Don’t fall for the hype — Why Bitcoin’s $10,000 Price Doesn’t Reflect Its True Value
Good day! Grandpa here. I would like to share a few highlights from an article about Bitcoin I really enjoyed by Miguel Cuneta over at decentralize.today.
In it he writes about the future of Bitcoin and Blockchain technologies while sharing very good insight. He also shared a few graphs that show the former bubbles that popped for Amazon and even Apple throwing people into a panic yet look at them today.
I’ve pulled a few quotes from the post as well as a few images for you. Enjoy.
Bitcoin is now the 6th most valuable circulating currency in the whole world, and it did this in about eight years, with roughly only about 0.01% of the world’s population owning or using it.
“Technologies of tomorrow like robotics, Artificial intelligence, autonomous machines, and the Internet of Things will not use credit cards, a technology never intended for an online network, but will use blockchains and cryptocurrencies, with Bitcoin as the global reserve. This is almost a certainty.”
Wow! Bitcoin as the global reserve! That’s some forward thinking!
“Over one third of a trillion dollars. That’s the total amount of cryptocurrencies in the world. $165 Billion belongs to Bitcoin alone, which just shows how dominant network effects can be. Because of Bitcoin technology, the power to create and exchange money was granted to every person on earth and is no longer the monopoly of kings and oligarchs. The printing press did the exact same thing for the power to create and exchange information, which started the renaissance and led to the industrial revolution. It’s a return to the original spirit of why money was invented in the first place.”
Love this one!
“Bitcoin and cryptocurrencies will make a lot of people financially independent, and that’s a great thing. Millions of people who never had access to capital will be able to pursue their goals and build things that could ultimately help humanity as a whole.”
Right on! Let’s do this!
“We could be watching one of the biggest financial bubbles in history unfold with this cryptocurrency mania. Yet on the other side of the coin, there is also the non-trivial possibility that we are witnessing something remarkable happening before our very eyes — the return of the separation of cash and state.”
In the same way the dotcom bubble burned over six trillion dollars back in 2000, Bitcoin and cryptocurrencies will probably go through the same cycles. Bubbles establish the true players in the market and eliminate all the ones who are there for a quick buck. What’s important is that the technology is real, and it is here to stay.