When the #bitcoin keeps rising, the question that everyone thinks about “Is bitcoin a Fraud?”
Value of an asset which increases fast doesn’t mean that it is a balloon.The value must increase without demands/benefits to be a balloon. For example the tulip ballon in Netherlands 1637. Why did the value of a tulip increase like that? There is no realistic reason.
Or 2008 USA mortgage balloon. The car decreases in value from gallery to house. Why does the value of a house increase in every second? Houses increased 2-3x in value in 10 years.Did the population grow 2-3x in that time?No.So why did the houses increase that much in value People who say bitcoin is a ballon, can not see the real ballon which is paper and concrete. When the mortgage collapsed, the central banks of the world monetized almost 30 trillion dollars in cash. That 30 trillion dollars are using for concrete! There are residences for investment everywhere! Especially in China! They are building ghost towns, railways, bridges etc. which are used by no-one. Some of the money enters to exchange markets.Although the real economy stops growing, the exchange markets set a new record everyday. Almost every bankers say that bitcoin is a balloon. But did the bankers say that mortgage is a balloon in 2008? NO! So how much money in that 30 trillion$ invested in bitcoin?100 billions to bitcoin,70-75 billions to other coins.Totally 0.17 trillion$ -So how does #Bitcoin and other #cryptocurrencies are rising crazily although there is so little money invested in? Because there is an ongoing invisible crisis in both cash and finance systems worldwide and world is looking for a way to get out of it. World has been administrated by cash money which is not based on real and monetized unlimitedly like dollar and others since 1971. USA has been taking any kind of raw material, goods, service and they have been paying it back with green inked paper about 40 years. China has saved up 2 trillion dollars in last 40 years by selling the products that they manufactured to USA. But when USA economy collapsed in 2008, they monetized that money in 2 years! In these days both China and the other manufacturer countries are looking for a solution for that! They save up gold as a solution! The answer of the actors of knowledge-based economy is #cryptocurrencies . Cryptocurrencies has been existing since 90’s but none of it has stayed alive! After 2008 crisis, bitcoin has succeed against the unlimited monetized cash problem. here can be only 21 millions of bitcoins in the world. The other #cryptocurrencies are also limited! There is no limit about creating new crypto coins but in these kind of products, generally the first ones stand and the others can’t. For example everyone can build a better social media than Facebook today. But Facebook has reached more than critical number of users. Demands tend to increase over time. So, a currency with limited supply will surely gain value. That is the reason why gold&silver has always valuable for centruies. Western governments, and elites started to use bankotes because they can print money and become better-off while poor struck by inflation. Printed money and construction schemes like mortgage have enslaved people. Ordinary people working for a lifetime just to survive. gold standard, cryptocurrencies, blockchain fighting with this corrput system for freedom and manufacturing. Even though there are some fraud altcoins. Even though #bitcoin can't last forever. Coins will gain value until our monetary system changes which creates crisis itself!