Who will go bust through Bitcoin?

Jul 9, 2018

Have you noticed how controversial the information about all these cryptocurrencies is?

On the one hand, state representatives and financial institutions assure us that Bitcoin and any other cryptocurrency cannot replace real money because of the low speed of transactions, vulnerability to the intervention of swindlers and hackers and simply owing to a number of other technical features of blockchain.

It’s not that cryptocurrencies do not have material value. (I can argue with this, especially taking into account how much computing power and energy is required to mine one block of Bitcoin. Yes, computing capacity and energy can’t be felt, they are not so material, as, for example, gold, but nevertheless they have a certain value).

On the other hand, the thought leaders in social media now urge to wait and hold bitcoins in the hope that their price grows in the future.

Recently the popular cryptoenthusiast Salih Sarikaya asked on Twitter what should the people, who bought Bitcoin for 18 000 dollars in the winter, do now. Others have picked up this thread and urge to “hold Bitcoins until the price falls to zero or goes through the roof”.

Someone foretold even at the beginning of the year, that by the end of 2018 Bitcoin price would fly up to an incredible 60 000 dollars. Sounds promising.

Basically the owners of small amounts of Bitcoin will follow the advice of cryptoinfluencers and not begin to get rid of bitcoins for a while, hoping to hit the jackpot in the future. The more cautious will prefer to wait a little more, until the price reaches at least 10 or 12 thousand dollars, and then sell it. But the thing is that very few people will dare to buy bitcoins in the current situation.

Although, experts say that investing in cryptocurrencies now is like investing in gold, because sooner or later a cryptocurrency’s value will fly up, allowing to sell it at a profit. In a nutshell, it is an excellent investment asset.

But the problem is that bitcoins are bought not by those who have spare money to make a beneficial investment, but by those who are devoid of this kind of money or at least do not have so much of it. These are the very millennials who use Twitter and are not so interested in the technical aspect of blockchain. They are the ones who have a great chance to go bust.

If I were a cryptoinfluencer, I would say that, taking these concurrent opposite tendencies into account, Bitcoin price will shortly stop at an average mark of, say, 9000 dollars. At least for a couple of months. But I am not an influencer, so you shouldn’t trust my forecast. In my opinion, it is more reasonable for investors to pay attention to the blockchain technology itself and the companies which create useful and working products based on it (for example, FairWin, which is making a gambling platform on the Ethereum blockchain and original games with gorgeous graphics).

So why do we all get off on Bitcoin price? Because, no matter how sad it may sound, the fate of all cryptocurrencies and the crypto economy in general depends on it.