Economic Bubbles Aren't Completely Bad

I love the crypto space! There are variety of reasons for this that many of you probably share:

Decentralization
Economic Freedom
Opportunity
New Technology

The most common thing I hear from detractors of crypto currencies is, "It's just a big bubble!", "Tulip Mania", "Remember the Dot Coms", etc.

I forgive most of these comments because they know not of what they speak. They are usually sheeples that are just parroting whatever they read or hear in national/international media. My response is what shocks them most - It is a bubble and it will burst and crypto currencies will take a tumble and people will lose money and some of them will jump off bridges and it will be a sad day.

It will not, however, be the end of crypto currency, the blockchain technologies, or the small eco-systems such as Steemit that have emerged in this new dawn of innovation. I'm writing this as I watch the panic-stricken sell-offs of BTC, ETH, and XRP on my favorite exchange and see the prices plummeting, climbing, and plummeting again. (Yes, I'm buying the dips too)

The crypto sphere will go on. There is a natural phenomenon that takes place whenever new innovation is introduced to society. The initial stages are met with a lack of understanding by the mainstream and visionaries are labeled as "idiots" or "mad scientists". Eventually the concepts get a foothold and some people with some spare capital invest in what they think is a worthwhile risk, which then in turn gets the masses wanting to jump on the coattails of these investors hoping to make a quick buck. We saw this last year with the ICO mania and a massive influx of retail investors that have driven up the market prices of cyrptos in general. The nay sayers keep plugging away and create buzzwords like "bubble" as if a bubble is a bad thing.

Here are some historical references of bubbles that they aren't telling you about. Ever heard of the oil bubble? How about the automobile bubble? The home computer bubble?

So, ask yourself, "Do we still use oil, automobiles, and home computers?" Well, duh. "Have companies and millions of people profited from these innovative products?" Again. DUH! So what makes people think that a crypto bubble will destroy the crypto sphere and end the enterprise completely? Certainly not logic or any detailed rational thought. If you never heard of these bubbles, it is because in the end we didn't care about the failures. However, if you want to learn more about them just use your favorite search engine and read up on them. For those of you that are lazy like me, here is a video on the oil bubble on YouTube. It is documentary based on the book The Prize by Daniel Yergin.

More recently we had the Dot Com bubble, but somehow this bubble is lumped in with the "housing bubble", which wasn't about housing as much as it was about making bad loans with other people's money ie. big Wall Street banks. To be perfectly honest, I HOPE that Wall Street bets big on some dumbass alt coin and loses their shirt. Maybe this time we won't bail them out.

Interestingly enough, it is the Wall Street bailout that spurred the development of Bitcoin to begin with in order to solve the problem of centralized banking. Marc Hochstein does a really good job explaining this in his recent article on Coindesk and it is worth a read.

https://www.coindesk.com/housing-dotcom-bubble-cryptocurrency-mania-resemble/

When the "bubble" does come, it will be more of a "culling of the herd", "weeding out of the weak", or "trimming of the fat". These are the terms that we should be using to describe the elimination of some of these dubious (some are flat out disingenuous) coins/tokens on the market.

A large number of the crypto currencies are going to not only survive, but thrive. The coins that make it will be those that solve real problems, provide utility to their users, and represent something of value. My goal is in figuring out which ones will still be standing and to be heavily invested in them. Of course, I will be wrong about some and you will too, but we will be better for our efforts nonetheless.

So the next time you have somebody throw out the "bubble" argument, just ask them how their bubble car is doing running on it's bubble oil? If they look perplexed, tell them to use their bubble search engine on the bubble internet.

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