Bitcoin - Separate facts from Fiction

ekayasi (25)in #cryptocurrency • 7 years ago (edited)

In the past one week, Bitcoin suffered a big drop in value by touching the 6,000 per dollar mark on February 6th 2018.This was the largest drop since December last year.Many thought that this was the time for the bitcoin "bubble" to burst.

The truth is that, Bitcoin bahaves the same way other markets behave eg the stock markets ie The prices increases and drops are a normal phenomenon obeying the Market RollerCoaster.

Market movements - Cycle.jpg

Is Bitcoin a bubble?

One of the greatest characteristic of a bubble is the sharp increase in the value of the asset without proper justification.It is true that Bitcoin value has in the recent past been on an upward trend which makes it possible for one to easily classify bitcoin as a bubble.
But the main question is, What is the true value of Bitcoin?. The answer is , No one knows .

It is true that there could be some unresolved issues regarding bitcoin which the anonymous founders (Satoshi Nakamoto) could have resolved but this has not hindered it from becoming a popular term in the world.

My observation is, Fighting Bitcoins and cryptocurrencies only serves to make them more popular. We are closely approaching a time when the global finance leaders will sit together and perhaps find a way to come up with some regulations as opposed to continued denial of the existence of digital currencies.

It is quite obvious that the biggest casualty should digital currencies become globally acceptable would be the banks.Keep this post and read it Five years from now.