Bitcoin - I smell 2000 if you are not careful.

You might want to real all positive about bitcoin but hear me out.. (Follow me before you go any further, you will thank me later)

As we enter another year, it was evident that the price of Bitcoin soared immensely. Currently, the price per coin is over $14,000. That was a whopping price soar from $1000 per coin in January, last year. The circulating supply already reached 16, 772,443 coins with th market cap of over $239 billion. This made the Bitcoin, the dominant cryptocurrency in the $616 billion cryptocurrency market.

However, the cryptocurrency world does not solely evolve with Bitcoin. A rival cryptocurrency – Bitcoin Cash – was forked from Bitcoin made it to 4th spot. Its price reached over $3,200 in November 12, 2017 but after merely a week dropped to a value of $1,100. Currently, its value is at roughly $2,500.

Despite the strong demand in the market, Bitcoin is still questionable. There is still the dilemma – whether it is a currency or an asset? If it will be considered currency, then it is considered useless. This is primarily because of its blockchain architecture. Transaction processes and trades involves a lot of financing yet it is not generally used. If it is an asset, just like gold, then it is quite interesting.

Forking is quite the new trend in the Bitcoin world. This is one way of making a bitcoin more liquid. SegWit2X fork, that was scheduled for release on November 17, 2017 was cancelled due to poor support. However, the largest digital currency exchange declared that several miners pushed through. Thus, bitcoin owners must expect to have a new coin, named Bitcoin2x.

This forking idea allowed bitcoin traders to acquire money through speculative run-up. Forking creates replication and empowers the main bitcoin blockchain. This also resulted to greed among bitcoin holders. It was reported that every holder wants to hold it until it reached $196,000.

Forking process produces children. Examples of these children are Bitcoin Cash and Bitcoin2X. When the price value of these children soared high and converted into real money. These are treated like dividends.

Right now, there are a lot of speculations. However, it looks like that bitcoin is an indicating factor of financial catastrophe. A massive amount of cash moving around but not applied in a real productive activity is not a good omen.

Money that are stagnant are useless. However, even if Bitcoin, allowed money to move, it still does not create a real impact in the real world.

This is not a new phenomenon after all. The history can attest to it that this catastrophe – called recession—is preceded by a massive speculation that led to skyrocketed prices. A new start-up dot-com venture, real estate and even gold are few examples.

The hype soared high before it reaches it saturation peak. And just like the concept of the capacitor, it suddenly discharges. Thus, there is a sudden droinof its prices and everybody will be in panic and there is a ripple effect.

The world right now needs more investment in goods and services. Investors should not be tempted to venture into speculations brought by decryption keys. Remember, that despite the hype, the artificially low supply and the unknown creator is not a good combination.

All I am saying is, be careful.