(The following is an opinion by the author and does not represent financial advice nor you should you take it as such. Always, do your own research.)
As you may have heard, there are a lot of mainstream FUD about Bitcoin being a bubble, and it’s bursting. This is just not true, and there are several reasons to support that Bitcoin is not and will never be in a bubble.
Reason #1 – We have seen similar price movements every year
Since Bitcoin started trading, we have seen crashes every year, and every year we see a new high. The so-called financial experts go on TV and say that the “bubble is bursting” and “this is the end of Bitcoin.” This year is no different. These people that hate Bitcoin and crypto are out there again saying that all crypto is doomed to fail. Just to put things into perspective, the start of 2017 Bitcoin took a 60% loss and rose to new highs a few weeks later. To put things into perspective check out this Bitcoin historical correction here. You can see the same pattern repeat itself over and over. The cycle this year seems to be mimicking 2017 “crash,” even though, we may not have seen the bottom yet for 2018.
Reason #2 – We all know the coin supply of Bitcoin
The mainstream media might take the coin supply of Bitcoin and twisted as a negative feature. In truth, knowing exactly how many Bitcoins there will be is a huge advantage. Ask yourself, if you knew the total supply of gold, do you think the price will be reflected negatively? If we knew exactly how much gold there is in the world, the price would most likely skyrocket. But with Bitcoin, we know that there are only 21 million coins, and the last coin will be mined in the year 2140. The coin supply of Bitcoin cannot be replaced if lost. There is an estimate of about 1 to 2 million Bitcoins are lost forever. So this means that the actual circulation supply of Bitcoin will obviously be much less and rarer.
Now think of this, as Bitcoin becomes more mainstream and more people join the cryptocurrency world, the Bitcoin supply will need to be divided among the new investors. With more investor wanting a piece of the known amount of Bitcoin, the price has only one direction, which is up.
Reason #3: Bitcoin is still the major pair in the cryptocurrency exchanges
If you want to buy other cryptocurrencies, you have choices. Some exchanges, like Coinbase, allow you trade crypto with fiat but the most common traded pair is with Bitcoin. Same story if you use Bittrex, Gemini, Kraken, Ploniex, and others. This re-enforces Reason #2, the more Bitcoin is share, because of its limited supply, the bigger the demand. And, with bigger demand, comes natural growth.
Reason 4 – “Experts” never explain why Bitcoin is in a bubble
Every time a video or article about Bitcoin appears and so-called experts say that Bitcoin is in a bubble, have you noticed that they don’t actually explain why? They use phrases like “it has no value,” “Bitcoin is a fad,” “It’s a classic bubble,” and the list goes on. They call Bitcoin a “fad” because they don’t understand it. They call it a “classic bubble,” but don’t explain what this means. They brand Bitcoin as having “no value,” but the truth is, Bitcoin has plenty of value as you can see in this video. They say these things about Bitcoin because they don’t know what to make of Bitcoin. In reality, Bitcoin is something that no one can predict what will do and if they don’t understand something, they will dismiss it and demonize it.
Reason #5 – Adoption is growing
It seems like every day someone is adding bitcoin to they payment method. Also, the addition of Bitcoin future and Bitcoin IRA gives Bitcoin more legitimacy as a store of value. There is no doubt that Bitcoin will continue to see more adoption this year and with time it will become a valuable asset much as gold or silver. Click here to see a list of some of the major retailers that accept Bitcoin.
Reason #6 – No one controls Bitcoin
This reason is probably the most important one. For decades, the central banks had the control of our money supply. The banks control pretty much control our financial lives whether we like it or not. However, Bitcoin changed status quo. The blockchain technology proved that we don’t need a third party controlling our financial lives. Bitcoin is self-governing and decentralized. This means no one can control or manipulate the supply of Bitcoin. It also means that Bitcoin transactions can never be erased or coerced. A consensus is needed to propose changes to the Bitcoin network. Bitcoin is a true democracy and gives power to the people. Bitcoin takes control away from the banks. This reason could be why banks are so scared of Bitcoin, and they will no doubt try to destroy it.
Conclusion
Bitcoin cannot be a bubble because we have seen almost identical volatility every year since trading open for cryptocurrencies. Knowing the coin supply of Bitcoin give us a huge advantage because we already know in advance how rare Bitcoin will become. Bitcoin will be more difficult to accumulate as more people enter the space.
Bitcoin is the preferred cryptocurrency trading pair against other alternative cryptocurrencies. The demand of Bitcoin will only increase as more alternative cryptocurrency enter the market. A big plus for bitcoin. Also not elaborated here is the addition of ICO’s entering the scene that adds another layer of demand for Bitcoin.
The so-called experts cannot explain why Bitcoin is in a bubble. These people that go on mainstream media talking out of there you know what without having a complete understanding of bitcoin or maybe they are lobbying on behalf of the central banks. Whatever reason they have to talk nonsense about Bitcoin, it’s clear they do not want Bitcoin to succeed.
Adoption is growing every day for Bitcoin, and it’s going under the radar because of the FUD being spread about Bitcoin. From financial institutions to retailer, are recognizing that Bitcoin is an asset that will not go anywhere anytime soon. So these entities are embracing the future as they should to stay ahead.
Finally, Bitcoin is not controlled by any one group or individual. This is the whole point of Bitcoin. Bitcoin is a self-regulated decentralized system that is open to anyone with a computer and an internet connection. Bitcoin allows anyone to take control of there financial as they see fit without having a third party dictating, penalizing or potentially freezing assets on a whim. Bitcoin is ultimately the pandora’s box to the central banking system.