Why the cryptocurrency market is not a bubble

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Many argue that the cryptocurrency market is just a bubble or a market that is here today and after the much hype and speculation it would be gone, they feel it's quiet unprofitable investing in this market and such investment wouldn't be really sound as they feel crypto it's a bubble which can burst anytime.

But how true is this? Is the cryptocurrency market really a bubble, I for one don't agree and believe the market is so much more and I will talk on some of the reasons why I believe the cryptocurrency market is more that just a bubble.

Factors proving cryptocurrency market is not a bubble

• Technological Innovation

Well one of the reason why it would be really absurd to consider the cryptocurrency market as a mere bubble is due to the high innovative technology that cryptocurrency operates on, I mean for a mere bubble to be based on this technology makes us wonder if really it's really a bubble.

Blockchain technology has greatly impacted every sector not only in finance but in other areas as well and this groundbreaking development in this so many sectors like supply chain voting and more so the world of finance really makes it illogical to arrive at the conclusion that cryptocurrency it's a bubble.

How can cryptocurrency be a bubble and yet boosts a technology which has helped to redefine the financial landscape and greatly improve other sectors it's usefulness is so versed that calling cryptocurrency a mere bubble would be simply insanity.

• Institutional Adoption

How could there be so much institutional adoption of cryptocurrency were it just a mere bubble, this institutions have accountants and financial managers and analyst who after careful consideration decided that investment into cryptocurrency would benefit their firm one way or the other, I mean they wouldn't invest in something they don't believe would improve them greatly.

So for there to be so much institutional adoption means that they consider cryptocurrency like Bitcoin for instance to be of immense value and not a bubble.

PayPal, Microstrategy, Tesla and even square are heavily in on Bitcoin, would all this great industries and companies inevst in something they believe was a bubble with no real basis for grown in the long term, not at all they know the value of cryptocurrency and especially Bitcoin so much so that bitcoin has become a legal tender in some countries.

A bubble a legal tender, ofcourse not so in a fine margin there is a clear distinction between Bitcoin and the very concept of bubble asset so cryptocurrency possesses real value.

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• Decentralized Finance (DeFi)

Also how could something that is a bubble offer a wonderful innovation like defi that is decentralized finance which perfoms every thing done in the traditional financial institutions with low cost.

A mere bubble surely wouldn't have a platform that enables lending and borrowing, no intermediary needed leading to growth like never seen before as most people have come to enjoy decentralized finance more than traditional financial services and this right here gives cryptocurrency real usecase that is undeniable giving further evidence that cryptocurrency is not a mere bubble.

• Store of Value and Hedge Against Inflation

Inflationary economy had seen many flee to Bitcoin for hedge against a constantly declining currency. In what world is a bubble used as a hedge something that gold is know for and yet here and cryptocurrency is sharing that spotlight with it, can a mere bubble achieve this? Certainly not.

The fact cryptocurrency is used to provide hedge it equally shows just how great it's service is and mustn't be taken for granted. So cryptocurrency as a hedge means is certainly not a mere bubble.

Conclusion

Cryptocurrency goes beyond bubble and is able to provide real utility which makes it even valuable and much more than what we perceived it to be considering it's volatile nature so let's make the best use of this unique gift we have been handed in our time.