We've all heard the phrase that "Bitcoin is a bubble", a quick search on Google will provide you with literally hundreds of articles which quote numerous 'reputable' sources, all banding together to try and convince the world of that exact notion. But how much truth is there to it, and do these so called 'reputable' characters have an ulterior motive?
In this article I am going to try and objectively look at the type of people who are calling Bitcoin, and crypto in general, a bubble, and compare this industry to the current housing market in my homeland, the UK.
Obviously, after reading the title it is probably quite easy to see what I think about the comparison of Bitcoin and the UK housing market, but I am hoping that after reading this you will understand why I hold the opinion I do.
When you consider the type of people, and the industries in which they work, who are doing all that they can to destabilise the cryptocurrency industry I find it all pretty unsurprising that they do not want Bitcoin et al to succeed.
Why would they want it to? Why would JP Morgan want Bitcoin prices to surge before they manage to get a substantial holding in the digital currency? Why would the world's elite want the wealth of the world to be redistributed fairly? Why would centralised banks, who control pretty much every aspect of modern day life, want a decentralised financial system in which each person controls their own finances to succeed? Spoiler alert, they wouldn't.
You remember last September when a senior ranking representative of JP Morgan went public to call Bitcoin a fraud before his firm went ahead and plunged billions into the cryptocurrency, right? Well, that fella has now come out and gone on record to state that he regrets calling it a fraud, surprised? No, you're not.
The investing giant was indulging in a bit of market manipulation so they could acquire some cheap BTC before the price rocketed, which it did. Guess what's more, JP Morgan now trade Bitcoin and one of their former senior traders has gone on record to state that banks have fallen behind the king of crypto and cant catch up. Funny that, innit?
This is not the only example of major financial trading institutions attempting to besmirch the name of crypto and I can only think there is one reason for it: they're scared.
They're scared of the fact that crypto is responsible for a flock of people taking a huge interest into the inner workings of the financial industry and learning how to use trading platforms. They're scared of the fact that so many people who were previously considered to be below the poverty line have actually managed to become wealthy enough to quit their jobs and live off their crypto trading endeavours. They're scared that the power the 1% elite section of society holds over the rest of us is actually capable of being taken away through crypto.
The UK Housing Market
When you think of what the majority of extremely wealthy people around the world all have in common (other than their wealth of course) it's quite easy to see why they all want you to believe that crypto is a fraud/bubble: they own property, and a lot of it. Further to that, a lot of the richest own property in London and the rest of the UK.
Now, you'd be excused for asking "what on earth has any of this got to do with the UK housing market being a bubble?" well, let me explain myself. The UK housing market has been benefitting from artificial inflation for well over a decade now (since the market crash of 2008) and has culminated to a point where your average person doesn't even bother dreaming of owning a house anymore. There just isn't any point.
The average house price within London last year was sitting at comfortably over half a million pound (according to Rightmove), for the majority of people this is unattainable to say the least, especially when you consider that minimum wage in London is just over £7 an hour. This leads the majority of Londoners down the path of renting their property at an exorbitant price due to what landlords and the bourgeoisie call supply and demand. But how can supply and demand exist in a field which is essential to life?
Further to that, how can you apply the rule of supply and demand to housing when it is a criminal offence to squat in the UK, and it is also a criminal offence to wild camp in the UK? Due to legislation the demand will always be there and due to the wealth of the 1% the supply can be controlled how they see fit.
It's no secret that the entire UK has a number of houses which are sitting empty due to people not being able to afford the cost of buying or renting the home, if this weren't a centralised market where a select few people own a large percentage of the land this would cause the prices of the properties to come down. However, in the UK, prices are rising.
This is the bubble, and crypto is going to pop it. The bourgeoisie who own swathes of properties throughout London and the UK can afford to have a housing portfolio which isn't fully occupied as they are already bringing in a substantial income from from the few properties they are renting out. They already made half a million last year when they managed to sell one of their properties. They already have such a substantial nest-egg that they can live off the interest which is paid to them by their bank or building society.
It literally makes no difference to their finances if their properties sit empty for years as they have capital that most of us can only dream of and this is why they are all doing their utmost to kill confidence in crypto.
These people are not dumb, they wouldn't have the wealth they do if they were. These people know that when, not if, when, crypto reaches mass adoption and the financial industry is fully decentralised all the early adopters of the system will be the new bearers of society's wealth. They're aware of the fact that cryptocurrencies and blockchain technology have the power to fully destroy the status quo which exists worldwide.
This is why I believe that the crypto industry is taking so much fire from the world's elite. Let me explain, if John the checkout lad in Sainsbury's has suddenly seen his crypto investments become worth a couple hundred thousand pound he will no longer depend on his current landlord for a place to live, further to that, he will no longer need to work at Sainsbury's. As a result of this Sainsbury's need to find a new checkout lad and the landlord has lost £750 a month for a room in his property.
Now, apply this to thousands of people. If a large enough percentage of the country's population were suddenly in the shoes of John, the Sainsbury's check out lad, and didn't need their job or to rent a property Sainsbury's would need an entirely new workforce and a number of landlords would need to find new tenants. This would cause a knock on effect which lowered demand for rooms at £750 a month and for jobs which pay minimum wage. Sainsbury's would have to offer a lot more in terms of wages and landlords would have to sell up or drastically lower prices to make people interested in their room.
This is why I believe so many people with substantial wealth are calling Bitcoin et al a bubble, it represents a change to the status quo which would seriously impact their ability to control the poverty within the world. And that is what they want, control. With the current centralised state of affairs a very select few are able to manipulate everything from the price of bread to the price of a bed, and it is about to change.
When the UK's housing market bubble pops (and it will) don't be surprised when you see a substantial number of crypto rich people buying it all up. Don't be surprised that the mass adoption of blockchain technology could well be enough to completely redistribute the wealth of the world.
Bitcoin isn't the bubble, if it is, the current UK housing market is a hot air balloon with a huge hole in the side.
Please remember that this article is not to be taken as any form of investment advice and that you should do your own research before investing your hard earned cash into anything. We would also like to remind you that Something Decent is not in anyway responsible for the distribution of airdrops, bounties or giveaways unless it is stated that we are personally conducting them