Bitcoin is a Market Bubble and It is Not a Good Investment, Says Critics in a Book
Many people still do not believe in cryptocurrencies, especially Bitcoin as some call it a bubble. This is exactly the belief of the authors of a book in recent times, where they noted that Bitcoin is a typical case of a market bubble whose value will decline remarkably, without regard to the fluctuations at the moment.
The authors carried out a technical analysis, with a focus on price fluctuation, trading volume together with available signals and concluded that Bitcoin will continue to decline as the negative trends progress. Likewise, they noted that the price fluctuations add up to a market bubble and Bitcoin cannot be considered a good investment.
Bitcoin boomed unprecedentedly in 2017 but there was a huge crash of cryptocurrencies in 2018. The 2017 market manipulation coupled with the inexperience of the market participants at the time produced a massive crash in 2018.
Since 2018, the cryptocurrency industry has continued to evolve such that Bitcoin is still the largest and the number one coin in the space. The massive growth is such that it has received institutional support and the space welcomed big institutional players like CME and ICE.
According to Ben Davies of Glint, Bitcoin is not a bubble but other digital currencies are “flooding the market with perishable supplies of worthless value.”
“Bitcoin is not a bubble, albeit it has all the hallmarks and antecedents that are the precursor to a bubble. The term bubble tends to indicate a price no reasonable future outcome can justify. In price terms, Bitcoin and altcoins (alternative cryptocurrencies) are in a bubble. In value terms, Bitcoin is not.”
It is noteworthy that because Bitcoin is not a firm, there is nothing like loss of profits and eventual failure. Interestingly, Bitcoin is now behaving like an investment hedge or non-correlated asset against traditional market uncertainties.
Its decentralization feature is the most crucial, meaning that there is no central authority deciding its evolution. Even reports had it that more organizations are now accepting cryptocurrency donations, thereby increasing the traction of cryptocurrencies.