Bitcoin Bubble it's doomed to Crash

 The Bitcoin Bubble it's doomed to Crash.

The domain name bitcoin.org was quietly registered online in August 2008. Then, a whitepaper titled "Bitcoin: A Peer-to-Peer Electronic Cash System" was circulated on a cryptography email group two months later.

Bitcoin Crash

One thing we can be sure of is that nothing is too big to fail. During the past century, humanity has seen some of the greatest financial crashes and frenzy ever recorded. One of the biggest lessons we can learn from history is that things usually get too big before they fly. As with the tulip bulb frenzy in the 17th century, the dot-com stock boom in the '90s or the stock market collapse of 1929. But, will this be the case for bitcoin? Are We Heading to a Bitcoin Crash? It is essential to look to the past to see how the future will unfold.

Bitcoin was created in 2009 after the 2008 financial crisis. A technological marvel aimed at escaping the entire banking establishment. A disruptive way to challenge the regulation, centralization and control of fiat currencies and the government. An economy needs only as much money as the transactions and activities that take place within it. So if many people want to start paying on the bitcoin network, the value of bitcoin will have to increase or stay at a higher level to accommodate such demand.

The paper marks the first time Satoshi Nakamoto has been seen on the Internet, and it permanently associates the name "Satoshi Nakamoto" with the cryptocurrency.
People have begun to consider the possibility of the word Satoshi, representing an individual or group of people. is a code name.

On April 23, 2011, Nakamoto left one of his last messages,

"I've moved on to other things,"

Referring to the future of cryptocurrency, he also said, "In good hands."

Bitcoin has seen a lot of ups and downs since its inception in 2009. The currency has gained over 400% in the last year alone.

It is worth noting that people use bitcoin at the moment because it feels useful and strong, but they are also hyper-hyped, sometimes driven insanely by the crypto phenomenon, even Even without fully understanding it. The value of bitcoin is primarily driven by speculators, followed by enthusiastic momentum by its investors. Big players have joined the craze and are actively manipulating the markets through high investments and high selloffs. The inflationary spiral is notorious and could end bitcoin.

What makes bitcoin valuable

Bitcoin is intrinsically untraceable.

• It is an autonomous system of commerce that protects the identity of its owner similar to digital cash. This is what makes cryptocurrencies powerful and attractive.
• In recent years, crypto has proven itself with De-Fi for finance, NFT for art, smart contracts and many more to come use cases that could revolutionize our entire society.
• In 2010, a small number of retailers began replacing the traditional currency with bitcoin.
• The bitcoins used to buy those pizzas are currently valued at around $100 million. Other businesses have also started investing in the currency.
• Tesla bought nearly $1 billion in bitcoin in February 2021 and announced plans to allow customers to pay for electric cars using the digital currency.
• The country EL Salvador is planning to build a "Bitcoin City" which will be the world's first cryptocurrency-based city.

Recently, Eric Adams, the elected Mayor of New York, who will earn around $260,000 a year, has announced that he will take his salary in bitcoin.
Experimenting with a new type of currency, it turns out, is not without cost.
Bernard von Not Haus, a Hawaiian, dubbed the budding form of the currency known as the "Liberty Dollar" in 1998, with disastrous results.
Bernard was charged with breaking federal law and sentenced to six months of domestic imprisonment and three years of probation.
E-gold, one of the earliest digital currencies, was shut down by the government in 2007 amid controversy on grounds of money laundering.

US Treasury Secretary Janet Yellen urged efforts to "cut down" bitcoin in January.

A good reason to remain anonymous

Satoshi Nakamoto mentioned in the Bitcoin white-paper. 

What needed is an Digital system based on cryptographic reports rather than trust, which allows two different people to buy or sell the taker or maker without the third party interruption.

Bitcoin creators avoided legal repercussions by remaining anonymous, leaving the ambiguity at least responsible for the rise of the currency.
It is safe to say that the success of bitcoin is largely influenced by the anonymity of its original creator. It had to be done.
Furthermore, one of the main concepts of bitcoin is that it is a decentralized currency with no affiliation to well-known institutions or individuals. We can assume that Satoshi has set an example anonymously.
According to a public filing by cryptocurrency trading platform Coin base, the value of bitcoin could drop if Nakamoto decides to step forward.
As a result, the entire crypto market will collapse.

Further Inspiration

Satoshi's motivation is at the centre of most of the mysteries surrounding him.
Why does one go to the trouble of establishing a sophisticated and clever decentralized currency, which later disappears from the public eye?
A closer examination of one of Nakamoto's first comments on the bitcoin concept sheds some light on its motives. In February 2009, Nakamoto wrote,
Banks must be trusted to hold our money and transfer it electronically, but they lend it in waves of credit bubbles, with barely a fraction of that in reserve. We have to trust them with our privacy, trust them not to let identity thieves get out of our accounts. ,
Others suggest that the timing of bitcoin's emergence is a clear indication of its cause: the currency, created in the years after the housing bubble burst in 2007, may have been invented.

If bitcoin transactions continue to increase, but the currency's volume stops doing so because it has a limit, it will suffer a deflationary bias. That is, pretty much every bitcoin will be revalued and the prices of commodities denominated in that currency will fall, which is not at all positive for economic activity.

All money is needed to provide a stable index of value for any and all commodities available in the market. Currencies like the US dollar are incredibly good at this, they also act as legal tender by central banks and treasuries. But if it requires adoption, there are many legal, regulatory and cultural barriers to face in the way of mainstream use of bitcoin.

Contrary to what many people think (including financial experts and traders) bitcoin is not a currency, but closer to a commodity. a digital. Think of it like a digital version of gold without the later internal use. Bitcoin has all the characteristics of being a commodity as it is scarce, portable, secure and durable but with serious problems.

“In the parlance of bursting investment bubbles, this is called a ‘dead-cat bounce.’” Desperate to continue, they come back hoping to bring the price back, but it never lasts". — Kurt Eichenvaldi

However, there are a number of reasons that suggest this financial experiment will not last long, and we are in fact in the face of another speculative bubble according to a recent report by the WSJ, where 96% of the economists surveyed support the idea. did.

As Hyman Minsky has said before "Anyone can make money: the problem is in accepting it". That is, the greater the power of the issuer to use its currency, the greater its strength. This is why the strongest and most used currency is issued by the most powerful state in the world (in military, economic, technological and cultural terms) capable of coercing its use: the US dollar.

The bitcoin boom marks a fundamental event that we have been experiencing over the past few years. Cultural anger is not letting us fully benefit from all the technological innovations that come every day. As Eric Taylor, Google's X Research and Development CEO, has said that "technology has always been growing at a fast rate while human adaptability has only been growing at a slow, linear rate".