Cryptocurrencies: Bubble or Misunderstood?

I realized something as I was going though news reports online in the last few weeks. It's been the ending of 2017 and the beginning if a new year and the news portals are in a race to predict what will happen to cryptocurrencies.

What struck me was the word bubble in almost all the articles. Those that did not say bubble said something else like scam or some other deprecatory word to refer to cryptos.

One of the reasons behind this could be reckless statements by those who are senior in the corporate world. For example here's what Jamie Dimon said.

"It's just not a real thing, eventually it will be closed"

"I'm not saying 'go short bitcoin and sell $100,000 of bitcoin before it goes down," he said. "This is not advice of what to do. My daughter bought bitcoin, it went up and now she thinks she's a genius."

"It's worse than tulip bulbs. It won't end well. Someone is going to get killed,"

"Currencies have legal support. It will blow up."

The other reason could be the huge number of new coins releasing all the time some of which do not even have proper details about their offering and how they are going to go about achieving their purpose. There is also a certain degree of anonymity that cryptocurrencies offer that is looked down upon as being shady and open to suspicion for those who engage with it.

Volatility is another factor that goes against any cryptocurrency. The common behavior that has been observed is that most investors keep holding on to their coins in the hope that it will increase in value even further. Not many actually spend their profits that they earn out of the high rise in value of their currency. Such high volatility while being very exciting for investors is not looked upon too well by outsiders and conservatives.

These factors have been highlighted in posts across the news media and have influenced those who are not fully aware of the benefits of cryptocurrency.

The fact is that it offers a level of decentralization that has not been seen ever before. It no fees and and can be sent to recipients within seconds as compared to banking transactions that can take days.

While it offers anonymity the truth is that the blockchain stores all transactions something that is not prevalent in the fiat world.

The gap lies in awareness and most people are simply not aware of how cryptocurrency works. If they are educated about how they can use it and how it can benefit them I am sure that there will be a bug change in how the world views cryptocurrency.

No other form of currency will give so much control to individuals while also offering a high speed of transactions and lower cost of transactions. It has the potential to change the economic system all over the world.

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