It is this robust growth that is the key argument of those who say that behind Bitcoin is the common mass psychology of market mania,
ie ordinary greed which by a similar socio-psychological mechanism created the famous Dutch tulip mania in the 17th century, when more and more naive people bought because of rising prices. Tulip bulbs lasted until February 1637, when this concept collapsed, just like a series of later market mania. It would be unfair to Bitcoin to easily conclude that it is a modern tulip mania,
although that is exactly what some big names in economics and business have claimed.
Nobel laureate Stiglitz proposed a ban on Bitcoin because it does not fulfil any social function,
and the CEO of JPMorgan Chase, Jamie Dimon, said that people who buy it will pay the price for their stupidity.
Interestingly, the fiercest criticism of Bitcoin comes from very different intellectual and moral habitus.
Many fans of innovations will say that it is not the fate of Bitcoin that matters, but the future of cryptocurrencies based on "revolutionary" blockchain technology. One should be careful about this thesis as well: it would be said that
blockchain technology is still the subject of controversy over whether it will prove its "revolutionary" and practicality,
ie its wide applicability. Until we see it on a truly massive scale, let’s maintain a healthy level of scepticism. In defence of Bitcoin from the thesis that it is the most common bubble inflated by greedy naive people and that it is a matter of time,
when it will burst, it should be emphasized that the question of time when something will burst is actually an essential question.
Will the growth last another five years and reach a value of $ 100,000? Maybe. What do you care about a bladder if you’ve sold it in 4 and a half years? And maybe everything will break tomorrow. Or in 20 years. Bitcoin is perhaps the daddy of all bubbles, a balloon that can be inflated to unprecedented proportions.
The current total market capitalization of cryptocurrencies is about $ 300 billion. Half of it is Bitcoin.
What is this in relation to the total world wealth of 241 trillion dollars? Well, you could say about one-eighth of the world's wealth.
We see no obstacle to why cryptocurrencies would not, say, increase tenfold from that level, no matter how strange it may sound.
It should not be forgotten that the future of Bitcoin is partly fueled by growing distrust in official fiscal and monetary policies,
and there is no indication that policymakers are willing to offer some new, different and more convincing models.
Turning what we call real money into some virtual value is not psychologically easy.
That is why bitcoin became globally popular only in 2017, that is, eight years since it was introduced.
Buying bitcoin is different compared to all the financial purchases you have made so far. For example, compare it to buying a fiat
currency. If you want to buy euros you have to go to the exchange office. There are armoured glass. You do all the work through a small window. The price of the euro is displayed on a screen on the wall, and behind all that insurance, which is accompanied by video surveillance, there is a person with whom you are arranging the purchase. It is similar if you want to buy euros via internet
or mobile banking. To get into it at all, you need to have a computer or cell phone that uses the latest software backed by the latest security systems. You also need to have access data and further, you just need to click and confirm the purchase of euros. Buying bitcoin, which today is rumoured to become digital gold, is different from buying all other assets.
As a rule, you need a broker to buy shares. You have to register at a brokerage house, order transactions.
You have support and protection. Brokers and exchange offices cannot operate without licenses. The issuance of fiat money,
including euros, is controlled by central banks such as the CNB and the ECB. In order not to deceive customers,
and not to deceive them, money transactions are especially closely monitored by the Tax Administration,
the Office for the Prevention of Money Laundering, and in order not to deceive investors, there is Hanfa and the
Central Depository and Clearing Company. Stock trading is done through stock exchanges such as the Zagreb Stock Exchange, etc.
Because of all this, every stolen banknote and share can be traced. Banks must keep records of just about every transaction made through them. The same is true with other financial institutions. That is why you are theoretically well protected because your protection is guaranteed by state institutions. In the world of bitcoin, this protection is guaranteed by the bitcoin network itself.
At CoinMarketCap.com, you will find that there are cryptocurrencies that grow up to 50 per cent or more on a daily basis.
Some have high traffic, some do not. Some are traded more expensively in Japan and Korea, and some in the US and Europe.
This already requires that you have a lot of knowledge not only about cryptocurrencies but also about international finance.
That is why, in addition to bitcoin, most people are currently watching only two other cryptocurrencies: Ethereum, ie Ether (ETH)
and Litecoin (LTC). There will be even more cryptocurrency in the future. But, as with all investments,
think twice before embarking on them and be aware that the risk is borne solely by you.
