Appreciation of assets has changed its phase and has seen an incremental trend. The inception of Bitcoin in 2008 by Satoshi Nakamoto has stirred a revolution in the world of cryptocurrency. It is easy to handle the electronic method of storing your money which is unaffected by any fluctuations in the market. The value of Bitcoin has steadily risen from $1 per unit to $10,089 per unit and has taken the form of a bubble in asset equation. Now the question is: will Bitcoin be the most significant bubble?
If you look at what has happened in the past when it comes to reaching those type of heights, be it tulip bulbs or a bunch of other things over the centuries, the odds are against those who actually think that this is going to be the future.
Stefan Ingves, Governor of Sveriges Riksbank
Bitcoin might result to be the biggest financial bubble of all times
According to the Birinyi Associates, who studied ten asset bubbles in the market, Bitcoin surpassed all of them, and it had rated as the third behind the Mississippi bubble and Qualcomm.
Bitcoin was said to be the biggest of all the ten asset bubbles that includes tech bubble, Beanie Babies, and Dow in 1929. Even the silver bubble of 1970 was studied and compared.
The present trading value of Bitcoin is $16,235 which rose from $1000 at the start of the year. Then it took a downward trend of $11,000 at the beginning of last week.
The comparison has been drawn taking into consideration the bubble trends of Beanie Babies, Qualcomm, and even NASDAQ. It looks like Bitcoin is the most promising one.
Michael Novogratz, a former Microhedge fund manager of the Fortress investment group, said that he would prefer to sell Litecoin against Bitcoin as the latter is termed as “Fast Money.”
The convoy analysts included that the prices of Bitcoin have gone up 17 times last year and 64 times in the previous three years. They said that the last 22 months’ data was brought back to match the records, and it was seen Bitcoin was the all-time high.
Bitcoin has taken up almost 50% of the cryptocurrency market
Last June, the combined capital market hit $404.4 billion according to CoinMarketCap. The value of Bitcoin alone is more than 50% of it. There are altogether three digital currencies with a market value of above $10 million. They are being called the high flying IOTA. There are almost 18 with a value of more than $1 billion and a total of 90 digital currencies that have cost more than $100 million. Moreover, some blockchain enjoyed 5,300% rally last year, bringing down the market cap to $42.3 million. Some regard UBS bullish by blockchain but not Bitcoin.
Is Bitcoin just a bubble waiting to be burst?
Well, a year-long chain of the Bitcoin looks like a curved hockey stick. Cryptocurrency has gained value in the long run.
But, the fact is that many are turning their lifelong savings into Bitcoin. Let us see the reasons that make it worth it.
- It’s a trend, and everybody talks about it.
- Crucial life decisions of people are made based on it.
- The future predictions are extreme.
- The future projections have been shouted down.
Some people predict the future value of Bitcoin to be $50,000 or more in less than a decade. It looks like this is the most promising sector that people can invest money in. When you compare it to Tulip Mania, people made considerable profits in those initial months. But the sudden confidence dropped, and the Tulip market faltered, leading the market to shatter and produce a drop.
Earlier in 1990, people did the same thing with Beanie Babies, which were $5,000 each and were expected to skyrocket but that weren’t a perfect analogy.
People had faith in the Dotcom bubble, but the same crashed after people suffered on a few investments. People bought shares with an online business, but the world has seen the failures with companies dealing in e-commerce.
Investors have shown the same amount of confidence in NASDAQ, but the appreciation value never touched even three-fourths of Bitcoin. Some private companies have accrued their mass valuations in their assets.
Defining and identifying a bubble is a difficult job
Who is the person to determine value and price? Yes, it is a difficult task to say. They are the co-creation of buyers and sellers, of course. The amount of Bitcoin has doubled this year. It was worth $1,000 last May, and it has increased to $2,000 by June.
By the time of Thanksgiving it was $8,000, and after two weeks it reached $16,000. Although Bitcoin has no profits, it’s not even a company but just running in the values of decentralized networks of computers around the world. Since dollar never doubles itself, but Bitcoin did, people tend to have more faith in the trending bubble of Bitcoin.
Cryptocurrency might be a significant correction, but the long-term value remains a mystery to many investors.
How do I earn Bitcoin?
You can find many ways to earn Bitcoin other than just buying Bitcoin from cryptocurrency exchanges.
- Mining: The very first way to earn Bitcoins is through mining them. In 2009, every block excavated had a reward of 50 BTC.
- An investor has to do some work for Bitcoin: You may earn it as a freelancer or might be from the companies who offer the option of getting regular paychecks in BTC.
- Something is required to offer for Bitcoins: By selling something for crypto, you may get something homemade or accept something in BTC.
- You may go for gambling and casino games: One of the active ways is to gamble through Bitcoin gambling. There is no guarantee of a win but just a mere chance.
- You may use various Bitcoin faucets: By using faucets, you may earn little currency in a considerable period.
- You can boost your trading skills: Bitcoin trading is similar to gambling and involves high risk. You may earn the three tips to profitable trading and then start trading for Bitcoin.
It’s best to earn the Bitcoin or put your savings into it. Regarding winning you may get a lot of tips from the company dealing with Bitcoins. The history of cryptocurrency has seen Bitcoin trading to multiply value wise.
Well, you may earn the Bitcoin online involving specific risks. But the fact remains the same that Bitcoin has seen a significant uprising regarding asset value and people are investing here blindfolded since they have seen a considerable possibility of the asset bubble.