Posted by on October 30, 2017 7:15 am
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Categories: Alternative currencies apple Auto Sales Bitcoin Blockchains Business Cryptocurrencies Cryptography Decentralization Economics of bitcoin Economy Finance goldman sachs money new york city Real estate Satoshi Nakamoto

While there is no official measurement of a market bubble, Gadlfy’s Stephen Gandel notes that one could be the speed and force of the rise.

Dot-com stocks rose 680% from the beginning of 1996 to the end of March 2000. Bitcoin has risen over 800% in the past year alone, to $6,300 at its peak today…

In that run, it has added roughly $90 billion in value, crossing above $100 billion for the first time on Friday.. and bigger than Goldman Sachs…

But it has taken Bitcoin far lass time than others to join the $100 billion club…

 

Still, as Gadlfy’s Stephen Gandel writes, compared with other asset classes, like real estate or stocks, bitcoin is a pimple, which is why some people have convinced themselves that bitcoin can’t be in a bubble.

New York City real estate alone is worth more than $1 trillion. There is $8 trillion worth of gold in the world, nearly $15 trillion in Treasury bonds and more than $25 trillion in the U.S. stock market. Bitcoin’s mere $100 billion, by comparison, is small.

But that’s only part of the equation. New York City real estate is worth 10 times bitcoin, but it didn’t pass the $100 billion mark, adjusted for inflation, until the late 1970s, or roughly 310 years after the territory was renamed after the Duke of York. U.S. auto sales didn’t reach $100 billion for 60 years. Apple did it in a sprightly 31 years, but that was still four times slower than bitcoin, which clocked in at about seven years. But Apple, unlike bitcoin, produces significant earnings and holds $260 billion in actual cash.

And the bitcoin universe has now drawn in investors in so-called initial coin offerings, chip manufacturers and technology investors in general. If the bitcoin bubble does pop, the value of a lot more than just the cryptocurrency could vanish.

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