REI’s stop worrying, Bitcoin is the next bubble.

[Tyler Mullen]

Everyone’s been wondering since the 08 bottom, eager to buy at another bottom, what the next bubble would be. Will it be RE, some hoped...

2000:

Tech stocks of companies that were not real businesses and never had hope of making profits.

2008:

Properties purchased with liar loans and “all the rest of it”.

Bubbles form when money chases less and less intrinsic value. Bitcoin fits the bill far better than the current REI market.

Cryptocurrencies are not tangible, it has no alternative use, it costs virtually nothing to produce as evidenced by there being over 1300 of them, not counting gaming economies like Eve ISK, airline miles and reward points that are also “crypto-currency”. Bitcoin will never generate a return and pay dividends, you can’t rent it out to tenants for profit, you can’t improve it to increase its value to borrow against.

I'm thankful for it, it will keep a bubble from happening in REI, for now anyway.