I will explain why people call bitcoin a bubble. First and foremost, it is very difficult to say, because times have changed, and we are entering a digital age. In the Digital Age everything changes rapidly, so we must educate ourselves with the new rules of the game. Bitcoin represents FREEDOM from FIAT currencies, which are the very cause of financial bubbles. I have talked about quantitive easing before which explains some of these issues. Bitcoin is NOT a financial bubble; instead Bitcoin is a new digital currency with no borders. People refer to it as a bubble, as they only can compare to other bubbles like the tulip bubble, or housing bubble, or even the dotcom bubble. We really shouldn’t compare Bitcoin to any of these bubbles, as we have never experienced anything like this, but the closest we could compare Bitcoin is the dotcom bubble. Being more specific, if I have to compare something to dotcom bubble, I would say that we have a cryptocurrency bubble, or ICO bubble, instead of Bitcoin bubble. Back in the dotcom bubble there were hundreds of technology companies, and each of them were getting founded with crazy amount of money, but 10 years later there are only few companies left and the rest of them have disappeared. Back in a Dotcom bubble, if a company announced publically they have a website and selling movies on demand like Enron did, suddenly their stock gone through the roof and the company just became 100 million dollars’ worth more. While in the back ground, they had no movies to provide streaming, no technology was existed to accommodate these functions; all they had is an announcement. And this is exactly what happened with the cryptocurrencies and new ICO-s as well in 2017. Every new ICO that announced something fancy, like its faster than Bitcoin, more secured, or more anonymous, all started pumping, while there was no product, only promises. I have seen many of these companies coming up onto top 10 cryptocurrencies in terms of market capitalisation, and suddenly, once they could scam people anymore, they completely disappeared. Some of these major scams and ponies finally gone busted like: bitconnect, onecoin, secretion, litecoin red, high reward, or parodies like jesuscoin, bitcorn, true coin, Saladin coin, and so on. As you see, it seems like we are in a cryptocurrency bubble right now, but Bitcoin is something else.
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