Is the hype around crypto-currencies comparable to the tulip-mania back in the 17th century?
Hello fellow Steemians
yesterday I read this article on insideparadeplatz.ch
https://insideparadeplatz.ch/2017/08/22/bitcoin-und-krypto-tulpenmanie-reloaded/ (german article)
the author of this german written article compares the cryptocurrency-hype to the tulip-mania back in the 17th century in the netherlands.
He basically claims that cryptocurrencies are the biggest speculation bubble nowadays and that there is a real danger it could explode any time soon. He also gives reasons why this could happen like for instance: what would happen if th biggest banks in the world would announce their own crypto-currency? Would there anyone still be interested in bitcoin & Co? What if some government announces one day that Cryptocurrencies are going to be illegal tomorrow? The money loss would be gigantic... (The estimated Market cap is currently around 145 billions $. What if all that money is worthless tomorrow? Who would be the winners after all?
These are the questions I am currently thinking about a lot. What are your opinions? I would like to hear in the comments.
Have a nice day
frank.riel
https://steemit.com/life/@horpey/visa-planning-on-digital-asset-2017823t15716720z
Did it just start by now?
Cryptocurrencies actually have a use, and the circumstances were very different back then. However, individual cryptocurrencies like bitcoin might collapse somewhat soon, and if one of the big players go down, the rest will suffer some damage, but i don't think it will do anything other than halter the growth of crypto.
I agree with you completely but, what if some greedy players in the market (be it politics or banking) suddenly feel threatened by cryptocurrencies and start acting against it? Never forget: They do have power and influence, even if they would never ever admit it.
I've seen this in a similar way already with vaping. For years they've tried to stop or ban vaping because they clearly saw their profits from tobacco getting drained... That is why they started acting against the threat..
I agree . Crypto money could be worthless soon if governments produce their own new (crypto) currencies like in Germany after the German hyperinflation. The so called Notgeld (not officially issued banknotes) lost their value after the government came up with the new powerful Reichsmark.
I think this is why we should keep a close look on what is happening in terms of banking or maybe politics... But I think it will be posted soon, once word gets out that anything could change.
None of this is possible if you understand the decentralised aspect of crypto and blockchain. Bitcoin isn't a company or corporation, it cant be stopped because its decentralised its like trying to stop an idea. Theres already central bank crypto and Bitcoin is still at all time highs because most users of crypto by definition want to navigate away from centralised control. Think of it like downloading files, yes Apple centralised downloads with iTunes but anyone with internet access can still download files despite the best efforts of huge commercial giants like Sony. Everyone likes to give examples like Tulip mania or Weimar Republic without factoring in that we live in the digital age, that does make a big difference to how these ideas will develop in comparison to the past.
But: what is the internet actually worth, or a part of the internet (Which is actually the blockchain) isn't it next to nothing?
You think the internet is not worth anything????? Thats like saying roads are of no value. Value comes from humans utilising things. Without the internet 90% of companies would go bust. without the internet hospitals wouldn't function, schools wouldn't function, food supplies and haulage companies would break down. Not to mention entertainment value, information at the speed of light etc etc. Do Google, Apple, Microsoft, Amazon, Netflix have any value without an internet? Does a car have value without a road? The internet is full of holes though, it was built on unsteady foundations like a city built on sand, Blockchain is rebuilding the city on solid rock foundations .... thats incredibly valuable.
A cryptocurrency is only one of many possible use cases for the blockchain technology. The potential is huge, and so is the potential disruptive effect to several industries but also to centralized state power.
On the other hand, there already is a speculation bubble and it will become even bigger and will eventually burst - as it always does. Many people want to invest, this attracts many projects, many of which won't be viable or are even scam. However, many of the good projects will not only survive but will become even more valuable once the bubble will have disappeared.
This is similar to the .com bubble, but not similar to the tulip bubble - like the www before, blockchain tech has a high intrinsic value and not only a value which is mostly driven by trades.
Many corporations, large and small, have started to explore the possibilities of blockchain and early adoption is happening at a higher speed and a higher intensity as it did for the www. Even some countries have begun to embrace the technology, e.g. with US states accepting smart contracts as legally binding and a baltic state (I forgot which) providing some public services with blockchain tech (e.g. even notary services, dramatically reducing the costs of these, being way too high anyway, at least in Germany in Austria).
There are quite some good readings out there regarding the potential of the blockchain. I recommend "The Business Blockchain: Promise, Practice, and Application of the Next Internet Technology" by William Mougayar, with a foreword by Vitalik Buterin. And "Blockchain Basics: A Non-Technical Introduction in 25 Steps" by Daniel Drescher.
Thank you for the reading tipps. I will certainly have a look into it.
Polybius Bank in Estonia, first crypto bank.