Bitcoin vs the Bubble Myth: Why BTC Keeps Bouncing Back Stronger

Breaking the Crypto Myth: Bitcoin Isn’t a Bubble

Remember when people said that the internet was a fad? Or when they thought Amazon was just an online bookstore? Fast forward and both are woven into the same fabric of everyday life. 

Now, Bitcoin(BTC) is facing a similar question : Is it just a bubble waiting to burst? 

When headlines swing between massive gains and sudden crashes it is a very fair concern which comes in the mind of users. 

Just like when you see anything from a large distance it looks different and on the other side getting closer to it gives a clearer image and understanding of that thing. 

Likewise , understanding whether bitcoin is a bubble or not by just reading headlines doesn't provide you a deeper understanding of it. You have to come closer to understand it deeply!

If it’s a bubble, why Does it keep getting Bigger 

To understand why bitcoin might not be a bubble at all you need  to zoom out and rethink how we even measure value . 

In traditional economics especially the Austrian school which offers a lens that helps you to decode this digital asset not just as a speculative token but as a potential currency which is built on liquidity, network strength and evolving trust. 

What makes something money?

The answer to this question would be money is not about the price of something, it's about how easily and widely it can be exchanged. 

In the early days of spending Bitcoin was nearly impossible without shaking the market. But after a few years, the same amount of Bitcoin could be traded smoothly and globally. This shift in liquidity makes the story of Bitcoin interesting . 

In a world where value is tied to momentum, utility and belief , BTC’s growth tells you something more important than just its price tags. 

President Prospera Draws The Line: Bitcoin vs. The Bubble Myth.  

President of Prospera, Joel Bomgar says in a video that Ladies and Gentlemen, let’s talk about bubbles- not the kind you blow at birthday parties, but the kind that pop economies. 

He said History gave us countless examples like the Dutch Tulip Mania, the dot-com boom, the 2008 housing crash. All these bubbles give three important traits- 

• A massive one-time surge in price 

• A short, intense lifespan

• A crash that takes the asset back to zero or to its original value 

A Price Journey Like No Other  

In the early days of BTC , in its first major price cycle, it jumped from just $0.05 to $32 then fell back to $2, which  seems like a classic bubble, right? But hold on, even after crashing , it was still 40x higher than where it started. 

Source : X

Then came the next wave i.e $2 to $1,200, then it backed to $92. That was a massive dip, but still it is not standing even near zero, even stopped there. 

After that the third wave came where $92 became $19,000. Then fell to $3,200. It was again a dip but look, it is 35x increased from the previous low. The bar shown below clears it all!

Real Bubbles Don't Come Back This Strong

Clearing the myths he says Bubbles don’t bounce like crypto. They burst and die. Just like Tulips in 1637 or tech stocks in 2000. But Bitcoin? It’s on a pattern that reflects trillion-dollar giants like Apple,Amazon and even Gold  when viewed on a logarithmic scale. 

It is because the market is still trying to figure out just how big of a deal Bitcoin really is. 

Characteristics of Bubble 

Joel says bubble shows three characteristics that are-

• They tend to be a single cycle boom then bust 

• They are relatively short in duration and 

• Crash back down to the baseline 

which is either zero or the inflation modified place of where they were before the boom. 

He explained these characteristics by relating the phenomenon to Dutch tulip mania. 

How is it different? 

Comparing the bubble trait to Bitcoin's reality would provide you a clear prospect in understanding how BTC and bubbles are opposite of each other. 

• Bubbles are one-time booms and BTC has multiple cycles which are each higher than before.

• Bubbles are short-lived hype whereas BTC is for over 15 years and still counting. 

• It returns to baseline or zero whereas BTC has never gone back to its origin and is still rising. 

Conclusion: 

While bubbles rise and burst, BTC shows a different pattern from Bubble. It shows a pattern of resilience and growth across multiple cycles. 

Unlike short-lived hype-driven assets, BTC is continuously evolving, backed by increasing liquidity, adoption and utility. 

Its journey reflects that of transformational technologies like the internet or amazon , they were initially misunderstood but have slowly shown magic to the world. 

Rather than a bubble waiting to burst, Bitcoin appears to be a blueprint for the value and finance for the future. 

The investment in Bitcoin by the big personalities and investors like Michael Saylor- It is the biggest publicly listed Bitcoin holding  listed company . it has increased its holdings  by an extra 245BTC for $26M. 

The company’s average purchase price of its BTC position now stands at $70,681.

Others are Tesla, Micro strategy, MARA holdings etc are using it as an asset and the treasury clears it all!