5 Reasons Why Bitcoin Is Not A Bubble

NASDAQ Since the beginning of the year, the price of Betcoin has risen six times, and since the time exceeded 6000 dollars. It is not surprising that many experts regard this violent rally as evidence of a bubble in the encoded currency market.

It should be noted that the speed at which coded exchange rates are high was last observed during the dot com bubble in the late 1990s. But the basic rule of Betquin is quite different from that of Internet stocks, and its future is promising.

Here's why the future of Bitcoin is quite different from what Internet companies have.

5 Reasons Why Bitcoin Is Not A Bubble:

1. A legitimate means of exchange

One of the biggest problems of the last time was the cautious attitude of legislators and financial regulators, who are confused by its decentralized nature and its relationship with the criminal elements of the Dark Network at the dawn of its existence.

In any case, the attitude of the authorities gradually changes. In April, Japan formally allowed the Betcoin as a means of payment, which quickly raised its price and speed of deployment in the country.

In the Philippines, the population is using more and more betcouins in remittances. This has not escaped the vigilance of the central bank. In February, the bank said it would control the biscuit, giving the encoded currency the legal status of which it was advisable to use for remittances.

In the near future, Bitcoin may become the full vehicle of payment in those countries. It is likely that things will continue to move in this direction if we take into account the increasing demand for homeowners from investors and online payment systems all over the world.

2. Demand from commercial institutions

In the early stages of the emergence of the Betcoin they accepted it in only a small handful of stores (and often the owners of those stores were excited about the encrypted currency). At the moment, the situation has changed drastically, and payments can now be made with biotechnologies with major technology companies and Internet stores.

The rapid rise in the price of Bitcoin and media attention and recognition in some countries such as Japan has led to an increased interest in currency coded by businesses. The arguments in favor of Bitcoin in online trading are very strong because commission is lower than that in credit cards, and the risk of fraud is zero. Encoded currencies allow coverage of buyers residing in areas where the banking system is underdeveloped, attracting new clients technically abysmal.

The faster the Bitcoin spreads the demand for digital currency is higher and more stable. If we think that it is limited in commercial terms, its potential for growth is great.

3. Maintaining wealth in countries experiencing economic problems

Another reason for the fact that Bitcoin is not a bubble is that the demand for encrypted currencies is high in countries where economic problems are.

For example, in Venezuela, Bolivia and Zimbabwe, Betcoin is used to maintain savings and is used as an alternative means of payment in circumstances of devaluation. This is evidenced by the increase in the volume of trading in inverse proportion to the value of local currencies and economic growth in the troubled regions.

Bitcoin allows companies and people in countries where the control of capital movement is strict receipt of cash transfers from abroad. In other words, everywhere, where the economic crisis is observed, the demand for Betcoin is increasing and spreading.

4. Bitcoin has become relatively well known

It may be said that 2017 became a year when the public knew about encrypted currencies for the first time. If you had asked any passerby about the Bitcoin five years ago for example to look at you confused. Today most people have heard about Bitcoin, others even know that its value is more expensive than gold.

Now that the bitcoin has become popular, the demand from new investors is huge. Investment institutions are also considering investing money in Bitcoin and other digital currencies.

5. The quantity of bitcoins is limited

Finally, the main reason for this high price is that the increasing demand runs into limited supply.

The encrypted currency is set up in such a way that the maximum amount of protein is 21 million. Besides, the speed of creating new currencies decreases with time.

Thus, the increasing demand for encrypted currencies faces not only the limited quantity but also the ever-decreasing supply.

All the signs suggest that the debate is whether or not the Bitcoin bubble will continue. However, there is no need to compare encrypted currencies and Internet stocks because of the fundamental differences between these two types of assets.

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