There was a time when Bitcoin hardly had any monetary value. Sure, there were already several Bitcoin enthusiasts at the time bit they never really thought it would ever come as far as it did now.
The time that we have right now is what we call the Bitcoin Era. Up until now, there are still some skeptics who continue to criticize the function of Bitcoin. Even so, one cannot deny that a lot of countries are actually making use of this technology now.
There are some leaders who had already attempted to create their own cryptocurrency to be used as a national digital currency.
In the past few months, the monetary value of Bitcoin has greatly increased. With that, some people are starting to fear the possibility of it going down to an absolute zero.
In the internet, you would often encounter the question: “when is Bitcoin going to burst?”
Before we talk about this specific aspect of Bitcoin, we believe there is a bigger question that we need to ask: “is Bitcoin really a bubble?”
What Is A Bubble In Financial Terms?
To categorize a financial asset as a bubble means that this particular asset has been on a stale state for so long and then all of a sudden, it experiences an extreme rise in monetary value.
Basing from that definition, it is not surprising that a lot of people have been describing Bitcoin as a bubble.
Take note in the beginning, there was little to no one would take interest in Bitcoin. Sure, there were some people who were trading this digital currency but during that time, Bitcoin was yet to be identified as an asset. The only people who traded them were the same people who were considered the pioneers of this technology.
But after some time, investors have began obsessing on Bitcoin when people became overnight millionaires began popping out in the headlines.
Apparently, people who made a hobby out of collecting Bitcoin back in the time had benefited from the popping of the Bitcoin bubble.
But this is not the end of the story.
When a bubble is popped, it will not take long before the bubble starts to burst.
What Does Bursting Of A Bubble Mean In Financial Terms?
A bursting of a bubble refers to the state of an asset’s monetary value significantly dropping as quickly as it came up.
In the case of Bitcoin, people have been keeping an eye on how quickly its monetary value has gone up. With that, several people are wondering how long it will take for Bitcoin’s value to plummet down once again.
In the past few months, the value of Bitcoin has been showing consistent signs of bursting. However, it has not happened just yet.
There has been no indication that this dreadful event is actually going to come. The possible bursting is only a theory made by some people in the internet. Despite the lack of facts regarding the bursting, the possibility puts fear in the hearts of Bitcoin investors.
A bubble refers to the drop of prices permanently. This means that if ever there is going to be a Bitcoin burst, it is quietly impossible for this digital currency to ever recover.
What Happening Now?
Right now, investors are witnessing a consistent decrease in the price of Bitcoin but this is actually a good thing.
The Bitcoin community does not believe that this is the mark of the end of the reign of Bitcoin. On the contrary, people believe that as soon as this phase is over, Bitcoin is going to rise bigger than it ever has before.
With that, it is believed that now is the best time to buy Bitcoin. By May 2020, people are destined to witness a significant rise in the monetary value of this cryptocurrency. With that, it is believed that lots of people are going to be converted into millionaires and billionaires once again.
So, going back to the question: “when is Bitcoin going to burst?”, we believe the answer to that is “not anytime soon”.
So far, what we are seeing the charts is that Bitcoin is going to rise. However, in the further months that are going to come, nobody really knows.