Jump to content
bachmanity

XRP is up over 12,000% on the year. Is it a bubble?

Recommended Posts

XRP has been on a crazy awesome run to close the end of the year. We are up over 12,000% from the beginning of January. I keep hearing everyone from the major media outlets calling crypto a bubble but is it?

This seems to be everyone's favorite chart to show and then guess which phase we are in:

stages_bubble.png.c9ce5255e25caf7a24069ccd0147cb92.png

But why shouldn't we be looking more like a technology adoption chart. Ripple and XRP seem to be hitting a tipping point where the technology is really starting to gain traction and is going live in the real world.

s-curve-real-life.png.a566b0c70d76ee2cd544f1acbad94ce1.png

Maybe we are a mix of both. Here is one more interesting chart and post from http://woobull.com/the-state-of-crypto-markets-q4-2017/

His view is that we're reaching the end of the post industrial revolution and still at the beginning of the digital age. 

14-digital-revolution.thumb.jpg.d2fbc718e9fe32202d92bfc53d49824b.jpg

 

I think there is probably room for all of these charts and view points to be true at the same time. Were getting into a short term bubble but i think we're probably still in the media attention, not quite to the enthusiasm phase yet. I think we will see a rapid expansion into that as XRP becomes easier and easier to buy with many fiat pairs and wallstreet hedge funds trying to get in. But in the longterm were just at the beginning of the adoption of the technology and moving into the digital age.

Thoughts?

Share this post


Link to post
Share on other sites
6 minutes ago, bachmanity said:

Both

I look at XRP as a young lion that still has a way to go before even reaching it's prime.  BTC on the other hand is an old wore out lion that is about to be overthrown and won't last.  The entire market is just too young to burst.  BTC will be the 1st to go imo

Edited by 1todd960

Share this post


Link to post
Share on other sites
Guest

I believe BTC is in a bubble. Will it go up more? Sure. But where is the tipping point? Too risky for me. Back when BTC was $7, sure, if I knew about it, I would throw money at it and let it ride. Maybe all the way up to $200. Now? No. Hindsight is 20/20 and sure, I could be sitting here with $20,000 now. Or it could have faded away to nothing. 

Is crypto in a bubble? Some of the coins are overpriced. They have high numbers and no real uses. Buy carefully. 

Share this post


Link to post
Share on other sites
5 minutes ago, DrWhoAmI said:

Is crypto in a bubble? Some of the coins are overpriced. They have high numbers and no real uses. Buy carefully. 

Ya, that is what got me thinking of this. It seems right now that you could just blindly buy 5 coins and at least 4 of them will increase 500% in the next 3 months. Even with no partnerships, real world use. Just a good website, twitter and whitepaper. That just screams bubble to me

Share this post


Link to post
Share on other sites

The market is close to being in a bubble, me thinks. Maybe between 2-3T there will be a massive correction. Almost all coins are in a bubble i.e. they don't have any utility that will guarantee demand in case of a crash. XRP is in a bubble as well, but not as much - it's yet to prove what it's designed for, but in case of a market crash it will go down massively as well. There's no real demand at the moment apart from speculation and lambo kids. However, XRP has huge potential and I just hope the market crashes after XRP starts being used by FIs so that the recovery is faster and less painful. Most of the coins won't recover though. Ever. That's why real demand matters in case of a crash.. and this market will crash (correct massively) at some point, make no mistake. The fact that everyone will pretty much start selling at the same time won't help either. There's simply no way PoC projects and coins without absolutely any utility or purpose to have market cap in the billions of dollars. 

Share this post


Link to post
Share on other sites

Yes and no.  BTC at $20k? Probably a bubble, when it pops and if it grows more before then, who knows? 

Market as a whole? Probably also a bubble in some regards.  Coinmarketcap.com shows 1369 total "currencies".  Why?  Do even 2% of those have any real application?

I wouldn't say there is one bubble, more like many that will burst for any number of reasons.

 

What does seem apparent is that Bitcoin is at the center of attention and that it's probably in everyone's best interest if it continues to stay where it is, for the time being.

Edited by frankg

Share this post


Link to post
Share on other sites
Guest
14 minutes ago, iLeeT said:

The market is close to being in a bubble, me thinks. Maybe between 2-3T there will be a massive correction. Almost all coins are in a bubble i.e. they don't have any utility that will guarantee demand in case of a crash. XRP is in a bubble as well, but not as much - it's yet to prove what it's designed for, but in case of a market crash it will go down massively as well. There's no real demand at the moment apart from speculation and lambo kids. However, XRP has huge potential and I just hope the market crashes after XRP starts being used by FIs so that the recovery is faster and less painful. Most of the coins won't recover though. Ever. That's why real demand matters in case of a crash.. and this market will crash (correct massively) at some point, make no mistake. The fact that everyone will pretty much start selling at the same time won't help either. There's simply no way PoC projects and coins without absolutely any utility or purpose to have market cap in the billions of dollars. 

Very good post. I think Brad and everyone at Ripple is working hard to make sure they come out on top when it does happen. 

Share this post


Link to post
Share on other sites

Thanks to the OP for starting this thread and everyone contributing to the discussion. I know the "crypto bubble" discussion is something a lot of people seem to shy away from, but I think it's good to keep these discussions in the back of our mind as we invest in crypto.

I'm fairly new to the game, but I don't think any cryptocurrency (XRP included) is immune to the effects of market speculation and the inevitable correction that always comes after. I do think XRP is the most likely to survive and rebound from a huge market correction due to its underlying use and adoption by FIs. But it's healthy that we are discussing this I think.

Edited by woytow
typos

Share this post


Link to post
Share on other sites

LOL......we are before the Take-off!!!!

Think Amazon.com in 1994. 

Most human beings on the planet have no idea what a cyrptocurrency is.

I had someone come up to me at work the other day, all excited, asking me if I "ever heard of Bitcoin!!!"

Edited by Truthseeker

Share this post


Link to post
Share on other sites

I don't think it's a bubble.  It's a new asset class that naturally must grow massively.  Consider that its value is nowhere near the market cap of gold.  There will, of course, be large swings in valuation, especially when digital assets can be purchased on margin.  When a selling wave comes, which is always the case, and margin calls are triggered, which results in forced selling and lower prices, which begets more margin calls, then there will be big sell-offs.  Every single time that has happened, it's been a great buying opportunity.  But surely there are plenty of digital assets which have little to no value - those will likely go to zero eventually.  Xrp, on the other hand, has incredible utility and all the benefits of bitcoin.  From my perspective, which of course could be wrong, hold xrp and don't use margin.

Share this post


Link to post
Share on other sites
35 minutes ago, iLeeT said:

XRP is in a bubble as well, but not as much - it's yet to prove what it's designed for, but in case of a market crash it will go down massively as well. There's no real demand at the moment apart from speculation and lambo kids. 

I do not agree with this statement at all.  

Share this post


Link to post
Share on other sites

×