I kind of keep questioning if there is any relation about historic-bubbles and cryptocurrency, as we all know history repeats itself.
Pretty much before 1971 currency was backed by gold, silver or other precious metals, and it was until 1913 that the federal reserve act was born, a centralized bank manipulating gold reserves keeping foreign investors from cashing out their stocks in return for their gold, mainly Europe. Realizing that gold was no longer needed for controlling credit, securities was used as collateral for additional currency, henceforth the great depression happened.
As we can see, everything was manipulated including the 1933 gold confiscation (gold nationalization) and silver to finalized gold and other metallic standard.
Now lets look a bitcoin for example;
it is not centralized.
is bitcoin backed by anything?
... the answer is no, but is not that bad at all, bitcoin's value comes from our common belief that bitcoin has value, same as any other currency that once upon a time was backed by gold or silver and now is just a common belief that it has value. On the other hand, the amount of bitcoin is scarcer, bitcoin is decentralized, it has great technology therefore we all believe those are the real value behind bitcoin, that is how bitcoin is backed up.
Overall if this is a cryptocurrency bubble can we compare it to the historic bubbles even though they are not the same. isn't it like we are comparing 2 totally different concepts as if we are comparing the same concepts?
Let me know what you think in the comments and help me understand if I made any wrong assumptions, thanks.
Don't forget to follow and Upvote I will follow back it will be much appreciated ; )
The difference between thoughts on bitcoin back in 2012 and thoughts on it now are completely different. Its safe to say that back then investing in bitcoin was a risky investment, while today many consider it the safest coin to invest into. I don't think were in a bubble simply because technology is becoming more of a part of everyday life and bitcoin has gained a lot of traction.
I agree with you also, i dont think we are in a bubble.
Yes technology plays a big role in our day-to-day life, and just the technology behind block-chain has made a lot traction to bitcoin
I agree with you that bitcoin is not in a bubble! The market has proven over the past few weeks that the market will correct itself during small "crashes". Bitcoin is the future and you can just tell by looking at the younger generations! They are all on their phones and the internet ALL THE TIME! Bitcoin and cryptocurrencies will be the money they use in the future because the internet is SO ENGRAINED in our lives already!
Interesting subject, it is hard to do a historical comparison and I don't think that we are in a bubble either.
To me is hard to do a historical comparison just because they are very different from each other, and those bubbles happened because of centralized manipulation .
same I don't think we are in a bubble.
Congratulations @alessio! You have completed some achievement on Steemit and have been rewarded with new badge(s) :
Click on any badge to view your own Board of Honnor on SteemitBoard.
For more information about SteemitBoard, click here
If you no longer want to receive notifications, reply to this comment with the word
STOPBy upvoting this notification, you can help all Steemit users. Learn how here!