Bitcoin is a crypto currency and a digital form of payment. It was invented by an unknown group of programmers called Satoshi Nakamoto. Bitcoin is known as the first decentralized digital currency that doesn’t require an intermediary and it accepted across all mediums.
Currently it is valued at $2600 per Bitcoin compared to it’s price of $15 back in 2011.
The following are a few points as to why Bitcoin should not be considered a bubble that could burst any minute as told by OfTwoMinds.com financial blogger Charles Hugh Smith in a post.
1) It’s a legit opportunity and not a scam.
With Bitcoin, what you see is what you’ll get. Like all crypto currencies , the rules of Bitcoin are pretty transparent. Meaning that both the buyer and seller are aware of everything about the exchange.
2) Everyone has not yet started buying Bitcoin
He says that the amount of potential buyers is way larger than the amount of current owners.
“Bubbles occur when everyone and their sister is trading/buying into a ‘hot’ market,” the blogger says. “While a few of my global correspondents own/use the primary cryptocurrencies, and a few speculate in the pool of hundreds of lesser cryptocurrencies, I know of only one friend/relative/colleague/neighbor who owns cryptocurrency.”
Which means that large institutional investors could start adding Bitcoin as their holding assets.
3) It serves an actual purpose.
Cryptocurrencies have utility value, meaning that they facilitate international payments for goods and services. How is that different from all old concepts of paying online like credit cards, Paypal, Payoneer when they’re already facilitating transactions internationally?
It’s different because bitccoin serves a way to carry out transactions as one currency that provides a bridge between other currencies. It’ll serve as a new currency overall that is accepted world wide.
You can read Smith’s entire post here.