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Why People Still Think Bitcoin Is a Bubble, and Why They Are Wrong
New things are always hard to accept
Bitcoin has now, for many years, been the most popular cryptocurrency on the market. This is because it and other cryptocurrencies are founded on blockchain technology — a decentralized network where transactions are recorded on a public ledger. As a result, people buy bitcoins to make payments or money transfers without going through banks or other payment companies.
Nevertheless, there are still people who think that bitcoin is a bubble. They believe that the market will crash and everything will be worthless once again. Let’s look at the reasons why they are wrong, however.
Bitcoin is not a bubble mainly because it cannot be compared with bubbles from the past. Unlike major bubbles of the past, bitcoin has utility and far better prospects. Furthermore, it differs from all currencies in that it is not backed by anything tangible, such as gold or silver. Many consider this as a downside, but that is, in fact, its selling point. We can argue that bitcoin is backed by the goods and services sold through it and trust in the network itself. Therefore, being a cryptocurrency, it will not have any inflation.
Bitcoin is different from other currencies in that there is no central authority, such as a…
