Hello all my Steemit Friends !!!
In this Blog we will discuss about Is BITCOIN really Bubble or is it Boost?
We will try our best to make you understand.
As we are seeing that BITCOIN and other Crypto Currency are the Trending among all markets from around last so many years.
We have seen that many People used to say that BITCOIN is a bubble. But according to my study We can't say BITCOIN is a bubble.
So let me explain you my views about it :
We can define Bubble as a quantitatively it is an exponential increase in a price over a short period time only.
So by quantitative perspective BITCOIN can be said as a Bubble.
But I will explain it by one another perspective also.
Now by going through Qualitative analysis I don't think Bitcoin is a bubble.
Now let me explain in detail :
Certainly Bitcoin has been impacted by reinforcing loop and that is a feature of bubbles. But it would structurally differs in many key areas from a bubble in many regards. Increase in continuous Price is a combination of low availability and lack of liquidity. And Most of the Current Bitcoin holders don't want to sell their Bitcoin's.
But to the extent new supply also exists. And it generally comes from miners.
So the continuous rise in price reflects that the most of the holders don't want to sell their Coins and that makes a situation like high demand and less supply. That type of situation makes Price to Increase.
So basically in easy terms we can say increase in the Price of Bitcoin occur when there are not many sellers willing to sell their Coins. And there are holders which relatively immune the psychologically to falling prices. Because of their Belief that Bitcoin will change the world.
As a whole BITCOIN and other Crypto Currency are a type of digital Currency which are used as a payment method and from my point of view they will gonna replace the banking service in future.
I hope you have understood something about this. I tried my best to make you understand in a short time.
Now tell me What you all think is BITCOIN a Bubble or a Boost?
