The Internet is filled with information about cryptocurrencies, its growth, offers of income in bitcoins and business training with virtual finance. Learn to mine, extract bitcoins, and everything else – under the slogans of ease of action and affordability of income. All this leads to the swelling of the soap bubble. What will be next?
Cryptocurrency is a mathematical unit created by computer users for use as an electronic payment function. The designation of a virtual coin by a mathematical unit was initiated by Satoshi Nakamoto, who created (in contrast to traditional ones) a different payment system in terms of operation.
The unit of account can be created (produce, produce). Computer-based complex equipment is used for “production” processes, with a continuous increase in power and, accordingly, an increase in electricity consumption. Equipment began to be called farms, hangars, platforms.
Created by miners (from the word “mining”), Bitcoin has gained nominal value and even recognition in a number of retailers over the years of its growth. It became possible for them to pay for the real goods.
The critical currency will “bubble”
The basis of the formation of financial bubbles is several reasons. These include:
an excess of money from investors, including at the expense of a loan rate;
psychological manifestations of the population (greed, the desire for enrichment in all sorts of ways, the fear of poverty);
speculative “stuffing” on the exchanges to lower or lower the exchange rates of stocks, currencies and other assets and
The signs of the emerging critical currency “bubble” by experts and financial scientists include:
turning it into a liquid product with manifestations from the market participants of the above psychological factors;
abnormal price dynamics for cryptoactives, similar to previously occurring similar phenomena;
Bitcoin mining cannot be an endless process, nor can the power of computers for calculating, decrypting data and decoding transactions and other typical manifestations increase endlessly.
The specialists of Morgan Stanley (American commercial bank) consider: the Bitcoin schedule will drop to zero, as it has no prospects to become a real payment system. The use of cryptocurrency technology in international financial relations will be hampered by the impossibility of an infinite increase in electronic capacity.
The billionaire financier, Soros, in his speech on January 26, 2018 at the WEF in Davos, negatively reacted to investments in mining, cryptomonet, production and procurement of relevant equipment. His words: “This is not a currency. This is speculation, based on false notions.”