Cryptocurrency-Bubble or reality
- sixpl3
- May 23, 2018
- 2 min read
Okay, you think it’s a bubble so let it be a bubble. But the point is this bubble is getting lot of attention and is bringing investment in infrastructure. Are you familiar with dot-com boom, a whole lot of people has suffered loss of paper money in it, but it has successfully managed to bring us a cheap worldwide fibre backbone and companies like Amazon and Google. Today cryptocurrencies are walking the same path.
Cryptocurrencies have hiked the concept of hash values, which is nothing more than a table of numbers like “address A: 10,000. Address B: 20,000,” covered in genuine blocks of code(the ERC20 and ERC721 standards, for fungible and non-fungible tokens respectively) so that they can be easily carried out for further transactions.
Cryptocurrencies are ruling the market and their popularity has confused the bankers so they are trying their best to buy as much cryptocurrencies as they can. Asia is craving for cryptocurrencies and Japan government has already officially accepted the bitcoin.
People are ready to dive in the sea of cryptocurrencies. They are doing more cryptocurrency transaction than ever before. With business giants like western union, JP Morgan, and other reputable institutes openly embracing the culture of cryptocurrencies in the market. We are bound to see the growth in the cryptocurrency market.
Though, few market experts say cryptocurrencies are in bubble and because of the following reason they say so:
There are many cryptocurrencies in the market but few of them do not even have a working product. For example, Cardano at the time of writing it is valued at 8.9BN but its product is still on the paper. Projects like Aion and Ark are designed to act as a platform between different blockchains but sadly many of them do not even exists.
Bubble market is ruled by rumours and emotions. One such rumour is of Verge having a a game changing partnership made the crypto rise from $0.025 in mid May 2018, to $0.115 on April 17th (a rise of approx 350%). When the collaboration with PornHub was declared the Verge price dropped and came to a new low of $0.06on the 19th of April. The fluctuation in the price of Verger is an example of investors buying the rumors and selling the fact.
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