Is the Crypto Bubble Bursting? -How Far Down Will it Go

News stories litter the internet about bitcoin, ethereum, the latest alt coin, etc. This billionaire says bitcoin is going to $100,000 while some other billionaire says its on the brink of collapse. So which is it?

The truth is that majority of people are holding cryptocurrency primarily for speculative value (they are not using it, but holding it because of the expectation that they will get rich). An example of this can be seen by the NEO coin. NEO is currently number 7 by market cap with over $4 billion. However, NEO is not actually the coin that is used on the NEO blockchain. Gas coin is the actual coin that powers the NEO blockchain and is worth only $200 million in market cap. That means that the actual coin that is intended to be used on the NEO blockchain is 1/20th the value of NEO!

A big correction is due. Not every person can get rich fast and the only intrinsic value of any cryptocurrency is the technology that underlies it. A definite amount of coins does not really give a cryptocurrency value because there are thousands of competing digital coins that do the same thing.

So, what is the future of blockchain? Easily repeatable coins such as bitcoin are not it... The network that is successful at using smart contracts, that is proof of stake, and attracts developers to create scalable applications is the winner. Bet with Gas coin, EOS, and the like. Not bitcoin.