What’s the buzz about Bitcoin Cryptocurrency?

We all know Elon Musk is a fan. But what’s the fuss about? And when will the Bitcoin bubble burst?

The cryptocurrency market is subject to extreme price fluctuations, upwards or downwards, just like the stock market. The recent purchase by Tesla of $1.5 billion of Bitcoin is one example of the volatility that can be experienced in the crypto market.

For example, from the end of 2013 to 2014 and again in the middle of 2017 to 2018, there were many highs and lowers for cryptocurrencies.

Analyzing the cryptocurrency market movement over 52 weeks reveals that the most significant market capitalization has been seen in the last few weeks.

  • Bitcoin (The no. 1 cryptocurrency in market capitalization) had a 52-week low of US$4106 and a 52-week high of US$58,000. (which are a factor 14.2 apart).
  • Ethereum (No.2 in market capitalization) had a 52-week low of US$95 and a 52-week high of US$2036 (factor 21.4 apart).
  • Cardano (No.3 in market capitalization) had a 52-week low of US$0.01913 and a 52-week high of US$1.48 (factor 77.4 apart).

This level of volatility within a year is rare in the stock exchange. It’s not something that happens once-off to one cryptocurrency.

Understanding the Blockchain ecosystem

Blockchain technology has rapidly advanced over the last few years as more developers, researchers, and companies adopt it.

The first generation of blockchain platforms had many limitations, such as high energy consumption, limited support for smart contracts, and other restrictions.

Hundreds of platforms and projects seek to improve the various aspects of blockchain technology. These include hundreds of highly-qualified researchers and thousands of skilled engineers.

Global leaders believe that blockchain solutions can make a significant economic impact.

This potential is only possible if there are technological advancements, acceptance of blockchain solutions in the industry, the regulation of the blockchain space, and the development and implementation of new business models that use the technology.

Connecting back to the crypto market

The recent price increases in cryptocurrency may be partially or fully justified by market participants’ perceptions of factors that will affect the prospects for blockchain platforms. The financial added value that the blockchain ecosystem generates will determine the long-term value of cryptocurrencies.

We can see that internet usage exploded in the 1990s, which was recognized as a significant turning point in the history of the Internet. Many net-related companies created and developed applications, technologies, and services.

Excessive speculation created a market bubble, forcing many companies out of business.

However, the Internet proved revolutionary, and some companies formed in those days are still among the top 100.

Blockchain technology’s potential will be realized, and many current blockchain projects and platforms may fail. This could lead to a drastic reduction in value or even disappearance.

Some of them could be huge winners.

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