Currently, every day another pundit from the financial world is making a remark about whether Bitcoin is in a bubble or not. Astonishing that this is still a debatable question.
Of course Bitcoin is in a bubble. What other reasonable (yes, reasonable, not just mambo jambo) explanation is there for the crazy explosion in the Bitcoin price? People should be honest with themselves: Bitcoin’s price keeps increasing because people expect the price to increase and would love a piece of the profit. It’s all speculation.
Sure, there might be the occasional individual in a country with a non-functioning financial system, who uses Bitcoin for non-speculative transactional purposes. But realistically, other cryptocurrencies are more suited for that, due to lower transaction fees and faster processing times.
Right now, Bitcoin is pure speculation, and it’s a bubble. Period.
With that being settled, the more important questions, in my eyes, are: Continue Reading