According to this article:
https://www.investopedia.com/articles/stocks/10/5-steps-of-a-bubble.asp, there are 5 steps going to a bubble:
1. Displacement 2. Boom 3. Euphoria 4. Proffit taking 5. Panic
I think we are in step no. 2 Boom, as the global MCAP is not even in the trillions. Also, the mainstream adoption is still in its infancy (1% or so), but the idea is that we need to stay alert about the first signs of a bubble burst.
In which step do you think that we are in now?
What do you think that those first signs will it be?
What contingency plan would you implement?
Thanks
The mystery about all these steps is that, no one knows the time. A lot of those steps that have been itemised over the years actually came into play after the event has happened and that does not solve any problem or avoid any. Concerning bitcoin, its hard to state this is the time we are exaclty because depending on how one looked at it. In the past couple of years when the price of bitcoin jumped from some cents to some amount of dollars, a lot of people would have said its a time of boom and we are moving to the next stage but the issue is it seems we have not left the boom stage because from the few dollars, we went to few hundreds of dollars to few thousands and now in the fifteen thousand region.
For me, I would still say we in the growing region because the penetration has not gotten to the point where people would know about it that the fall will affect almost every family ( the crash of 2008 comes to mind), and because the potential is still there. When we are able to live that region, we can then talk about boom and every other stages that follows.