image credit dailyforex.com
An excellent Bitcoin article by Adam Lemon in dailyforex.com
My short summary.
First the Hmm! could be ok, view
My assumption from the article is that provided Bitcoin survives in its present uncontrolled and fixed state, it will inevitably appreciate against all present fiat ( from the Latin fiat ("let it become", "it will become" - paper and metal have become.) currencies, with the only discounting arising from the question of whether it will become fully accepted as a convenient, usable legal tender.
A factor within this is whether other crypto-currencies could eventually usurp Bitcoin’s leading role: it is worth noting that the capitalization of other crypto-currencies has begun to exceed Bitcoin’s capitalization.
If you believe that Bitcoin will maintain its dominance over other individual crypto-currencies and eventually become widely accepted, then there is every reason to believe that a Bitcoin is worth at least $1,600 right now.
If this is true, then Bitcoin might be overbought and due a substantial correction, but it could not be said to be in a bubble comparable to Tulip Mania or the first British joint stock companies of the 17th century. This case also supports Bitcoin as an attractive medium to long-term investment.
On the Other Hand
Unfortunately, (Adam Lemon) sees a dangerous overreach in assuming that Bitcoin is going to be a freely convertible,fungible(exchangeable or replaceable)currency, i.e. that it will be available to everyone who wants it and will be generally acepted as payment.
This is far from assured, and with governments finding considerable value in maintaining present fiat currency systems which may be inflated to write off debt, why would they sit back and allow bitcoin to usurp national currencies as a medium of exchange?
If Bitcoin is going to remain the preserve of bohemian tech enthusiasts, much as it is today with less than 6 million individual users, then it is in a bubble and is enormously overvalued.
link to article in full -http://www.dailyforex.com/forex-articles/2017/06/is-bitcoin-in-a-bubble/80966
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