Why Ethereum (& BTC) Is Not a Bubble
So, Okay. We’ve all heard the “other” point of view regarding cryptocurrencies & their future. While some people are ready to embrace the new technology and think how to best apply it in our everyday lives, large number of others feel like making the most absurd predictions about its decline.
It’s actually funny in a way: observing people acting as if the Prime Minister of Nonsense has personally gave them their blessing to spill the nonsense on forums & Youtube is an experience like no other. On the other hand, there’s an element of danger concealed within, because some can take them at face value and believe the words they say.
What words, you ask? Well, you’ve heard that: “BitCoin is a bubble / Ponzi scheme / fraud / nothing.”
Every words you say — if you intend to be taken seriously, of course — have to be backed by something. A proof, we call it. The main argument you hear from the anti-crypto crowd is “Cryptocurrency is not backed by anything.”
Do I think it’s true? Well no, I do not. Let’s break this down once and for all, using Ethereum as an example. In case of everything you want to call “a bubble / fraud / nothing” (let’s skip Ponzi schemes for now), this basically has to be that: NOTHING.
Now, to Ethereum. It is built on a custom, innovative, one-of-a-kind scalable & flexible blockchain technology. Some of the world’s best programmers have spent thousands of hours writing code to make sure the whole system runs smoothly & fault-free. Now, even if you’ve been raised by people wearing T-shirts “Idiot & Proud” since their early days, do you really have the guts to say this tremendous amount of work is worth…. nothing?
Neither do I. You don’t just take an innovative technology & put it in the same box as fraud schemes & knavery. Or no — you do, when your intention is to make false rhetoric arguments.
Up next… What makes people believe that fiat money are worth something? Generally, it’s the fact that these are issued by governments — Serious Institutions Worth Our Trust. Actually, while typing this, it’s hard not to chuckle: the amount of sheer lies spilled by world leaders exceeds James Joyce’ “Ulysses” by many times x thousand.
But okay, so be it: most countries are there to stay and not going to disappear like “random internet guys,” so there’s some trust involved. You just believe that your money are not going to fall in price & suddenly become worth nothing (which is also untrue, read on default).
In other words, it ultimately comes down to TRUST. This is what fiat money’s ultimately backed with; if all people in the world had conspired and decided that, say, Swedish Krone is worth nothing, all of a sudden its exchange rate would reach some whooping $0.00. And, if you’ve read these horror stories about BitCoin to fall down to the same figure sometime, ask yourself a question:
Will people who believe that BTC & Cryptocoins are the future, suddenly, all at one day, conspire & stop believing in BitCoin?
What are the chances all these people will come to consensus BitCoin ain’t worth a cent? All of the programmers and technology fans who spread the word about it, who are excited about the new prospects crypto gives us, and want to change the way money is working?
You need not to be a prophet or analyst to answer: 0.00%. Even if the whole world is against BitCoin: China, Africa, whoever… there still will be people, call them geeks, IT crowd, or what have you — who wll stay convinced BitCoin is worth something to them. As such, there‘s just no chance BTC or ETH will blow and drop to zero. Fans and believers won’t let that happen.
To sum it up:
- BitCoin and Ethereum are backed by advanced & superior technology.
- There is a percentage of people who trust & believe this technology has the future. Some of the most respectable world’s companies use it to develop custom apps & streamline working process.
- The amount of human work put into that technology is worth millions of dollars. It is a stable system that works and has proven its reliability.
Now that we made this list, I can’t possibly think of a single fraud or Ponzi scheme, where the same three points would still be relevant.
If you stil think Bitcoin’s a bubble, please…
Go back to your cave. See you.
