Timothy Lee, over at ArsTechnica, has a great article today, titled, “It’s time to admit Bitcoin is more than just a bubble.”
But here’s the thing: people have been predicting Bitcoin’s impending demise for years, and they’ve consistently been wrong. Even if Bitcoin were to lose 90 percent of its value in the coming weeks, it would still be worth around $800—a value many people dismissed as an absurd bubble four years ago. If it lost 99 percent of its value, it would be worth $80—a value that would have been considered absurdly high less than five years ago.
Blockchains are an important new technology, and cryptocurrencies are a fundamentally new asset class. Bitcoin, the most popular cryptocurrency, might be overvalued right now, but it might not be. Either way, it certainly isn’t going to suffer an Enron-style collapse.
Couldn’t have said it better myself.. — read the rest of the article over at ArsTechnica