Basically, cryptocurrency is a digital asset that represents a mode of exchange. Usually, cryptocurrencies use stable cryptography to facilitate financial transactions, transfer of assets and creation of extra assets. Cryptocurrency has been described as a reliable alternative, digital and virtual currency. Recently, several economic experts have predicted the collapse of cryptocurrency. These worrying predictions have seen cryptocurrency appear to be a mere bubble?
Is Cryptocurrency really on the brink of Collapse?
In 2017, Bitcoin witnessed a significant upsurge from $800 to $2,605. Besides, other cryptocurrencies followed suit with notable surges. Such an occurrence will definitely rule out the allegations of cryptocurrency’s instability. However, different experts have their view on this.
Experts view on Cryptocurrency
Experts have always had different views concerning cryptocurrency. Some specifically hang on the feeling that cryptocurrency is not here to stay. Others gravely defend cryptocurrency as a universal currency which is bound to get better. So, this has left a lot of people at crossroads, even worse to those who are green about virtual currencies.
In 2014, Warren Buffet, an American investor did hazard a warning. He advised investors against Bitcoin terming it as a mirage, bound to disappear on moving closer. Come 2018, he still maintained his stand on cryptocurrency not being a viable investment. In fact, he referred to bitcoin as rat poison. This squarely confirms that cryptocurrency is a non-productive asset.
So, what is really happening?
Some market onlookers are accurate in perceiving the cryptocurrencies’ bubble-like nature. For instance, most cryptocurrencies have not received any backing from any Central back., furthermore, the so-called global currencies lack a market regulator. Reason being, cryptocurrency value is absolutely notional. Since some coins are still in their initial experimental state and cannot justify their present market price. Such revelations from critics, clearly confirm cryptocurrency is a bubble. Therefore, a quick correction needs to be brought on board. Unfortunately, such a correction is not forthcoming.
Is this a considerable light at the end of the long dark tunnel?
Cryptocurrencies have begun making significant progress to becoming mainstream. The masterminds between these digital currencies are working smart to make them acceptable. In the same faith, most countries are studying to study these currencies. The relevant authorities are looking for ways to regulate cryptocurrencies. Some countries have gone even a notch higher. These countries, for instance, India are allowing people to trade cryptocurrencies for Cash. Besides, several platforms, like ZebPay are permitting payment of installments using Bitcoins. Such happenings are bringing particular cryptocurrencies closer to mass acceptance. When that desired feat is achieved, then more people will have faith blockchain and cryptocurrency technology.
When cryptocurrency was introduced it appeared to be a viable business. Investors could not help but predict future profits. However, over the years cryptocurrency has come under some heavy criticism concerning its stability. Some of the allegations appear to be true and that raises eyebrows. Hence, it is better for any potential investor to be extra vigilant before investing. Proper consultations need to be put into consideration before trying some luck in blockchain investment.