ case

Thailand’s Securities and Exchange Commission has targeted Bitkub over allegations of inaccurate reporting and wash trading on its cryptocurrency platform.

Crypto Insider

Crypto.com secures approval to launch its services in France

Crypto.com has registered its cryptocurrency services with the dual regulatory structure in France, which includes the Autorité des Marchés Financiers (AMF) and the Autorité de Contrôle Prudentiel et de Résolution (ACPR).

Inside View

How to offer iOS compliant trading apps? Editorial by Chris Rowe

Webtraders are becoming increasingly important for FX and CFD brokers as more and more of their clients are trading using their mobiles. 

Institutional FX

SpiderRock deploys Eventus trade surveillance for futures and options offering

“As we have begun to provide direct market access as a routing broker and grown in our futures offering, which is subject to a different regulator, we wanted to make sure we chose a trade surveillance platform that has all the tools that we need, a format we can review easily, and capabilities to demonstrate to regulators that we have the proper trade surveillance procedures in place. Validus checks all the boxes for us.”

Industry News

Space and Time raises $20 million to grow its decentralized data warehouse

“We look forward to seeing the ways in which Space and Time will allow the business logic in centralized systems to be automated and connected directly to smart contracts.”

Digital Assets

Mastercard, hi app partner to issue cards with NFT avatars

In partnership with Mastercard, crypto and fiat financial app hi is launching what it calls “the world’s first debit card featuring NFT avatar customization.”

Digital Assets

Wirex to support government of Uzbekistan to adopt blockchain

“We’re excited to work alongside the Uzbekistan Direct Investment Fund in order to help the sector thrive, enrich the financial ecosystem there and set a benchmark for other countries, and ultimately expand.”