The behavioral economics of Bitcoin 2022, is it another bubble?
Ver Vídeo: The behavioral economics of Bitcoin 2022, is it another bubble?
As an economist, I think the Bitcoin price rollercoaster has been one of the most interesting monetary experiments of this century! While last time was clearly a bubble, this time I do not think it is.
Like to read? Check out the script of this video here: https://www.moneymacro.rocks/2020-12-18-bitcoin-bubble/
One the clearest signs of a bubble is the presence of what Nobel Prize Winner Robert Shiller calls irrational exuberance. Meaning most people are extremely enthusiastic about the price of an asset and that the general sentiment is that it will only go up. In 2017, there was clearly irrational exuberance when it comes to cryptocurrency prices.
If asset prices have risen really quickly, that doesn’t mean we are in a bubble. After all, there could be fundamental reasons for why these prices have risen so much. For example, it could be the case that the central bank has purchased many assets, driving the fundamental price up by making financial assets (including digital currencies) scarcer.
This along with a fundamental value increase in Bitcoin is likely what is driving the price today.
Narrated and produced by Dr. Joeri Schasfoort (University of Cape Town)
Tweets by JoeriSchasfoort
https://www.linkedin.com/in/joeri-schasfoort/
Attribution
– Peter Schiff’s YouTube channel for his image
– Image of Rober Shiller by Presidential Office Building via Wikimedia CC-BA
– Fragment of the movie the Big Short by Paramount (check it out, great movie on bubbles!)
Me chamo Felipe Trader e moro aqui em São Paulo. Comecei no forex a 6 anos atrás e hoje vivo somente do meu trading diário. Aqui no blog conto pra você as ferramentas e serviços que uso pra ser lucrativo.
Quick update… this video was made around the start of the year. Now, things are getting more and more bubbly in my opinion. What do you think?
Awesome video, I'm currently studying Industrial Economics and I hope to study behavioural economics later on, I read "Nudge" and found it fascinating!
Thanks. Please talk about Tether and how it plays out in macro view of crypto.
phd economists serves nothing but talking heads at CNBC, degrees does not impress me.
I'm investing in Bitcoin because it the first monetary battery in human history that doesn't bleed energy.
Wow. How the hell do these scammers find their way even into the comment section of videos like this :/. They have been so crazy these days
A bubble is a bubble and will always be
Not a trader by any means, but I think it is just another bubble.
People compare it to gold as a store of value, but I think that is flawed. You can actually do stuff with gold. Industry, science, jewelry. And currency. Gold is physical, not code. What does bitcoin do? Nothing else but currency.
How well does bitcoin serve as currency? Not very well. How many places accept it? Do they pay employees in bitcoin? No. How many people actually want to be paid in bitcoin?
The cost of something in bitcoin is always referenced back to the normal currency plus an additional amount to cover exchange fees and volatility. Things cost more in bitcoin.
Going back to the question of what does bitcoin actually do. It’s not a stock, it’s not a piece of a company. Bitcoin doesn’t produce anything. Even if there is inflation, the value of a company rises along with inflation because the assets and services are still there. How many are putting their useful money in bitcoin to spend bitcoin and how many are just buying bitcoin in the hopes that someone else will come along and pay more. How many plan to pay their taxes with bitcoin?
It just seems to me that the price of bitcoin is a combination of pump&dumps, FOMO, and a positive feedback loop. People say it’s going up. People buy it. It goes up. People buy because they think it’s worthwhile because it’s going up.
Bitcoin turning into an asset, how can it replace money?
You might get more subscribers if you turn on the option for closed caption when you make your videos.
Bitcoin is currently aiming higher for a more solidified price as expected by many before the year runs out, with bulls now aiming at sending the cryptocurrency up towards $18,000 following the recent break below this level. That's why people who are new in the market always panic daily over the charts, it's a never-ending road if we are being honest. Well as for me, it's always been no pressure ever since I ventured into the crypto community, purchased over 5 Btc in 2017 which I saved until 2022 before switching to Tradlng the currency. I will always advlse anyone who just started dealing with bitcoin or old holders, Trad e people! It's truly easy, only requires your time. I registered with a mentoring firm on Te.leqram mssngr who helped me grow my crypto portfoIio all the way to 17 Btc in a year. @Mattboltonfx on Te.leqram made my year.