Many big-name figures in the financial industry have been publically criticizing Bitcoin lately, reporting it as a “bubble.” JPMorgan’s CEO Jamie Morgan is the most noted critic of the original digital currency.
Yet, because of its transparent and its mathematical and decentralized character, calling it a bubble of any kind is highly inaccurate.
Back in 2013, there was a Bitcoin bubble per se, when the demand for Bitcoin rose to a point where it could no longer be fully supported by the market and dropped from $1,300 to $200. Calling it a “bubble”, however, is still an inaccurate description, just like it’s inaccurate to describe Tesla and Amazon in the same way.
Up until the end of this Spring, analysts continued to describe Tesla’s value increase as a bubble, as they did Amazon throughout its 20 years of business. The transportation editor of Business Insider a few months ago made a statement about Tesla saying, “At this point, a Tesla bubble looks obvious and it looks as obvious as it has since early this year. The difference now is that it’s grown so large that it’s become terrifying.”
Any emerging company, startup, or technology that has an accelerated increase in their value or growth is now being seen by experts, as “bubbles.”
With many major corrections from 2013 to 2017, Tesla’s price has increased from around $20 to $302. Since its beginning, Tesla has recovered from several setbacks and developed a stable sustainable business and, more importantly, a consumer base extremely similar to how Bitcoin evolved into a viable financial network and captured active user bases of tens of millions of people.
Furthermore, Bitcoin has significantly matured since its launch in 2009.
Apple’s co-founder and Billionaire Steve Wozniak recently described Bitcoin as more legitimate and transparent than “most systems in existence today.” In his interview with Money 2020 he stated:
”There is a certain finite amount of Bitcoin that can ever exist. Gold gets mined and mined and mined. Maybe there’s a finite amount of gold in the world, but Bitcoin is even more mathematical and regulated and nobody can change mathematics.”
Featured Image: twitter