Are Bitcoin and Ethereum bubbles? Venture Capitalist: This argument is not true

Entrepreneur Mark Cuban recently said that Bitcoin is facing a bubble. However, Daniel M. Harrison, CEO of DMH&CO and partner of Monkey Capital, revealed that this situation (bubble) is impossible due to the increasing market influence of Bitcoin and Ethereum.

Market polarity

The main factor that prevented the digital bubble from existing is market polarity. Many people do not understand what market polarity is, but there are several important and easy-to-understand points. Obviously, market polarity is directly influenced by the "reflexivity theory" proposed by George Soros.

According to Soros, market conditions are not affected by equilibrium. Instead, they are a "reflection" of two functions in sync: cognitive and manipulative. The cognitive function is a neutral basis of thought - the basis on which economic actors evaluate facts.

On the other hand, the manipulative function transforms one or more facts in order to gain benefits. Once the cognitive thought is influenced by the manipulative thought, neutrality will be "portrayed" as a different point of view and eventually become a manipulated fact.

Therefore, the market reflects the views and perspectives of its participants, not the overall economic picture.

This can manifest itself in two ways:

Manipulating cognition = reflexive manipulation + cognition = balance

The equations mentioned above prove that a manipulative mindset is common bottom line, but does not represent cognitive function. The reflexivity of all markets clearly indicates that Bitcoin and Ethereum are far from a digital bubble.

Artificial vs. Natural

More importantly, the Ethereum and Bitcoin markets are influenced by two kinds of thinking: artificial and natural. Artificial is related to blockchain artificial intelligence (AI), while natural refers to human intervention. Many experts believe that blockchain is adopting an "economic mindset."

If manipulative and cognitive players in the market suddenly merge together, you end up with reflexivity or a virtuous feedback loop. In this way, the digital market is subject to reflexivity or a reflexive state. It is a self-sustaining state that can last for many years.

It is worth noting that artificial thought is the fuel of self-sustaining reflexivity. With AI (blockchain), digital markets can continue to thrive, ultimately leading to volatility in the value of Bitcoin and Ethereum. Market polarity is constant.

With market polarity, no digital bubble will exist. The entire blockchain system will never return to the starting point, but will continue to develop. Pricing will be affected by economic factors while maintaining a specific foundation.

Innovation or its application in multiple fields is also another important factor in shaping the resilience of blockchain technology and its ability to survive the "bubble".