Before the birth of cryptocurrencies, we’ve always relied on centralization and traditional fiat. However, several issues have been recorded with these duos, ranging from inflation to distrust and mismanagement. These have led to several economic bubbles that have left a loophole in the financial sector of the global economy. It’s important to note that these bubbles work on a cause-and-effect phenomenon. There are many factors and concepts adopted by the central bank that need to be reviewed to fully get rid of these economic bubbles. Now, the main question is, Will Cryptocurrency get rid of these bubbles?”
Sometimes in 2019, the total stock market cap in the United States surpassed $30 trillion. Just after this, it lost more than a trillion dollars in one month. During this modern era, Apple was the first company to worth more than a trillion dollars by market cap. And during this time as well, in 2019, the United States national debt peaked at about $21 trillion and projected a deficit of about $1 trillion the following year. With these huge numbers and debt, there needed to be a lasting solution, and just then, the focus shifted to the cryptocurrency community. Before then, there has been news of regulation while others move for the prohibition. Nonetheless, it became clear that cryptocurrency has come to stay after the growth Bitcoin and others have enjoyed in the space of 3 years.
Undoubtedly, the crypto community is one of the fastest-growing communities with promising assets worldwide. However, the influence of the cryptocurrency community made investors and policymakers juxtapose it with the 2000 dot-com bubble as the biggest bubble of all time. There are several reasons why cryptocurrencies could be the next biggest bubble in the history of economic bubbles. Nonetheless, there are several investments you can make to keep income flowing in, and one of them is to buy Vechain. More than other markets like the gold market, the crypto community is more promising but do this means more bubbles to come?
Is the crypto community a bubble ready to burst?
An assumption will continually stay an assumption until someone is willing to take the risk. One of the bitter truths about perceiving cryptocurrency as the next bubble is because most policymakers still find the community “too good to be true.” Recall that bitcoin being the largest cryptocurrency by market cap has grown more than 600% currently than its price a year ago, moving from about $12,000 to about $55,000. With this performance, bitcoin became the best performing asset for the year 2020. However, most investors and policymakers still find it difficult to trust the crypto community; instead, they tag it as a bubble ready to burst. The price fluctuation of bitcoin is also one factor contributing to these assumptions of the cryptocurrency being the next economic bubble. Recall that bitcoin encompasses about half of the entire cryptocurrency by market cap, and its dominance is somewhat negligible. So, whatever happens to the bitcoin blockchain is bound to be replicated on all other altcoins and cryptos. However, some investors are worthy of recognition, such as the CEO of the United States banking mogul, JP Morgan, that turned crypto bullish. There are also several other crypto enthusiast and hedge fund managers that believe strongly in the crypto community and the fact that the digital currency niche is more promising than the gold market.
Some individuals, however, believe bitcoin and the entire crypto community are an advanced form of Ponzi scheme. In all sincerity, it’s normal to think in this manner. Still, with the extent of fairness and transparency in the crypto community, there are no attributions or affiliation of the crypto community with Ponzi schemes. Hence, cryptocurrency is not the next major economic bubble. Does it have any reason why it could be regarded as the next community to burst its bubbles? Yes, it does, and that is in the aspect of price fluctuation. The crypto community is such that it is highly volatile, but when you invest right in cryptocurrencies like Vechain and other altcoins, then you’ve got nothing to be afraid of. You can buy Vechain and hold for the long term and choose to buy bitcoin and trade it in the short term for turnover. The cryptocurrency community is an opportunity that needs to be seized to fix the loopholes left by recent economic bubbles. The power to make amends and plans for a bigger and more profitable economy lies in digital currencies and sits on blockchain technology.