Crypto and Blockchain Is a Bubble – But Not the Bubble Experts Think
The bubble is about to burst, but not in the way experts predict. The technology is too strong to die.
Experts like Peter Schiff, Mark Cuban and Howard Marks have all called Bitcoin and Cryptocurrency a bubble. Each have made claims and on why and how they believe it is nothing more than a fad – some experts have likened the cryptocurrency craze to the Tulip Mania of 1637. They are right. We are in a bubble, but when the bubble does burst the death of crypto and blockchain will not be the result – instead the result will be accelerated growth and global acceptance.
The bubble crypto and blockchain is stuck in is actually holding global acceptance back. Government regulators are fighting hard to control that which cannot be controlled and losing. Hidden by the recent PBOC ruling on the ICO ban was the encouragement from the PBOC for China to continue with the study and development of blockchain and cryptocurrency. There is a reason JP Morgan Chase, Bank of America, SBI, ING and so many other financial firms are now starting to research and develop blockchain applications. The US Federal Reserve and Bank of America each have filed numerous patents in the US on potential cryptocurrency coins. They see the writing on the wall – and it says be on the side of blockchain and crypto or lose in the single largest shift of wealth in the history of mankind.
The SEC was clear in their ruling on the DAO and ICO’s, not all cryptocurrency or ICO’s is a security. Only that they may be securities.
Depending on the facts and circumstances of each individual ICO, the virtual coins or tokens that are offered or sold may be securities. If they are securities, the offer and sale of these virtual coins or tokens in an ICO are subject to the federal securities laws.
In April 2017, FSA in Japan ruled and now recognizes cryptocurrency as a legitimate form of payment. Only non-registered or approved exchanges are prohibited. So why are so many fearful of the end of crypto? It is because we still do not understand it, nor do regulators. It is our lack of understanding that leads to the fear governments will attempt to gnash down on our beloved crypto. Day traders are obsessed with fibs, trend lines and support levels. Not what the technology has to offer. That is what caused the recent pullback from the PBOC ruling. Nothing more than speculation and overreaction to a statement that Goggle translate makes difficult to read. Headlines were full of ‘China Bans Cryptocurrency’ this was not only highly inaccurate, it was completely false. In order to understand the harsh ruling from the PBOC, we need to understand…China had over 42 platforms running ICO’s. 42! How many ICO’s were on each platform, I haven’t the faintest. I am guessing far too many. The bubble was ICO’s, not cryptocurrency as a whole.
Switching back to the bubble of blockchain and crypto, this bubble is about to burst. The technology is pushing hard at its boundaries fighting for release. Held back by one simple thing, us. We have placed far too many expectations on a coin’s value and have missed what this technology has to offer. Chatrooms are filled with why their favorite coin is better than another. Misrepresentations of what is wrong or a projects strength are pushed and accepted as fact. Let this be a warning my fellow crypto enthusiasts, spreading FUD will lead you down the wrong path. Research and due diligence of the investor is what needs to replace the FUD.
The cold reality on the future of cryptocurrency; coins and ICO’s that fight the system will die. Regulations are coming. The market will be rid of the scam coins and bogus ICO’s that have left an ugly mark on our beloved crypto. Left will be viable, legitimate projects that partner with the likes of the SEC, PBOC, Banks and Governments. Not the message the average libertarian cryptocurrency fan wants to hear, but understand this one fact – no one can control that which cannot be controlled.
Blockchain and decentralization is the future. A future that has no boundaries. Allows the unbanked to have a bank. Solves for hyper-inflation in dictatorships and poorly led third world countries. Connects counties in seconds and brings mankind into the technological future we can only dream of today. We are in a bubble, and it’s about to burst.
Are you ready?
~CryptoJayson~
Follow me on twitter @crypto_jayson
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