Everyone has their own opinion on cryptocurrency. While that is a good thing, one also has to point out that some people are completely wrong in their assessments. For instance, Richard Bernstein claims cryptocurrencies are nothing more than “Candy Crush tokens” and have no inherent value. That is a remarkable stance and one that clearly shows a bias against cryptocurrencies in general.
RICHARD BERNSTEIN DOESN’T LIKE CRYPTOCURRENCIES
There are quite a few financial experts who do not like cryptocurrencies all that much. No big surprise there, as cryptocurrencies pose a major threat to the traditional financial system as we know it today. Bitcoin is a perfect example of a global currency which has nothing to do with banks and governments. Although it is not a perfect form of money, it does offer a lot of features which one cannot find in bank-issued currencies today.
Even so, Richard Bernstein envisions no real future for Bitcoin and other cryptocurrencies. In his mind, a cryptocurrency is equivalent to the tokens earned by playing Candy Crush. It’s a remarkable comparison, even though Candy Crush tokens allow players to further advance throughout the game. They have no monetary value, yet can be purchased with normal payment methods for those who wish to skip ahead without putting in too much effort.
Comparing these tokens to cryptocurrency implies that anyone investing in Bitcoin is looking for shortcuts to strike it rich. While it is certainly true that a lot of early Bitcoin adopters are swimming in millions right now, this is not a get-rich-quick scheme by any means. If the current trend is any indication, there is still a long way to go until the Bitcoin price reaches its previous all-time high.
As one would expect, Bernstein is one of the many financial experts who take offense to Bitcoin’s price gains in late 2017. The astronomical Bitcoin price increase eventually led to a massive collapse, which are two telltale signs of a financial bubble. At the same time, a bubble can only occur once interest wears off after the crash, which is not what is happening with Bitcoin and other cryptocurrencies as of right now. Instead, overall demand still seems to be increasing, which is pretty interesting.
One thing Bernstein gets absolutely right is that not all cryptocurrencies are equal. They differ greatly in usability, value, and potential. Anything outside of the top 20 still has everything to prove. Even within the top 10, there are some cryptocurrencies which are valued well beyond what the projects are worth at this stage. Bitcoin will always remain the safest bet for speculators and investors, for obvious reasons.
Whether or not the comments by Richard Bernstein will be taken seriously remains to be seen. Anyone can make up their own mind when it comes to cryptocurrency and their true potential. The first quarter of 2018 has not been kind to Bitcoin and altcoins, but the momentum is turning in favor of cryptocurrencies.