There has been a lot of speculation about how cryptocurrencies will impact and influence our life in the coming years. I don’t like using the phrase cryptocurrencies, are not all of these coins are being used for monetary transactions in the way Bitcoin is – but anyway – that’s the language I need to use to communicate.
A lot of people are comparing cryptocurrencies to the Internet, and some go way back to the industrial revolution. Although cryptocurrencies will play a significant part of our every day lives, at the same time, we do need to understand that there is a sense of great optimism and euphoria, that isn’t always based on reality. Bitcoin for example: it’s a cryptocurrency being used by more and more people every day. However the hike in its price/value, is not based on more people buying say T-shirts online using Bitcoin, but rather because of pure panic buying.
No one wants to be left out, the same way they missed out on Amazon or Facebook stock. So people are jumping in on a train that no one knows where it will end up. Don’t get me wrong, I’m a cryptocurrency fanatic myself, however a well balanced approach to this new technology (blockchain) is needed in order to avoid over inflated prices and yes… a bubble. When bitcoin goes from 10K to almost 20K in just a few days, that doesn’t tell me that there was 100% increase in Bitcoin transactions (in terms of commerce) but just that the crypto community has simply pushed the price up 2 fold.
On top of that, for investment purposes, keep in mind that bitcoin is already super expensive to expect high returns (as its already had.) There are smaller priced and lower cap coins, that have great potential, and cost just a fraction of what bitcoin costs. I also would encourage a lot of people to start looking into ICOs. Here is my top choice, and you will soon find out why it should be your top choice too! https://rentberry.cryptonomos.com/