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Bitcoin Opinion: Why Context is Important When Talking about the ‘Crypto Bubble’
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The fact that the bitcoin price has been crashing for the past month has led some people to have some hilarious reactions.
From rage-quitting crypto-trading and investing to astonishing doomsday predictions, it’s really fun to sit back and watch all madness.
However, I feel like it’s also my duty to step in and calm things down for a second. Honestly, this “crypto-bubble” you’re tired of hearing about hasn’t popped.
It hasn’t even begun to form.
If you don’t believe me, you’re in for a treat, for today we’ll discuss how perspective and the ability to see things abstractly is an asset when properly used and why so many people lack the vision to see things clearly.
I’m not saying I’m an all-knowing guru. That’s not the point.
The thing is that people get excited and really want to work for those likes and shares. That’s all fine; it’s the world we live in today, not here to judge.
But, c’mon; at least have the decency to put things into perspective. Do you know how big the dotcom bubble grew before bursting? Do you have any idea?
When the dotcom bubble exploded, close to 20 years ago, the total market value was around $6.7 trillion. In today’s money, the value of each USD is about 40 percent lower. This simply means, if you were to compare to 2000’s prices to 2018’s prices, this bubble would have reached more than $9 trillion.
See where we are now?
We’re about 1.5 percent into the bubble. How frightening.
How Much is Crypto Worth?
Right now, the current mindset is that cryptocurrencies are in some sort of downward spiral, with no hope ahead. According to some news sources, that is.
Obviously, when we look at the bigger picture, we can clearly see that is not the case.
With the most recent developments in Lightning Network technology, a Bitcoin peer-to-peer scaling solution, we’re now starting to see considerable more adoption, as more nodes join the network and the number of active connections and transactions increases. As CCN reported:
The entire cryptocurrency market cap has devalued more than 70 percent since its peaks highs close to $1 trillion, during early January this year, which has led some people to believe we’re finally out of luck, and there is little hope crypto will recover any time soon.
Of course, it’s always at the most desperate moments, when hope is all but gone, that we’re given another chance.
I don’t think we’ll see prices for such low prices for much longer. Soon, there will be an upwards correction.
If you need more fundamentals, besides Bitcoin’s hash rate maintaining a steady uptrend and more people actually using bitcoin in countries like Venezuela (which kind of proves its point), we could use, perhaps, an alternative argument.
kind of view