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Cryptocurrency pioneer is happy to admit that Bitcoin is in a bubble, but calls it a healthy signal.
There’s one question everybody wants an answer to: “Is Bitcoin in a bubble.” Co-founder of Ethereum, Joseph Lubin, says yes. But that’s not a bad thing.
The idea that this revolutionary technology may simply be building to burst has a lot of investors behaving cautiously, but Lubin sees it differently. He believes that if this is indeed a bubble then it is a healthy thing.
Lubin remarked of Bitcoin:
“Totally a bubble. This is the good kind of bubble that occurs when a profound technology emerges and can’t build out its infrastructure fast enough for all the people that see the value and the vision.”
Lubin suggests that there have been bubbles all along the way. Bitcoin rockets, then corrects, and these movements are good for the digital currency.
Doomsayers maintain that a large bubble is on the way that could sink Bitcoin and send it to zero, but Lubin is of the opinion that the current price corrections can only strengthen the industry going forward:
“We will see bubble, after bubble, after bubble, each larger than the last and each creating more fundamental value, because this technology is so powerful and profound that it is going to change the way IT systems around the world are being built.”
Of course, this thinking by Lubin is very outside the box, and it is not the usual viewpoint when it comes to bubbles in a technology and investment space. Billionaire investor Ray Dalio sees the speculative nature of Bitcoin as its main red flag, considering that a damaging bubble that could be building:
“It’s very much speculative people thinking, ‘Can I sell it at a higher price?’ And so, it’s a bubble.”
Another Bitcoin skeptic is Saudi Prince Alwaleed bin Talal, who was recently arrested. Bin Talal says Bitcoin will go the way of Enron.
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