Cryptocurrencies are in a Bubble: What the Insiders are Saying


Crypto-currency is something very new and very different in today’s market. Those who find out about it for the first time are instantly doubtful. They claim that crypto-currency is “in a bubble.” Implying the delicacy in its status, and how even just a tiny little poke can have it exploding and disintegrating into nothingness.

Now, there are a lot of reasons as to why people believe this, but whether or not those reasons are reliable, is something you’re going to have to conclude yourself.

 What are the insiders saying?


  1. Volatility – One of the most mentioned topics in the argument is, volatility. The main reason people think it’s stuck in a bubble, is because of the market’s extreme volatility. The market for bitcoin, for example, can lead to dramatic drops of 15-50% in just the course of one day which is very frightening. Pro-bitcoin netizens combat this argument by saying the drops are not permanent, and it usually makes a quick comeback in a matter of hours. Personally, the risk of the market dropping every now and then isn’t really what is scary, the scary part is if the drop is permanent.
  1. Limit – If you didn’t already know, there is a limit in how many bitcoins are available, and this is a mathematical constant that isn’t going to change any time soon. So long as this limit exists, the marketability of bitcoin will continue to rise. This is different from something like gold, wherein the mining of it, can change the rates at a slow but steady rate. People from both sides say, that as soon as this changes, that if for some reason the limit gets taken away and virtual mining becomes a reality- then the cost of bitcoin is likely to drop.
  2. Mentality – There is a different kind of mentality right now in the bitcoin community. Because it’s something fairly new, there isn’t many available ways to use bitcoin. So most of the transactions exist between buyers and sellers trying to one-up each other, in buying bitcoin at the lowest prices possible, and then selling it back at insanely high-prices. Until this mentality disappears, bitcoin will remain in a ‘bubble.’ However, if more and more companies and businesses begin to accept bitcoin as a form of currency – then perhaps the bubble will continue to blow until it surrounding it explodes.

Obviously the argument will probably continue for a while, but as time passes, more and more people are rethinking their stance on bitcoin and starting to accept is a regular thing. One by one, business are starting to open their doors to the idea, and the more this happens the better life-expectancy bitcoin will have. Right now it’s a niche, but if crypto-currency is able to get out of this supposedly self-imposed ‘bubble’ then the possibilities are endless. It’s up to you to know what you’d like to do with this information. Pro-bitcoin or not, it certainly has a lot of people talking!

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