This was the same assumption with dot-com companies. In late 90’s and early 2000, Dot Com companies were thought to be just an ephemeral bubble. To a larger degree, that assumption turned out to be true in early days.
The internet penetration level was not sufficient enough to keep the Dot Com companies afloat. Only a few like Google could survive. We have witnessed a lot of such companies vamoose into thin air of oblivion. The rationale behind this could be a socio-cultural ecosystem. The people were not accustomed to the internet. They preferred buying product and services from brick and mortar outlet.
Later with the advent of social media and e-commerce platform, the Dot Com companies started to find traction with people.
This is true for nearly all new changes. All changes are resisted in the initial stages. However, if the change has the potential to empower people which are generally realized later, the change starts being assimilated
Today is a situation where Dot Com companies are doing humongous business. People have become so much net savvy that they are willing to buy everything that is available online
Same is the case with Cryptocurrency. Nonetheless, trillions of money have already been pumped into the virtual currency. Willy Nilly we have to start appreciating the massive potential of Bitcoin. It has created hordes of millionaires and billionaires in the shortest possible time frame.
It has given an all-time high return that beat all the asset class across the board. Countries feel threatened because they think the cryptocurrency will wipe out the value of their native fiat currency
If facts are to be considered than cryptocurrency is only a decentralized form of alternative currency. A lot of apprehensions can be attributed around cryptocurrency because of the fact that its inventor Satoshi Nakamoto chose to keep his identity hidden creating skepticism
Since the inception of Bitcoin, a colossal return has been offered by Bitcoin. The other asset class is being threatened by it. Money is being redirected to bitcoin rather than conventional asset class.
However given the interest demonstrated by both retail and institutional investor in cryptocurrency, it is only naïve to believe that Bitcoin could be a bubble. The inclination to invest in Bitcoin is only increasing incrementally. Moreover, even the Asian countries and rest of the world has already bought the Bitcoin growth story.
Bitcoin phenomenon is here to stay and even thrive and throb. It would be facile and obtuse to believe that Bitcoin is a bubble that is going to burst someday.
Fortunately, that one day is never going to come given the interest displayed by the investor, Its high time when the naysayers should start realizing the enormous potential of Bitcoin
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