But there weren’t as many bubbles at that party as there have been bitcoin bubble-critics, some of whom are world-renowned intellectuals.
I can’t help but look at these critics in the same way I looked at the kids at my son’s party.
It is entirely true that bitcoin did, at various stages in its 13-year history, enter “bubble-territory” where the price was due for a major correction.
Based on that it should be pretty clear that, whatever it is, bitcoin is something other than what is usually described as a bubble.
It would be something that exists in an entirely new category unlike any other bubble we’ve ever seen before.
Having recently set a new all-time-high at over $68,500, the bitcoin price surpassed it’s previous all-time high of $64,000 from April 2021.
Not only that, but soon after bitcoin entered what traditional experts labelled “bubble territory” during these new successive all-time high peaks, a catastrophic “crash” of 50% – 80% always followed — only for the price to consolidate again, then build to new all-time highs at levels multiple times higher than previous records, all within relatively short periods of time.
Bitcoin resembles a phoenix rising from the ashes of its own obituaries, far more than it resembles a bubble.
This makes the notion that bitcoin is a bubble less likely each and every time bitcoin does its thing.
This is why log-charts are useful.
It seems clear that there’s a steady upward trend and that the price could be heading towards a plateau of sorts.
But I suspect that, even based purely on its price charts and ignoring all of its other paradigm-shifting fundamentals, bitcoin looks unlike any other bubble in history, no matter what chart you look at.
With each successive halving stable demand begins driving up the price.
However, by the time it corrects, enough new people have learned about the fundamentals of the network and its underlying mechanics, which is 100% transparent for those who care to look.
Thus a price floor is formed that is higher than the previous one, based around the fact that each successive wave leaves behind more educated users than those who panicked and were swept out to sea.