Bitcoins and other cryptocurrencies had a monstrous growth over the past few years. The money value of these crypto currencies is as big as Royal Bank of Scotland and Goldman Sach Groups combined. The price of a single Bitcoin reached an all-time high of 4,683 USD on August 31, 2017. But now some investors and economists fear a huge crypto-bubble is about to burst.
It has been over a year of exceptional growth for the broadly uncontrolled market, in which dozens of new cryptocurrencies appear every month in “Initial Coin Offering” (ICO). These currencies attain value almost instantly, attracting those who are anxious to get in and make some quick money.
According to a report from an industry data firm, CoinMarketCap, at the beginning of 2017, the total market value of all cryptocurrencies was about 17.5 billion USD, Bitcoins making up almost 90% of the total value. The market cap is now around 120 billion USD and with only 46% made up by bitcoins.
Bitcoin cash, a twin of Bitcoin which was split off from the original bitcoins by a conflicting group of developers, reached a value of 12 billion USD in less than 24 hours after its start.
Cryptography is used to make and keep secured transactions. This allows anonymous end-to-end transactions without the need of banks. They utilize the blockchain technology, a system that keeps transaction records, and makes sure that the cryptocurrency cannot be copied and spent more than once.
Howard Marks, a Billionaire US investor relates the cryptocurrency market to the dot-com bubble of the century. But Cryptocurrency advocates argue that 2017 is just a start of the Bull Run. They state the finite feature of these currency units, the limit of bitcoins will never exceed 21 billion. For example, the base of the technological innovations will ensure lasting value.
The opinion of the consumers
The public opinion on cryptocurrencies has always been distinct. But, with the new rush in the market, the opinions have become more contradictory. Bitcoin critics’ view on bitcoins is based on that Bitcoin’s first impression as a black-market currency and predicted this as a bubble. While advocates propose that this is a global currency that is intended to be primary without being centralized.
The critics and experts say the equated nature of these currencies intends the weakness of the new entries and could bring the whole market down, while some experts argue market forces will ensure the best consumers will survive and conquer. Know More