Bitcoin in 2018: The bubble has burst (part 1)

the Bitcoin and its surrounding Ecosystem has been a wild year. With double-digit losses within a few weeks, crypto-currencies were much less "value" than before. But how can this value be measured? And it's not so bad if the Bitcoin bubble bursts? A retrospective at the end of the year.

By Phillip Horch
26. December 2018ShareFacebookTwitterLinkedInxingemail

The fluctuations and unpredictability of the Bitcoin price raises some burning questions: How much Bitcoin is worth? Bitcoin is worth anything at all? What remains, if the bubble bursts?

*Disclaimer: The following comment will be shown things partially simplified, and distinctions are not made, which may be durable. They are due to the simplification and reasoning, although they have the claim, circumstances, past, and future prospects, represent largely accurate. Some of the wording and the harsh distinctions, as well as any Pinches of polemics are to see the Text. So it comes to "the bigger Picture", the Interpretation of the Vision of Satoshi Nakamoto. Suggestions, criticism and praise are in the feedback round in our Discord-Channel always Welcome. Back to the topic.

No question, the past year has been from an investor's point of view, catastrophic. Those who invested towards the end of last year and missed, in good time to cash out, had to watch as his Fiat volume shrinks. Who looked more to be a crypto-asset that will, however, have reported virtually no losses. Just when he, she or it is a certain Token kept, pulled a Fork through and the good free digital money, the Blockchain, or one of their Equivalents to rain. Be that as it may, It is the question as to the value of crypto is always currencies. To this coarse approach, you should see the people, the crypto-currencies use and How you do that.

Gamble, bubbles, Trading vs. Develop, trust and Hodln

The Community can be roughly divided* into two camps divide: There are the One and the Other.

The A – depending on the orientation on short – term gains and look at the chart the development of what I get when I get out? How do I maximize my profit? We call them the (traditional) Trader.

On the other hand, there are those who believe in the technology and the promise of Bitcoin and the idea of Satoshi Nakamoto: A new form of Currency will prevail. A Revolution of the financial system and a redistribution of global wealth. This works distributed in cooperation, in the whole world, and the decentralized community. We call them the Hodler.

Trader vs. Hodler – the main difference

The main difference: For the Hodler it comes to Fiat, for the Other to crypto. If Bitcoin (as a proxy for other crypto-currencies) should prevail, is of course at some point to be of secondary importance: It is paid for with Satoshi's. And these are just the value of what you get for it. The ongoing economic crisis in Venezuela has shown this in the past year, impressive. There is the people, the crypto-use currencies, (relatively) regardless of how many Bolivar is the Bitcoin value is itself worth nothing. Since it is Bitcoin that counts. Above all, as a store of value, even as their own Bank, with the assets and capital to transport and store. And by the way, in order to protect themselves from the restrictions of a pseudo-democratic government and the failure of international policy. The pension is cancelled in Bitcoin better than in the state currency.

The other side, the Trader, wants Fiat and lots of it. (*Again for emphasis: Here is deliberately polarised and generalised, in order to set a certain point. There are, in reality, just as traders want to believe in the technology and Hodler, the money. Or investors pursuing both goals, as well as many other possible special forms of human. However, it is not to go here. No one has the intention of offending Trader or Hodler on the feet and in a corner, also it comes to moral evaluations of this).

provided at Least in the year 2017, many that the market was oversaturated. The promise was there, but the technology is still not delivered. Overheating was not only in Mining, but especially in the case of the rates of crypto currencies.

Because:

"The speculation percentage is very high, while the use of crypto is barely present currencies at the moment – the market is probably still too young. Many smell the easy money, invest blindly and have very little idea of the technology behind it. We hold, therefore, that The market has clear bubbles character, strictly speaking, Bitcoin is currencies, as Fiat is a bubble. (And both are blown often!) However, he should not disturb us, indeed?“

BTC-ECHO, 27. May 2018

at last the end is exactly what makes bubbles of Investment: people invest a lot of money, an Asset worth more than, in retrospect, is supplied. The value is only attributed from the Outside, the Interior can't compete here.

Bitcoin is not a typical bubble

But Bitcoin is not a typical bubble, which bursts, and then nothing is left. It contains a core that has the Potential to gain a huge value, without disturbing all of the air that surrounds him.

the Iridescence of the bubble, the enticing Sparkle and Shine in the eyes full of hope mirrors the promise of profit. Blinded by the Reflection of a Narcissus effect, then threatens: It misunderstands and underestimates what you have in front of you, because you are so blinded by what you see. And the core does not recognize, and especially forget: It's not about Fiat, it's about the technology. And money. It's all about trust in technology and distrust in the established social patterns which break up slowly.

And here everyone can make a choice: Am I my own Bank, or any other of my Bank? Can I take the risk on me to be there for my own money to be responsible or do I have to pay for it, others to preserve it for me, and its value is constantly changing? Is it worth it?

Even if it disturbs, however, the existing banking system, why should you trust Bitcoin or any other crypto currency? Will rise the price of Bitcoin ever again or the bubble has burst for good? There are developments that give hope that the promise of the Community come true at last? Can develop an internal value of the speculative share will continue to decline?

Some of the points suggest that the current situation is very much better than the provide full views of the course makes pages think.

What, the why, the situation is very much Better than it looks on the market and how it (hopefully), you'll get in soon (more precisely at 16:00).