Bitcoin Criticism: Bitcoin is a bubble

We decided to break down the main arguments behind Bitcoin’s criticism (we’ll be doing this all week), and we’ll start with one of the most popular statements:

Bitcoin is a bubble.

Let’s break down what can be called a “bubble.” A bubble can only be inflated once, such as the inflated bubble of “tulip mania” in 1636.

A burst balloon cannot be re-inflated, and if the bullish rise of 2017 was a bubble, how did Bitcoin recover and surpass that high in 2021?

It’s true that cryptocurrencies are volatile, but this market should be evaluated over wide stretches of time. 2014 and 2018 were the only years when Bitcoin’s price was lower at the end of the year than it was at the beginning.

If you zoom out and look at long-term average indicators, Bitcoin’s appreciation is consistent. The monthly price has never closed below its 200-day weekly moving average.