Really, Is Bitcoin a Bubble?
By seeing the following 10 slides, anyone with a brain can easily understand whether Bitcoin is a bubble or not.
1. Bitcoin is legal in El Salvador and being accepted as payments. Also, Japan’s Payment Services Act approves Cryptocurrencies as payment methods.
2. Bitcoin was invented to eliminate intermediaries (like banks) to make transactions and at the same time to reduce the transaction charges as much as possible.
3. As of 2022, big giant companies Microsoft, Wikipedia, Gucci and AT&T accept bitcoins as payments across the world along with over 36% US based companies.
4. No one owns the Bitcoin blockchain network, it is completely decentralized. Therefore, it is simply a people’s currency backed by their trust. It will never burst like a bubble if people don’t lose faith in this cryptocurrency.
5. Bitcoin is very fast as compared to conventional banking e.g. where wire transfer takes 3-7 days to complete the transaction, Bitcoin network completes the same mostly within 30 minutes.
6. It has given 46000X returns since launched which means $100 USD investment in Bitcoin in 2010 has now turned into $46,00,000.
7. Business pioneers like Tesla owner Elon Musk are fans of cryptocurrencies. He made a meme coin, Dogecoin, one of the most popular virtual currencies.
8. When it comes to Bitcoin acceptance as legal tender, governments of different countries have shown mixed reactions like Japan accepted it openly, Egypt termed it as Haram, and countries like India neither accepted nor denied cryptocurrencies.
9. Bitcoin primarily goes through 2 faces: Bull and Bear also known as Crypto Winter. Sideways face where BTC prices remain in a range does not scare people and nobody talks about Bitcoin Bubble.
10. But as soon as crypto winter starts, BTC prices drop a long way. The word Bubble starts buzzing around. Understand, as per the previous Bitcoin data, in crypto winter, coins prices may drop by 70%-80%.