Blog Opinion Bitcoin: Bubble or digital gold at a bargain price?

Bitcoin: Bubble or digital gold at a bargain price?

-

- Advertisment -

Satoshi is probably smiling today. It was January 3, 2009, when Satoshi Nakamoto created the block containing the first 50 bitcoins. The code of the first block contained a message: The front page of the Times of London, which said a second bailout package for the banks would be needed. It was the period when the bursting of the mortgage bubble had led to an unprecedented financial crisis.

Yesterday, 7 May 2020, another British newspaper, the Financial Times, headlined the Central Bank of England’s assessment that Britain, due to the pandemic, is heading for its worst recession since 1709! At the same time, bitcoin exceeded $10,000.

The first page of the financial times newspaper.

Bitcoin, once again, has emerged as a leader in international markets. It has surpassed the performance of gold, the only asset with a positive return in the midst of a pandemic. All equity indices, of all countries, are in negative territory. So are real estate. Even health care companies are among the losers.

Anyone who considers bitcoin’s success a juncture, he underestimates that stock markets are the most competitive space that has existed and will probably exist. They compete globally, strong minds, highly educated people, successful with deep pockets, institutional with enormous power. If there was a problem with bitcoin, they would have found it for years.

Bitcoin’s route may so far offer steep ups and downs, but the main direction is one. And it’s ascendant. It is a common feature of early-stage technologies, the enthusiasm to alternate with the denial of excessive expectations. What is certain is that if there was no interest, the bitcoin experiment would already be in the bin.

The arguments

Some people call it a bubble. How can something be considered a bubble when it went up in 2011, 2013, 2017? Bubbles don’t do what bitcoin does. They don’t fall and go up again. The bubbles go away because people lose hope, they get frustrated. Because the weaknesses came to light. Investors at the end of the route realized they had excessive expectations that were disproved.

It’s barely the opposite in bitcoin. As time goes on, more and more people are discovering astounding that the truth is different from what they thought. That they haven’t been explained properly. Bitcoin is an antidote to the irresponsibility of banking policies and unpredictable economic conditions.

Bitcoin is an antidote to the irresponsibility of banking policies and unpredictable economic conditions. #banks #retweet #bitcoin #btc #crypto

Most people take it negatively because they don’t bother to understand it. They perceive it as useless to anyone who doesn’t understand how it works. Just like they didn’t understand the Internet before. They couldn’t suspect the impact it would have on their lives, on their daily lives. Ignorance ends when research and study begins. When you pull the curtain that prevents you from seeing in true knowledge, you will never again become one of many.

Theories and opinions can be overturned. The experiments, never. Without experimental evidence, without continuous research and verification, economics is more reminiscent of theology after equations than physical chemistry. And we don’t want that. At least not when it comes to putting our money in. Anyone can have what they want. Interpret them in his own subjective way. However, the odds cannot be disputed.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest news

Crypterium Signs New Partnership with Apple Pay, Unveils its Virtual Card

In late 2017 when Bitcoin and other digital assets became quite popular, the consensus amongst enthusiasts was...

Top 5 Crypto Invoice Services for Making Business Administration Simpler

In the current economic landscape, the cryptocurrency’s worldwide adoption is picking up at an ever-increasing pace.

Data-Intensive Sector Has A Lot More To Explore With Blockchain Technology

Blockchain technology in Data-Intensive sectors is gaining huge recognition in the market. It is used in building...

4 Tips on How To Succeed on Bitcoin Trading

Bitcoin is a type of cryptocurrency which has grabbed the attention of countless people from different countries....
- Advertisement -

The First Cryptocurrency Bank License Is Now Granted

This is a historic development. A milestone in Bitcoin's path to broad acceptance and recognition. The State...

Yield Farming Program “Volcano” Kicks off Dutch Auction for Cryptokitties KittieFIGHT Game

In the fall of 2017, along with the rallying of Bitcoin and other digital assets, Cryptokitties dominated...

Must read

- Advertisement -

Read Next
Recommended to you