Is Bitcoin a Bubble?

Is Bitcoin a Bubble?

As a company, we are much more interested in Blockchain than any specific currency (Bitcoin, Ether or any of the others). However, there is an impressive lack of understanding in the mainstream media and I don’t think it benefits anyone to perpetuate that. Some sanity must prevail!

The noise about a Bitcoin Bubble has been deafening of late. I don’t believe Bitcoin is at its peak or in a bubble and we’re just getting started on the potential of blockchain. However, some of the mainstream media coverage is amazingly bubble-like: stunningly uninformed & poorly researched.

I saw a very misguided Forbes piece titled “A Bitcoin Is Worth $4,000-Why You Probably Should Not Own One”. I’m not going to link to it here. It doesn’t deserve the traffic.

The author makes a variety of absurd claims.

Bitcoin is not “like PayPal”. Bitcoin is not “managed by a bunch of users that track them”. This is not like the tulip bulb crash of the 1630’s because (unlike tulip bulbs) the production of Bitcoin is not unlimited.

Possibly the most egregious error is the author’s claim that “Someone could hack the blockchain” complete with a link to such a hack. Except the link is to an exchange that was hacked, not a blockchain. If you don’t understand (or are too lazy to research) how a vendor with a trading platform is different to the technical underpinnings of the digital currency you are writing about, you’re really not qualified to write the article in the first place. One of the biggest advantages of blockchain is that it is far harder to hack than any traditional system.

I expect better from Forbes. This is clickbait FUD at its finest.

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