Is Bitcoin Just An Emotional Hype?
Hey My Dear Steemian Friends,
Robert Shiller, a Noble Prize -winning economist, says bitcoin may be extinct in 100 years from now, because it looks like a bubble. There have been many hard forks changing it.
But, Shiller believes that one scenario could see the top currency by market cap experience a huge price spike before fading out. Back in 2013, when bitcoin topped $1,000 and then lost 80% of its value; it appeared that bitcoin was fading away.
A Fad Fueled by Hype
In April of 2018, Shiller called bitcoin mania a passing fancy that's fueled by emotions and hype. Furthermore, he believes the hype surrounding the decentralized unregulated virtual currency market stems partly from its defiant image as rebelling against "The System".
There's a big element of people who don't trust the government anymore, and they like the idea that this didn't come from the government. I sure like the idea myself. It's so hard to have faith in our politicians, since most (if not all of them) lie to get voted into office. We have to depend on media to give us accurate news regarding our government's day to day operations. It seems that the Democrats are always hating on the Republicans and vise versa.
In any case, the government foolishly and recklessly mis-manages tax payers funds. It's been going on for decades. But the reckless spending appears to be more pronounced in the 21st century.
Enough of that! Back to Bitcoin.
Even though Shriller is pessimistic toward bitcoins and predicts the eventual demise of crypto, there are numerous bitcoin bulls who are confident about its future.
Like Tim Draper who purchased 30,000 bitcoins for $600 apiece back in 2014, when few people have heard of it. At today's prices of roughly 7,500 a coin, Draper's stash is now worth about 225 million. Yes, Draper is a true believer and predicts the target price of one bitcoin to rise to $250,000 by 2022...that's four years from now. WOW!
Then there's Twitter Jack Dorsey billionaire who believes in the future of crypto. Do I believe in the future of Steem? Yes, I do, because I can see the value of this wonderful social platform.
The world has become smaller and more connected because of the Internet and technological advances in my opinion. Digital currency is well justified. Therefore, cryptos like Steem will likely rise to popularity in a short period of time.
So, I'm more inclined to believe in cryptos and bitcoins based on true stories of successful investors. I do believe that there will be lots of scams and dishonestly tactics associated with theft of cryptos. To avoid a personal loss, we will all need to be educated about security and crypto management.
I would love to hear your perspective regarding bitcoins and other cryptos. Do you believe in its future? If so, why or why not?
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Thanks for reading.