Bitcoin is in a bubble. That is obvious to anyone who has even the passing interest in cryptocurrencies. Money is pouring into the currency faster than Noah’s flood. Cyberspace is filled with commentary on every fluctuation and stutter yet the majority of what is said is babble, fill or rubbish.
My interest in cryptocurrencies is not in speculation. Free money is nice to have but is not that rewarding. Instead, I am fascinated by the opportunity to create money that is independent of national control and based not upon an arbitrary commodity or the relative strength of a country’s economy but rather an underlying trust and contract between people.
National currencies can be influenced by governments, both internally and externally. Countries can exert power over others by playing with their coinage. Print more and you cause inflation. Devalue your currency and you get a temporary boost in exports. Cryptocurrencies, in theory are outside such influences. They are based upon the commodity of trust and this is why governments are nervous of them and why I hope they succeed.
I am a hopeless optimist and bleeding heart liberal who believes in the goodness of humanity.
The truth is though that nobody really knows what is going on with the market. One day the value goes up and the next it goes down. There is a lot of volatility. Headlines such as these just add to the confusion: Bull Grip Weakens As Bitcoin Price Breaks Below $7000; Bitcoin: The World’s Most Dramatic Bubble Ever?; Money is pouring into bitcoin cash after bitcoin crashed more than $1,000 in 48 hours;
Bitcoin Price Decline Continues As Markets Drop Below $6,500.
Here is my prediction though: The price of bitcoin will either go up or down, though it may stay the same. If you are interested in cryptocurrencies then buy into them but be clear about why you are doing so.