One of the hottest topics of the last couple of years has been the mainstream emergence of Bitcoin and the significant rise and fall that has happened. It is still hanging on to life, however, and there is more speculation than ever on what its future holds. According to John Wasik at Forbes, the bitcoin bubble will burst because of three main reasons:
Bitcoin is not the only coin of its type, even though it is the main one with name recognition at the moment. There are over 1,400 cryptocurrencies, and they all have a shot, all getting in position for a run. There has to be an analysis done on its technology, hype and marketing to see who exactly comes out on top. The iPhone was not the first cell phone of its kind out, but it eventually took over the market anyway. The same thing may happen with Bitcoin, especially when powerful outside entities like banks, companies, and even countries get involved.
Bitcoin may have the recognizable name, but that doesn’t mean it is the best or most promising technology. As other cryptos gain market share, others could study the market and choose the winners among them. Remember that Bitcoin has already hit its peak according to many and that many people are looking at other coins to make their investments. With newer technology coming out and more involved players making their plays, there’s still a long way to go to determine who comes out on top.
Performance not in the way of how much the coin costs, but as far as speed and efficiency. Bitcoin isn’t exactly the fastest performing coin, just the most known one. As many people focus on the value Bitcoin provides to people who have it, the industry at large has shifted to whether any other coin can outperform it and be of better use.
The irony of all of these cryptocurrency stories is that it so closely resembles everything else. There will be winners, there will be losers, and a lot of research will have to be done so that the best investments can be made. What makes this so attractive? Unlike stocks, these cryptos may rise to ridiculous percentages in a short amount of time, so it will always be appealing to a wide audience. Who doesn’t want to get rich quick?