Is Bitcoin a bubble?
Ultimate opinion from Native Video Box CEO Alexander Shishow

Everyone who has ever heard of Bitcoin, at least once wondered if it’s a bubble and how fast it is going to burst. With the crypto market being a crazy roller coaster during the last week (and Winklewoss brothers losing a billion dollars in a couple of days), even professional investors start to wonder if it is. I’ll try to explain my own vision.

First of all, let’s have a brief look at Bitcoin’s supporters and opponents:

Starting from the most negative opinions, JPMorgan CEO Jamie Dimon believes that Bitcoin is a bubble and thus a bad investment. “It is worse than tulip bulbs.” (You must have heard of this comparison to the famous 17th century bubble). “Don’t ask me to short it. It could be at $20,000 before this happens, but it will eventually blow up.” Opinion of a person with such credibility can have a great impact on the market, so when Dimon said this in October, Bitcoin’s value fell 6%.

However, Bitcoin also seems to have a lot of acknowledged supporters, although we can’t but notice that they come not from traditional financial institutions, but new age technological companies. For example, David Marcus, CEO of Paypal says: “I really like Bitcoin. I own Bitcoins. It’s a store of value, a distributed ledger. It’s a great place to put assets.” Silicon Valley billionaire Peter Thiel agrees with him: “Bitcoin is like gold.”

So many men, so many minds. To try and find a middle ground between deeply negative and highly supportive opinions, I have decided to search for the answer from the most independent, unbiased judge there is: history. And the answer is that we have been there before.

If you’re not a millennial or studied at least the basics of economics, you must remember the notorious dot-com bubble: a period of excessive speculation in 2000, when Internet was being adapted by businesses and people. A vertiginous rise in equity markets was fueled by investments in internet companies, so called dot-coms. NASDAQ index grew exponentially from under 1,000 to more than 5,000 between 1995 and 2000. And when the leading tech companies places a huge sell orders on their stock, causing a selling panic among investors, a lot of Internet-based companies crashed, and so did the NASDAQ, back almost to its original number.

Do you see any similarities here?
Or should I say can’t you see the similarities?

So before you jump to conclusions about the doomed fate of Bitcoin (as well as altcoins and whole sector of ICOs and blockchain-based companies), let’s take a look further into the history. Taking a look at NASDAQ chart today, we see that it’s stronger than ever: at over 7,000 with great prognosis for growth in 2018! We can see that its value didn’t depend solely on the dot-coms “gold rush”.

And that’s what I believe is going to happen to everything blockchain-based.

Although it is exposed to a certain volatility that might influence its price in a negative way (what we see at this very moment), these new booming projects all together are not a bubble. They can’t burst and disappear to nothing.

So just look at NASDAQ historical charts to see what happened next… but please keep in mind that nowadays global digital world goes around much faster: it will not definitely take 15 years to go to and fro!

photo credit: con.com