The Bitcoin price has increased tenfold since the beginning of the year! Anyone who has invested 1000 euros five years ago is now a millionaire. What if the construct collapses? The dangers of the cryptocurrency.
But what could be the trigger for the bursting of the Bitcoin bubble? The US Securities and Exchange Commission may suddenly announce tough regulation of bitcoin trading, even considering a ban.
It would also be possible for major international banks such as Goldman Sachs, JPMorgan, HSBC, Deutsche Bank and BNP Paribas to join forces and announce a new digital currency that will be the standard of reference for all these major banks in the future.
Maybe, but not necessarily. For a bubble to burst, it does not always require a great, spectacular trigger. That was in 1999 before the bursting of the dotcom bubble. That was also the case in 2006, before the onset of the financial crisis, when US real estate prices suddenly began to fall.
As such, it's hard to speculate when the point will come when the Bitcoin bubble bursts and what could be a possible trigger for it. We just do not know.
All we know is that the bursting of the Bitcoin bubble does not necessarily mean the end of the promising blockchain technology. That is also what history tells us: The Internet has revolutionized the world - even after the dotcom bubble burst in 2000. For the time being, the digital currencies have little connection and interdependence with the real economy. The blockchain technology, on which Bitcoin like many other cryptocurrencies based, is likewise not affected thereby. This concept has the potential to revolutionize the efficiency of transactions and deliveries of goods. The Blockchain owes a lot to the Bitcoin, the soaring cryptocurrency made the underlying technology known.
Other crypto-currencies or altcoins like ethereum, litecoin, ripple, & dash are likely to replace bitcoin over the long term and actually be used for transactions and payments - not just for speculation. A relatively stable value is a condition for this. Bitcoin technology is already reaching its capacity limits in view of the massive demand. Bitcoin blockchain customizations that should speed up the application have led to the split off of Bitcoin and will cause further discrepancies in the Bitcoin community. The huge energy consumed in bitcoin mining is immense and continues to increase exponentially. On the other hand, there are cryptocurrencies that are not created by computational power but by transactions.
But for now, nothing seems to stop the Bitcoin. Neither hacker attacks nor emissions ban in China, and certainly not the warning of established bankers and economists. "They're just worried about their benefices," say the Bitcoin disciples - and, "This time, everything is different." But the latter is the most obvious indication of a bubble.
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