Whether or not Bitcoin is in a bubble is always questioned. The co-founder of Ethereum, Joseph Lubin, says that Bitcoin is most certainly in a bubble, but that isn’t necessarily a bad thing. Investors are currently behaving quite cautiously as it appears that the revolutionary technology behind Bitcoin is building to burst, however, Lubin believes that the bubble is actually a good thing.
Joseph Lubin believes that Bitcoin has experienced bubbles along its entire journey so far, however, they are the good kind of bubble. Lubin defines a “good bubble” as occurring when a new technology emerges, yet can’t build its infrastructure fast enough for the growing number of people who see and appreciate the value and vision of the technology.
The opposite end of the spectrum to Lubin’s positivity is the doomsayers that plague every new technology or development. The opinion among these circles currently is that a large bubble is on its way for Bitcoin that could cause it to sink.
Lubin’s out of the box thinking, however, is that these bubbles in Bitcoin’s journey cause the cryptocurrency to rocket, before correcting itself again. As much as this movement might cause a concern to some, Lubin believes that this can only be good for the currency. Lubin is of the opinion that the current price corrections will strengthen the industry for the future, as bubble after bubble will help the technology to grow and develop to change how IT systems globally are built.
Lubin’s thinking is a very unusual viewpoint in comparison to the common thoughts on bubbles in technology. Ray Dalio, a billionaire investor, sees that the possibility of a large, damaging bubble combined with the speculative nature of Bitcoin is it’s biggest red flag and could cause problems for the platform in the future.