As strong supporters of cryptocurrencies and blockchain overall, we are glad to hear this. And as it always happens with each record broken by Bitcoin, there are a few old questions that have to be addressed again.
Is the bubble one step closer to bursting?
Many naysayers are already predicting a future massive downfall. Bitcoin cannot possibly grow so much for so long, something has to stop it eventually. The security question comes back into the discussion, and one may ask himself – whether this time some of those doomsday predictions may come true.
Worries regarding security and anonymity of the cryptocurrencies were here since the very dawn of the market. However, since 2013, Bitcoin has already proven to be an incredibly lucrative and safe form of investment. Even now in 2017, when we have seen a few price drops, Bitcoin market quickly recovered and continues its explosive growth.
Less popular cryptocurrencies are also benefiting from the Bitcoin craze. Ethereum’s price, for example, has jumped up by over 10% just a day prior to the Bitcoin’s record. Partially the huge investment flood comes from the crypto-backed startup world, which provides almost unregulated opportunities for investors. Billions of dollars were dumped into cryptocurrencies since the beginning of 2017, and according to the Chicago Tribune, even some famous US politicians are amongst Bitcoin boosters.
On the other hand, it’s also true that adoption of cryptocurrency by retailers and other businesses stays fairly limited. This, of course, begs the question: how much of the growth in value Bitcoin owes to greedy investors and speculations? And, no doubt, there are many shady companies and scams on the crypto market. However, all of the major Bitcoin scandals were so far connected either with the crashes of exchangers or personal negligence of account managers.
Bitcoin blockchain, in of itself, has never been hacked, unlike banks and private trusts. Cryptocurrencies are the future of the world financial system. The only question is, how long Bitcoin will stay the king of the mountain?