Is crypto a bubble?
Wait! Tell me what's not a bubble!
Before jumping to any conclusion, Just think twice!
Do you really think that such a revolution will just vanish into thin air?
Nonetheless, we had seen the exact opposite case on May 22, 2010. Did you know that one customer (Laszlo Hanyecz) had paid 10,000 bitcoins for two Papa John's pizzas? Today, he could have opened a chain of pizza restaurants all over the globe with those bitcoins!
So, will you consider cryptos one of the biggest opportunities towards financial freedom?
On the other hand, many investors lost more than 90% of their portfolios in the 2018 crypto crash. Well, that was not the first correction; cryptocurrencies are being corrected from time to time. With such fluctuations, is this market bubble ready to burst?
The debate could go both ways!
Bitcoin and altcoins have been hammered many times by skeptics and old-school press whirling around them. However, we firmly believe that it will revolutionize the world economy and money in many ways than one could imagine.
Any fool can criticize and complain; that's not critical thinking. It takes intent and determination to understand something of this magnitude that doesn't seem so straight at first.
Most people trolled the great Alexander Graham Bell for his telephones. People didn't even spare the Wright brothers as they wanted to invent the flying machine.
But the question here is not about criticism. What we are trying to unfold here is the bubble.
If you say Bitcoin is a bubble, tell me what's not a bubble?
Gold and silver have value because we believe it has value. Other than they are lustrous metals, what's its actual use case anyway?
Even the dollar we trade could be a bubble; who knows, suddenly, from one day, it starts losing its value.
Have you heard about Lehman Brothers Holdings Inc.? It WAS the fourth-largest investment bank in the United States until it filed bankruptcy in the 2008 Great Recession after remaining operational for 158 years!
Do you remember how the internet thrives, especially after the dot-com bubble bursts?
One thing that we learned from these bubbles is that the crash mostly takes out those who are not legitimate. As we know, Amazon survived the dot-com bubble, and now the company enjoys big time in e-commerce.
The equation is simple: When people start losing trust, the equity starts losing its value.
No system in the world is immune to crashes. Even a 150-year old bank could fall, wall-street markets could crash. Do you still remember the movie The Big Short? I recommend you all to watch it once.
Institutions and governments that were once skeptical are now racing to seize the power of Blockchain technology. Whether Bitcoin succeeds or is sent back to dust, the sure thing is that the blockchain will shine and disrupt many traditional ecosystems.
As far as I am concerned, I believe that blockchains and cryptocurrencies are here to stay, thrive, and will continue evolving whether non-believers like it or not.
However, critics are also right to some extent, for now at least.
Infrastructure vulnerabilities, illegal activities, and extreme volatility can be some troubling concerns. But blockchain technology is still in its caveman stage, and there's so much room for improvement, considering what it could do with such dynamism.
On the contrary, the technology is also being praised for its inflation resistance, speed, transparency, portability, divisibility, and technology.
Depending on your planning and execution, you could lose or win a lot of money in any market. But when things go south, the results are the same for both centralized and decentralized systems.
Empowering Common People
The only problem with centralized systems is that some individuals or central authorities control them. You cannot escape from their rules, methods, and monitoring. Decentralizing those systems will earn the trust of users. Decentralization puts the power back in the hands of the public.
Even giants like JP Morgan were skeptical about adopting this technology initially as the idea seemed absurd. However, they stated that they would integrate Zcash into their blockchain network as a part of an anonymity protocol.
Did you know?
El Salvador is going to build world's first Bitcoin City from bitcoin-backed bond.
Read the full story here.
The Bottom Line
Whether you have your disbelief or are a true believer, the fact remains the same: blockchains and cryptos can and will do much more than anyone can envision.
It's not just a currency or a code structure; it's a whole new decentralized concept that can scale and upgrade most traditional systems- be it banking, education, monetary system, mobile computing, social media, retail, trading, technology, privacy, entertainment, or just a meme!
Thousands of ICOs are raising billions of dollars for a variety of decentralized projects. The heavy fund-raising itself shows that crypto is a no joke; it's a serious business.
Visionary entrepreneurs and billionaire industrialists (like Elon Musk) have already planned to accept cryptocurrencies to ride this futuristic wave. Moreover, many prominent companies have started accepting cryptocurrencies for their business, such as Microsoft, Visa, Starbucks, and many more.
Don't miss the forest for the trees! You don't want to look back on this day after ten years and ask yourself: "Why didn't I see this coming?" Because the world would be widely transformed by then.
While most people are still skeptical, be the one who can gaze into the future, put your intellectual curiosity at work, and realize the potential of this technology— and you can be a part of this revolution too.