DIGITAL CURRENCY MARKET IS A BUBBLE, IS IT?
Digital currency or Crypto-currency is not a new concept now, digital currencies use blockchain technology. It uses encryption techniques to regulate its use and generate its release (for transactions). Unlike other forms of currency, crypto-currency is not regulated by any kind of bank or any centralized authority. Instead it uses the internet to confirm the transactions. Every transaction is verified by the users on the network and then it becomes a public record. Individuals and organizations sell processing power to network for fast processing of transactions. This prevents the same currency from being spent or used twice by the same person. Bitcoin is the most popular, and first crypto-currency launched in 2009. Others include Ethereum, Dash, Iota etc.
Distributed, decentralized systems have an inherent power that literally obsoletes centralized systems. This is obvious even to the most casual observer. We have known this for decades. It was not until the arrival of the blockchain, however, that we had a tool capable of melding “decentralized” and “distributed” into a single unit within which no central authority whatsoever was necessary. The distributed ledger, maintained by no-one, accessible to all and validated by consensus is the tool the world has been waiting for.
Those who understand this tool see immediately the absurdity of words like “bubble,” “investment,” etc. when applied to crypto-currencies. These thought leaders use bitcoin to buy and sell and those who use bitcoin exclusively as a currency and use no other currency — and I personally know dozens who do so — could care less about what bitcoin is worth in dollars.
These people see, and have seen for some time, that the old paradigm constructs are meaningless in this new world.
It is like the first pueblo cultures being warned by their past sages that they will perish in their stone houses when it is time for the village to move. They understood that the concept of “moving” had no meaning in their new world.
Likewise, what people see as a bitcoin “bubble,” from the perspective of the new paradigm, is merely the predictable and systematic devaluation of fiat currencies that will continue, with obvious ups and downs, until all fiat currencies reach the zero point.
As the relative value of bitcoin temporarily drops, they will point to this as proof if their understanding. It won’t matter. The reality if this new world is what it is. Those who understand will be the leaders of this new world.