Bitcoin, the peer-to-peer decentralized digital currency, recently topped $8,000 amid the crisis unfolding in Zimbabwe and Venezuela. Despite maintaining all the hallmarks of a bubble, the most avid of bitcoin proponents argue that it isn’t a bubble at all.
The topic of conversation isn’t how to protect yourself in the event of a crash, but rather if it will reach $10,000 before the end of the year.
And this confirms it in a new study.
According to a recent study by DataTrek Research and Triad Securities Corp, a little more than one-third (39 percent) say bitcoin is in a bubble. Meanwhile, a little more than one-quarter (27 percent) think bitcoin will rise “at a much slower pace,” while 16 percent are predicting bitcoin’s value will double in six months.
Seventeen percent took the wise approach: did not know or did not provide an opinion.
The survey also provided another interesting insight into the bitcoin community: there is a split in thought when it comes to the safe-haven capabilities of bitcoin. Forty percent say they see bitcoin as a safe-haven asset similar to gold, while 42 percent do not see it that way.
Many bitcoiners dismiss those who warn about a potential crash or a pop in the bitcoin bubble. Like those in the 17th century tulip bulb mania in Holland or those in the dot-com bubble, they think it will go on forever.
The blockchain technology is being celebrated and championed by pretty much everyone, but there are still plenty of investors who are hesitant about bitcoin – for instance, what happens when something better than BTC comes along?
For the foreseeable future, the bitcoin ride will go on longer. But when the ride crashes, there will be a lot of pain to go around, especially for the newcomers.
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