For years, people worldwide have been asking a pertinent question about the crypto industry: Is Bitcoin a bubble? Let’s try to figure out whether there’s some truth to this or not.
Is Bitcoin a bubble?
Firstly,
a “bubble” in the financial world is when assets are overpriced and carry zero
intrinsic value (or offer very little).
Facts to know about Bitcoin:
It has a limited supply of 21 million coins.
Unlike fiat currencies, of which governments can print an infinite amount,
causing inflation, Bitcoin’s supply will never be altered or manipulated (you
can thank Satoshi Nakamoto for baking that rule in Bitcoin’s code).
It’s
decentralized. Bitcoin is a decentralized network, meaning no single entity,
corporation, or government can control it. This, in turn, makes it impervious
to censorship and manipulations.
Innovative
technology. Blockchain technology, which is Bitcoin’s underlying technology,
has the potential to revolutionize myriad industries, from finances to supply
chains. The technology is still in its infancy; however, its value is expected
to increase exponentially as it expands and permeates more industries.
Increasing awareness. More enterprises have
begun accepting Bitcoin as a payment method, making a case for the predominant
cryptocurrency’s legitimacy as a means of payment and transferable value.
A
secured asset. Bitcoin is often called “digital gold,” serving as a safe haven
from economic uncertainty and a store of value. Since economies worldwide have
been facing turmoil and volatility, investors have been seeking alternatives to
traditional assets and turning to Bitcoin.
Crypto
proponents believe that Bitcoin and blockchain technology will continue to
develop. But until Bitcoin and blockchains have better use cases (which improve
and expand every year), we can only look at cryptocurrencies optimistically
while using the word “bubble” with caution.
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