Published on January 3rd, 2018 | by Guest0
Why The Bitcoin Bubble is Not Likely To Pop Anytime Soon [Infographic]
In a recent interview, Warren Buffet, one of the world’s most recognized and respected investors, doubled down on his stance that Bitcoin lacked intrinsic value and was merely a bubble. It is easy to understand why Mr. Buffet believed so, however, it is not something any Bitcoin investor needs to worry about anytime soon. As Bitcoin continues its bullish ways and more and more people begin to adopt it, Bitcoin will likely see continued growth and returns well into the future. As revealed by Bitcoin Casinos facts and information on Bitcoin’s rise over the past 8 years, the crypto-currency has overcome a plethora of attacks, bad press, and poor market predictions to beat everyone’s expectations, including Mr. Buffet’s. Here is why even if Bitcoin is a bubble, it will not likely pop anytime soon.
Bitcoin Hasn’t Reached Its Adoption Peak
For a bubble to pop in the market, the maximum adoption limit must be met. As long as Bitcoin still has room for further adoption by both individuals and businesses, its so-called bubble will continue to grow. Considering that Bitcoin is only now seeing mass-market adoption by businesses, governments, and users, it is nowhere near that breaking point. Recently, Japan announced Bitcoin was legal tender in the country and it is estimated that, by the end of 2017, over 300,000 merchants will accept it. Though these adoption rates are high, only 5.8 million digital wallets exist. This shows a huge discrepancy in who accepts Bitcoin and who is using it. Users will likely continue to grow steadily to make up the difference, further pushing up prices for the foreseeable future.
Social & Political Factors
A quick look at mainstream media points towards high levels of political and social instability in our world. Bitcoin is a great hedge against this instability due to it not being tied or issued by any government. Many people, especially in regions facing political instability, will continue to hold Bitcoin in the event that a financial meltdown, war or famine were to happen. The current political environment will only fuel the bubble and Mr. Buffet is failing to see that Bitcoin is the internet’s version of a hard commodity, like gold or real-estate, as it can be converted rather easily and isn’t dependent on government or market stability, In fact, Bitcoin thrives on both.
The Internet Generation
Another factor that isn’t being taken into account is the fact that Bitcoin is this generation’s currency. For the internet generation and those that grew up on the world wide web, Bitcoin is theirs. It is more valuable to this generation than gold or real estate is and it is coveted by this generation just as their parents and grandparents coveted gold and land. As more of these youngsters enter the investment market, Bitcoin will continue to grow in value and the bubble will not pop until they move on to something else.
Where to Get the Facts
With all these factors taken into consideration, it is easy to see why the older generation would assume Bitcoin is a bubble. Considering that this bubble has lasted well over 8 years at this point and has weathered its fair share of storms, Bitcoin is here to stay and the bubble will not be popping anytime soon. For more information on Bitcoin and its huge success, check out these 62 amazing facts and decide for yourself if Bitcoin is just a fad or a true free market revolution.