The Fiat Bubble

The Hype

With the recent bitcoin futures listings, the hype surrounding Bitcoin being a legitimate if not highly risky investment hits a fever pitch. With prices peaking at $18,000 in less than a few months, the meteoric rise pulls everyone young and old to invest.

The Fear

And then the pullback begins as reality sets in. People began to realize just how little they know about how Bitcoin works were in for a rude awakening. The slow block speed, the exorbitant transfer fees and the difficulty to exchange back to fiat currency combined with the general fear of security meant that people invested without research would panic and head for any direction, even the ones who head towards certain danger.

The Misdirection

In middle of the chaos, there are groups of people who have vested interest to see Bitcoin and cryptocurrencies fail. Governments or financial institutions want them to fail because they have established all the infrastructures to serve their needs and so they would attempt to deter, seize or over-regulate a competitive system. When regulations appear too overreaching, the misdirection of the media would divide or discourage the populace while they themselves buy or hoard at a discount.

The Fiat Bubble

Naturally all this talk leads to a bubble about to burst. Would Bitcoin fail? Maybe. Would cryptocurrency fail, no. Because the underlying technology is what the real investors are banking on and not the value that is perceived or speculated. Meanwhile, a quiet shift is happening as weaker nations take desperate measures to stay in the black, by hook or by crook. By far the biggest question is if Bitcoin and cryptocurrencies become mainstream, does that mean fiat currency’s’ bubble would burst? Is it too expensive to manufacture, maintain and process money the old way? Time will tell.