Stop calling the recent expansion of the cryptosphere a bubble. We are not in a bubble. We are simply experiencing the rapid expansion of a nascent technology with new entrants and their fiat entering the market. A bubble is when everyone is talking about cryptos, e.g. your taxi driver, the bellboy, etc. Outside of my close circle of tech colleagues zero people are talking about Bitcoin.
Dr. Robert Shiller's checklist on how to predict if something is a bubble or not.
The solution: a checklist like psychologists use to determine if someone is suffering from, say, depression. So here is Mr. Shillers checklist.
* Sharp increases in the price of an asset like real estate or dot-com shares
* Great public excitement about said increases
* An accompanying media frenzy
* Stories of people earning a lot of money, causing envy among people who arent
* Growing interest in the asset class among the general public
* New era theories to justify unprecedented price increases
* A decline in lending standards
Now most of these points can be applied to bitcoins, almost 200% growth in the last few months. Dot-com was a bubble and it popped, and bitcoins are similar to it in terms of technological advancement, almost all technological breakthroughs in the past have caused a substantial impact on the market, no matter how small it was, but the whole concept of bitcoin is different. So is it a bubble? Yes and no. Obviously anyone would get a bit skeptical when a currency has such a tremendous growth in a very short period of time. But mass adoption can be logically applied as a reason behind it.
Being a currency, as far as the user base increases + the areas where bitcoins can be applied increases, it would be in demand, and would not just go out with a burst.