On one snowy evening of 22nd December 2017; the crypto bubble violently deflated. The massive bitcoin worth $20,000 came crashing down to a $10,500, all in one night. The night was catastrophic and threw many users off the hook.
But soon after, the market seemed to recover. Coming close to its all-time high. Since then it has turned into a vicious cycle of uncertainty. Whether this was the worst or more is yet to come, it’s worth knowing why it all happened in the first place? How did it go from $20,000 to a mere $6,000?
Can it all simply be blamed on the known “Bitcoin Bubble” or has it got something more to it?
You would know what a turn of events your life would have taken on that day. You either would have watched your life flip over to the heaven or the hell; all on a screen.
So will the bubble pop or will it envelop us all?
What fate will bitcoin meet? Maybe after this decadeBitcoin will cease to exist or will boom like never before, dominating most of our lives? We can’t be sure but a lot of energy, intellectual and economic is behind it so we’re hoping something good comes out of it.
Internet and cryptocurrency are frequently compared, while internet shaped our society for the good and bad. Will cryptocurrency fill in the same shoes?
It’s possible that the answer is currently being built. The blockchain is not just an alternate system but a community as well. It’s a government in itself as its a combination of money and community.
People are not much concerned if it will happen or not but they want to know the consequences. What will happen next if the bitcoin bubble bursts?
According to some, the harm wouldn’t be much. Most of the cryptocurrency holdings belong to the early adopters, to Silicon Valley hot-shots and miners running cryptocurrency mining operations. The extremely wealthy people would simply become less wealthy and not much damage would be caused.
However, a sudden collapse can put a strain on the exchange market. People would rush to cash their bitcoin for fiat currency and this sudden stampede could put massive pressure on the exchanges. Bitcoin companies, exchanges, wallet companies, etc., will all go out of business.
However, some believe that a 2008 style crash is a little over the top and the possibility of that happening is low. The systemic crisis was fuelled by debt and for something like to happen again would mean that a lot lending and credit have to build up and bitcoin, for now, hasn’t reached that point.
No matter how bad it seems, one thing is sure to come out of it: regulation. The government will sure adopt an interventionist stance. And, that, is already happening as we speak; it started out in South Korea where hey called for a conference regarding Bitcoin and later France’s finance minister demanded a stricter regulation over Bitcoin.
Bitcoin might be replaced by some mightier cryptocurrency or it might be limited to libertarians, crypto-enthusiasts, nerd and internet geeks, and darknet spelunkers. Or it might end up in digital purgatory.
But it will not die. Not just yet.