Unless you’ve been living underneath a rock, you would know about the ongoing cryptocurrency fad. Cryptocurrency has been exploding in mainstream investment news media lately like never before. You would swear that the cryptocurrency mania has suddenly appeared out of nowhere, but you’ll be incorrect for thinking that. cryptocurrency first began making headlines back in 2012 with Bitcoin. Does the Robert Ulbricht or “Dread Pirate Roberts” case ring any bells? Since then, the cryptocurrency market has made amazing strides. Back in 2012, Bitcoin was the only well-known cryptocurrency on the market. It was the only cryptocurrency with a promising future and is the OG of showcasing the usage of the blockchain technology. Now, there are tons of stable and equally ambitious coins out there that can be taken as serious as Bitcoin.
Even if you don’t believe in a future of digital assets, I’m sure you can agree that it’s a worthwhile investment. For example, if you invested $1,000 in Bitcoin back in 2012 your investment would be worth over $100million. This fact alone has caused a massive flock of investors to invest in the cryptocurrency market. In due time, a ton of investors and average Joes alike has begun sharing their success stories. Some of these stories seem almost too good to be true. One story posted on Reddit about the cryptocurrency Ripple has shown an investment of over $2,000 with a 1000% return in a time span of 4 months. This is almost outrageously to good to be true -and as time goes on- more stories like this come about. These continuous success stories have led to an explosion of investments in cryptocurrency. This is what investors and graph analytics will call a “bubble”.
As of the timespan of May and July, the average increase of a cryptocurrency is almost 50%. 1 out of 2 cryptocurrencies increases by that percentage; meaning you can go all in on any cryptocurrency and possibly double your investment without any prior trading knowledge. This has led to a digital gold rush. Average joes are now making returns that 10-year investing veterans dream of making. A wide slew of investors from all over the world is now betting big on the cryptocurrency fiasco. Most win, however, many lose.
The problem with such a once-in-a-lifetime opportunity like cryptocurrency is what the cryptocurrency community would call -excuse my language- shitcoins. The definition of shitcoins can be a wide variety of things: scams, bad community, or horrible development team. Shitcoins are only made by developers to make the developers rich. As stated by the cryptocurrency community, shitcoins are only developed to be pumped. Once pumped, the developers will dump these coins and quickly take the profit and stop working on the project altogether. Leaving many investors and long-time fans of the coin disappointed and broke. Unfortunately, like most scams, it’s nearly impossible to distinguish between what’s a scam and what’s not. In addition, like we see over and over again with bubbles, human greed and selfishness lead to our own disasters. For example, the cryptocurrencies Stellar Lumens and Ripple has enough evidence to be labeled a scam. However, supporters of these two shitcoins are ignoring all statistical truths and the numerous controversies that follow these coins. Along with people’s unrealistic speculation and overvaluation of these coins are what causing this massive bubble.
This doesn’t mean cryptocurrencies are bad; actually, cryptocurrencies is the most revolutionary movement in technology since the internet. Cryptocurrencies have the power to shut down every bank, trade, and fiat currency in the world. Cryptocurrency can build governments, pay countries debt, and be the same exact value no matter where you are. Meaning, you can be the same billionaire, millionaire, or thousandaire even if you’re in Zimbabwe, Russia, or the United States. It’s so groundbreaking and disrupting that it is bringing forth the idea of worldwide communism. Critics and professional economic analytics have agreed that cryptocurrency can undoubtedly change human history forever. Picture living in a world where all economies are equal and GDP’s are based on the amount of mined currency. The problem -as of now- is discovering which cryptocurrency will be this revolution. This is what is causing this bubble and is traversing thousands of dollars being poured into different cryptocurrencies. While some of these people are pouring their money in for a get-rich-quick scheme, others are expecting something much more.
However, there is a bit of resistance towards this idea of worldwide communism. Previously stated shitcoins are defined as scams, bad communities, or horrible development teams. However, shitcoins are also defined if they are going against the philosophy of people that actually support the cryptocurrency movement. One shit coin, in particular, is XRP. XRP is considered the Rothschild of the cryptocurrency movement. There has been speculation if XRP is even a legit coin; even if the speculation is false and it is legit, XRP could derail every philosophy that cryptocurrency fans have of the future. XRP is one of the few coins that plans on working with banking institutions. Not only that, it’s decentralized and has some shady people working behind it. Sadly, XRP’s reputation has spiked in the past 3 months and don’t plan on slowing down in the forthcoming months. As of writing this XRP’s price has spiked by over 300% and doesn’t plan on slowing down. Asia is one of XRP’s biggest fanbase and banks are already integrating the software to their institution. In addition, XRP is making a ton of people rich.
It seems as if every few hundred centuries a major and disruptive technology or movement comes to shake present society; cryptocurrency will be remembered as one of them. It has made a ton of people extremely wealthy and -due to the bubble- could make a ton more broke. The cryptocurrency bubble could be one of the largest bubbles that will ever happen. It will be hated and loved by many but it will also be the greatest thing to ever affect human society since the creation of the wheel.