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For those who read only the title will think that I am a skeptical critic and that I do not see a future for this technology, but that would be completely wrong, as I am a big enthusiast of decentralized and central bank independent currencies, and these currencies bring new technologies and revolutionize the economy.
The reader must ask why then does the writer of this article believe that cryptocurrencies are a bubble factory? The answer is simple, not all coins are bubbles. The cryptocurrency market is on the rise, like any other bull market, attracts people who want to make quick money and assets that are worthless start to be traded as if they were something unique and innovative, when in fact it is the other way around.
In the late 1990s and early 2000s, the famous dot-com bubble was at its peak, tech companies being traded at inexplicable multiples and yet more and more people “investing” all the money they had, because for them it seemed impossible for stocks to stop rising, emotion-based analytics could be found everywhere encouraging more people to buy.
A big difference happens when it comes to the crypto bubble, this is the ease of creating new currencies (usually, copy the code of another currency and simply change the name). Coins are created all the time, the creator retaining all or a large part of the newly born crypto, announces in forums, telegram groups and wherever else he can, he has a new currency that promises to multiply the amount invested by 10, 20, 50, 100 times . Some people start buying and the price goes up. But everything has a limit and these coins have their tragic end, loss of 80%, 90% or even 99% of their value. This loss of value is usually caused by the creator selling a large amount or all of his coins, the market is flooded with this worthless shitcoin and he keeps the money of those who believed his lies.
So beware of new coins, especially if it’s a meme coin or one that claims to be innovative and promising, but is just another fish in the ocean.
