CRYPTO-CURRENCIES NEWS: Will The Bitcoin Bubble Burst?

Bubbles in the markets are not a rare phenomenon, but the boom of bitcoin, a popular digital currency, is not entirely common. And although, now the price of bitcoins has slipped from a maximum to $ 2,200 - $ 2,500, yet, over the past two months, it has shown a gain of more than two times. Anyone who turned out to be sufficiently perspicacious or lucky to buy bitcoins for a thousand dollars in the distant 2010, when one coin was worth only $ 0.05, now would have owned $ 46 million. Besides bitcoins, other crypto currencies also increased in price, increasing the total market value to $ 80 Billion.

Such a sharp rise, as a rule, is not sustainable. And now bitkoyn increasingly begins to associate with the bubble. But the important question remains, what caused its price so rapidly to grow. Speculative moods? Or evidence that bitkoyn gorahdo plays an important role, as a means of exchange or accumulation? That is, does the current situation with this crypto currency remind that what once happened to tulips, gold and the dollar? Or is this jump of a different nature?

Suppose that what is happening with bitkoynom is nothing more than virtual tulipomania - speculative hysteria, when the price increase forces you to buy more and more, regardless of what the asset itself is. And in the last ascent bitkoyna really has something manic. Small investors entered the game. And many, already familiar with investing in bitkoyn, switched to alternative crypto-currencies, such as the Etherium or other cryptonyms produced by ICO in a variety of companies.

And everything looks like a paradise for scammers, but unlike tulips, bitkoyn has real application. Now you can buy literally everything from pizza to flight to space . Therefore, tulipanomania is not an absolutely correct analogy. How about gold ? Undoubtedly, bitkoyn, at first glance, is very similar to gold . "Golden beetles" do not trust the government and their printing presses. As well as bitcoyne gourmets do not recognize any central banks. But the savings tool should not jump the way bikoyun used to it: its price dropped from $ 1,100 in 2013 to less than $ 200 a year later, to rise again to today's dizzying peaks.

Instead of being just a form of digital gold, bitkoyn strives for more ambitious goals - to become a full medium of exchange, like the euro, the yen or the dollar. And regulators are starting to take bitkoyn seriously. The rise in value can partly be explained by the decision of the Japanese government to consider bitcoins like any other currency. But the Bitcoin system is operating at the limit and its developers can not reach a consensus on how to increase the number of transactions per unit of time. As a result, now the commission for one transaction is, on average, $ 4 and (if less) the completion of the transaction requires long hours to confirm it. Therefore, for ease of use, a dollar bill can easily leave a bitkoyn far behind.

As A Dock, Only Better

If bitkoin and other crypto-currencies do not look like everything else, then what can they be related to? The best comparison seems to be with the Internet and the dotcom boom, which he spawned in the late 90s. Like the Internet, crypto-currencies are both the embodiment of innovations, and encourage their further development. In fact, they are an experiment on how to conduct a public database of transactions (blocking) without someone else's management (bank). For example, Georgia uses blocking technology in order to secure government documents, and various block-platforms provide space for new experiments.

Take, for example, the Etherium. This platform allows you to receive financing for various projects, from video games to online trading platforms, through the release of tokens - in fact, currencies that you can buy, sell and use within projects. Although, to treat such tokens with caution, they can still stimulate interesting inventions. Supporters of such platforms believe that they will serve as an impetus for the emergence of decentralized start-ups capable of competing in today's oligopolistic technology market for companies such as Amazon and Facebook.

This way of developing innovation seems rather risky. Investors can part with the last shirt, and the fall of one asset class can spread to others, leading to a shock to the entire financial system. But, in the case of crypto-currencies, these risks can be quite limited. And one can not say that those who buy crypto-currencies are not aware of the potential risks. And since such platforms are quite autonomous systems, the likelihood that harmful events in one currency will have an impact on the entire market is highly unlikely.

If you could imagine a healthy bubble, here it is, in front of us. At the same time, it should be recognized that regulators should ensure that crypto currencies do not turn into a channel of criminal activity, for example, they were not used for drug trafficking. Governments should think twice before starting to deal with crypto-currencies and, in particular, with the holding of ICO companies. Too tough actions can not only pierce this formed bubble, but also deprive us of very useful for the whole society of innovative solutions.