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
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This might sound shocking or controversial: I don't think bitcoin is in a bubble.
The type of price hikes bitcoin is experiencing is normal for a growth phase. Bubbles typically occur when there is no room for growth and the value of an asset continues to increase, inexplicably.
According to polls, roughly 2% of americans have used a crypto currency. With roughly 300+ million americans that implies approximately 6 million americans have used crypto in some form. 2% of a population is a small demographic. Bitcoin still has plenty of growth potential (and continues to grow). These may comprise some of the best arguments for bitcoin not being a bubble.
The main thing holding the value of bitcoin (and crypto) back are transfer fees. If those is solved we're going above $20k imo.