Another milestone for Bitcoin, but I haven’t heard anyone talking about this…

Posted on: November 28th, 2017 by jms No Comments

Bitcoin is on fire. It seems nothing can stop it’s growth. We’ve seen developers try to branch off with newer versions of Bitcoin, and we’ve seen governments try to regulate it to little of no avail. Bitcoin has earned its keep as far as I’m concerned. I am a big advocate for cryptocurrencies, especially Bitcoin, but I still have my doubts, and its not based on anything I’ve been reading or hearing anyone talk about.


I am a Bitcoin owner and I got in early, but just not early enough to cash in. Still, I’ve seen mind boggling growth and I can’t help but to get excited about it. I want Bitcoin to grow and grow and grow so that, one day, I can cash in and retire from my normal day to day routine. But that’s exactly where I struggle to see Bitcoins true worth, and why I’m leaning towards the speculative bubble theory.


You see, I’m basing the value of Bitcoin entirely on what I can one day cash it in for. Most of us are. That’s the irony of it all. The value Bitcoin is still completely tied to fiat currencies, even though its purpose for existing is to be an alternative for the status quo. We can’t seem to decouple the value of Bitcoin from other fiat currencies, resulting in it’s true potential being stifled by a lack of trust in what Bitcoin is really meant for.


I’m happy to ride this wave as far as it will take me, but if Bitcoin ever does reach $100,000, $200,000, or even $1,000,000 per coin, I wonder if cashing in will be an option at that point. By then, I imagine Bitcoin will have become a new standard for handling transactions, and the buying power that kind of valuation offers might not be worth trading away so easily. In that regard, it’s hardly a store of value like gold, stock, or bond investments that can one day be redeemed for spending cash. It will mean so much more if the day ever comes when Bitcoin is worth what dreamers dream today.


And that’s what worries me and why I lean towards the bubble theory. A lot will have to transpire in order for Bitcoin to become a new standard. And until it can become a new standard, we can’t truly valuate it as something more than a speculative bubble. Sure there are problems Bitcoin can solve, like double-spending protection and lower cost transactions. But are these problems enough to force massive adoption? For now it’s more of a novelty and really neat idea. Don’t get me wrong, I’m all for the idea of a free market currency, but that’s the layman in me talking.


I’d love to hear what others have to say about my thoughts. Have I completely missed the mark with my theories, or is my speculation sound?


Please let me know by commenting below.