It’s Official: As Bitcoin Goes Higher, Bubble Fears Drop
A succession of polls has revealed contradictions in investors’ understanding of Bitcoin’s price being a bubble.
$2k Bitcoin More Bubblishous Than $8k Bitcoin
Results of three installments of a Twitter survey by funds manager Charlie Bilello show that the higher Bitcoin’s price goes, the fewer respondents think a bubble is occurring.
“[The] higher the price of Bitcoin, less people believe it’s a bubble, more people believe it’s undervalued,” Bilello commented.
The three polls launched May 22, November 3 and November 20, when Bitcoin was trading around $2200, $7300 and $8200 respectively.
The proportion of respondents who thought Bitcoin was in a bubble dropped from 51% in May to 39% last week. At the same time, those who thought it in undervalued over doubled from 15% to 34% in the same period.
My theory: higher the price of Bitcoin, more attention it gets, higher the adoption. If you own something or know someone who owns something, you’re less inclined to call it a bubble. Conceivably, if Bitcoin continues to rise, less and less people may consider it a bubble… pic.twitter.com/ljs3DFK8EX
— Charlie Bilello (@charliebilello) November 22, 2017
“My theory: higher the price of Bitcoin, more attention it gets, higher the adoption. If you own something or know someone who owns something, you’re less inclined to call it a bubble,” Bilello continued.
He added that he himself thought a bubble was present in 2013, prior to Bitcoin falling dramatically after the Mt. Gox debacle.
“Then went up another 8x. Was it a bubble then? Is it a bubble now? Who knows,” he mused.
CNBC Poll: 71% Would Put $10k In Bitcoin Over Stocks
The figures appeared the same week as CNBC, the mainstream news network which has taken a significant interest in Bitcoin’s progress this year, published its own poll asking viewers whether they would invest $10,000 in Bitcoin or the stock market.
POLL: If you had to put $10,000 to work right now, would you rather put it in #bitcoin or the stock market?
— CNBC's Fast Money (@CNBCFastMoney) November 21, 2017
71% opted for Bitcoin, yet the overwhelming majority is perhaps less surprising than it looks.
CNBC’s Fast Money segment has regularly featured investor and presenter Brian Kelly advising viewers to buy Bitcoin at certain price points, along with rebuttals of criticism that the virtual currency is a dangerous investment choice.
What do you think about the results of the polls? Let us know in the comments below!
Images courtesy of Twitter, Shutterstock